DEVYANI INTERNATIONAL 2023-24 Annual Report Analysis

Tue, 18 Jun

DEVYANI INTERNATIONAL 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.

DEVYANI INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.3% in FY24 as against 21.2% in FY23.
• Depreciation charges increased by 38.0% and finance costs increased by 26.6% YoY, respectively.
• Other income declined by 7.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 8.8% in FY23 to 0.3% in FY24.

DEVYANI INTERNATIONAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,977	35,563	18.6%
Other income	Rs m	353	327	-7.4%
Total Revenues	Rs m	30,330	35,890	18.3%
Gross profit	Rs m	6,347	5,448	-14.2%
Depreciation	Rs m	2,788	3,848	38.0%
Interest	Rs m	1,493	1,890	26.6%
Profit before tax	Rs m	2,419	37	-98.5%
Tax	Rs m	-206	133	NA
Profit after tax	Rs m	2,625	-97	NA
Gross profit margin	%	21.2	15.3
Effective tax rate	%	-8.5	362.6
Net profit margin	%	8.8	-0.3

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DEVYANI INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 71.2%.
• Long-term debt stood at Rs 7 billion as compared to Rs 767 million during FY23, a growth of 846.4%.
• Current assets rose 57% and stood at Rs 5 billion, while fixed assets rose 70% and stood at Rs 44 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 49 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 69%.

DEVYANI INTERNATIONAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,538	10,312	8.1
Current Liabilities	Rs m	5,324	9,113	71.2
Long-term Debt	Rs m	767	7,255	846.4
Total Liabilities	Rs m	28,891	48,812	69.0
Current assets	Rs m	3,099	4,861	56.9
Fixed Assets	Rs m	25,792	43,951	70.4
Total Assets	Rs m	28,891	48,812	69.0

DEVYANI INTERNATIONAL Cash Flow Statement Analysis

• DEVYANI INTERNATIONAL's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -16 billion, an improvement of 343.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 9 billion, an improvement of 415% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 51 million net cash flows seen during FY23.

DEVYANI INTERNATIONAL 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	6,370	5,925	-7.0%
Cash Flow from Investing Activities	Rs m	-3,497	-15,509	-
Cash Flow from Financing Activities	Rs m	-2,827	8,893	-
Net Cash Flow	Rs m	51	1,051	1,943.9%

Current Valuations for DEVYANI INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 178.0, stands at -2,224.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 20.8 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 59.5 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	24.9	29.5
TTM Earnings per share	Rs	2.2	-0.1
Diluted earnings per share	Rs	2.2	-0.1
Price to Cash Flow	x	32.2	59.5
TTM P/E ratio	x	66.4	-2,224.3
Price / Book Value ratio	x	22.0	21.6
Market Cap	Rs m	210,296	223,114
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DEVYANI INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.6x 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 1.0x during FY24, from 2.6x 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 -0.9% during FY24, from 27.5% 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 11.0% during FY24, from 38.0% 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 3.7% during FY24, from 14.3% 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	0.6	0.5
Debtors’ Days	Days	4	5
Interest coverage	x	2.6	1.0
Debt to equity ratio	x	0.1	0.7
Return on assets	%	14.3	3.7
Return on equity	%	27.5	-0.9
Return on capital employed	%	38.0	11.0

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

DEVYANI INTERNATIONAL Share Price Performance

Over the last one year, DEVYANI INTERNATIONAL share price has moved down from Rs 192.1 to Rs 178.0, registering a loss of Rs 14.1 or around 7.3%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for DEVYANI INTERNATIONAL and quarterly results for DEVYANI INTERNATIONAL)