DCW. 2023-24 Annual Report Analysis

Wed, 11 Sep

DCW. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

DCW. Income Statement Analysis

• Operating income during the year fell 28.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 63.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY24 as against 18.0% in FY23.
• Depreciation charges increased by 4.0% and finance costs decreased by 41.7% YoY, respectively.
• Other income grew by 19.1% YoY.
• Net profit for the year declined by 91.8% YoY.
• Net profit margins during the year declined from 7.3% in FY23 to 0.8% in FY24.

DCW. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,338	18,716	-28.9%
Other income	Rs m	153	183	19.1%
Total Revenues	Rs m	26,491	18,898	-28.7%
Gross profit	Rs m	4,754	1,744	-63.3%
Depreciation	Rs m	902	938	4.0%
Interest	Rs m	1,261	735	-41.7%
Profit before tax	Rs m	2,744	253	-90.8%
Tax	Rs m	824	97	-88.3%
Profit after tax	Rs m	1,920	157	-91.8%
Gross profit margin	%	18.0	9.3
Effective tax rate	%	30.0	38.2
Net profit margin	%	7.3	0.8

Don't Miss: Key Information for Long-term Investors

DCW. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 22.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 26.0%.
• Current assets rose 0% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 1%.

DCW. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,251	10,317	0.6
Current Liabilities	Rs m	4,995	6,136	22.8
Long-term Debt	Rs m	3,807	2,817	-26.0
Total Liabilities	Rs m	20,633	20,885	1.2
Current assets	Rs m	6,876	6,907	0.4
Fixed Assets	Rs m	13,757	13,979	1.6
Total Assets	Rs m	20,633	20,885	1.2

DCW. Cash Flow Statement Analysis

• DCW.'s cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 11.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -986 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 million from the Rs -778 million net cash flows seen during FY23.

DCW. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,259	2,521	11.6%
Cash Flow from Investing Activities	Rs m	-1,646	-986	-
Cash Flow from Financing Activities	Rs m	-1,391	-1,527	-
Net Cash Flow	Rs m	-778	8	-

Current Valuations for DCW.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 93.7, stands at 223.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	89.2	63.4
TTM Earnings per share	Rs	6.5	0.5
Diluted earnings per share	Rs	6.5	0.5
Price to Cash Flow	x	4.5	15.4
TTM P/E ratio	x	6.7	223.0
Price / Book Value ratio	x	1.4	1.6
Market Cap	Rs m	14,182	16,904
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for DCW.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 1.3x during FY24, from 3.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 1.5% during FY24, from 18.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 7.5% during FY24, from 28.5% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 4.3% during FY24, from 15.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.4	1.1
Debtors’ Days	Days	184	223
Interest coverage	x	3.2	1.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	15.4	4.3
Return on equity	%	18.7	1.5
Return on capital employed	%	28.5	7.5

To see how DCW. has performed over the last 5 years, please visit here.

DCW. Share Price Performance

Over the last one year, DCW. share price has moved up from Rs 54.1 to Rs 93.7, registering a gain of Rs 39.6 or around 73.1%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for DCW. and quarterly results for DCW.)