DCX SYSTEMS 2023-24 Annual Report Analysis

Wed, 9 Oct

DCX SYSTEMS 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.

DCX SYSTEMS Income Statement Analysis

• Operating income during the year rose 13.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY24 as against 6.7% in FY23.
• Depreciation charges increased by 181.7% and finance costs increased by 16.3% YoY, respectively.
• Other income grew by 68.0% YoY.
• Net profit for the year grew by 5.7% YoY.
• Net profit margins during the year declined from 5.7% in FY23 to 5.3% in FY24.

DCX SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,536	14,236	13.6%
Other income	Rs m	295	496	68.0%
Total Revenues	Rs m	12,832	14,732	14.8%
Gross profit	Rs m	837	799	-4.5%
Depreciation	Rs m	18	51	181.7%
Interest	Rs m	256	298	16.3%
Profit before tax	Rs m	858	946	10.3%
Tax	Rs m	141	188	33.6%
Profit after tax	Rs m	717	758	5.7%
Gross profit margin	%	6.7	5.6
Effective tax rate	%	16.4	19.9
Net profit margin	%	5.7	5.3

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

DCX SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 8.3%.
• Long-term debt stood at Rs 202 million as compared to Rs 58 million during FY23, a growth of 250.2%.
• Current assets rose 50% and stood at Rs 18 billion, while fixed assets rose 170% and stood at Rs 637 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 52%.

DCX SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,667	11,263	98.7
Current Liabilities	Rs m	6,456	6,990	8.3
Long-term Debt	Rs m	58	202	250.2
Total Liabilities	Rs m	12,149	18,450	51.9
Current assets	Rs m	11,913	17,813	49.5
Fixed Assets	Rs m	236	637	169.8
Total Assets	Rs m	12,149	18,450	51.9

DCX SYSTEMS Cash Flow Statement Analysis

• DCX SYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 44 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -13 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 2 billion from the Rs -2 billion net cash flows seen during FY23.

DCX SYSTEMS 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	-5,902	44	-
Cash Flow from Investing Activities	Rs m	219	-13	-
Cash Flow from Financing Activities	Rs m	3,638	2,418	-33.5%
Net Cash Flow	Rs m	-2,045	2,450	-

Current Valuations for DCX SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an decline from the EPS of Rs 7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 324.3, stands at 52.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 37.1 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	129.6	127.8
TTM Earnings per share	Rs	7.4	6.8
Diluted earnings per share	Rs	6.4	6.8
Price to Cash Flow	x	22.1	37.1
TTM P/E ratio	x	22.7	52.2
Price / Book Value ratio	x	3.9	2.7
Market Cap	Rs m	22,181	29,988
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DCX SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 1.8x 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 4.2x during FY24, from 4.3x 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 6.7% during FY24, from 12.6% 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 10.9% during FY24, from 19.5% 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 5.7% during FY24, from 8.0% 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	1.8	2.5
Debtors’ Days	Days	93	171
Interest coverage	x	4.3	4.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	5.7
Return on equity	%	12.6	6.7
Return on capital employed	%	19.5	10.9

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

DCX SYSTEMS Share Price Performance

Over the last one year, DCX SYSTEMS share price has moved up from Rs 296.2 to Rs 324.3, registering a gain of Rs 28.1 or around 9.5%.

Overall, the S&P BSE SENSEX is up 25.1% over the year.

(To know more, check out historical annual results for DCX SYSTEMS and quarterly results for DCX SYSTEMS)