DHANVARSHA FINVEST 2022-23 Annual Report Analysis

Mon, 12 Feb

DHANVARSHA FINVEST has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

DHANVARSHA FINVEST Income Statement Analysis

• Operating income during the year rose 62.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 46.2% in FY23 as against 47.5% in FY22.
• Depreciation charges increased by 62.4% and finance costs increased by 108.5% YoY, respectively.
• Other income grew by 1340.1% YoY.
• Net profit for the year declined by 84.2% YoY.
• Net profit margins during the year declined from 5.3% in FY22 to 0.5% in FY23.

DHANVARSHA FINVEST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	757	1,231	62.5%
Other income	Rs m	3	41	1,340.1%
Total Revenues	Rs m	760	1,272	67.3%
Gross profit	Rs m	360	569	57.9%
Depreciation	Rs m	47	77	62.4%
Interest	Rs m	244	508	108.5%
Profit before tax	Rs m	72	25	-65.7%
Tax	Rs m	32	18	-42.8%
Profit after tax	Rs m	40	6	-84.2%
Gross profit margin	%	47.5	46.2
Effective tax rate	%	44.6	74.4
Net profit margin	%	5.3	0.5

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DHANVARSHA FINVEST Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 73.2%.
• Long-term debt down at Rs 37 million as compared to Rs 382 million during FY22, a fall of 90.2%.
• Current assets rose 46% and stood at Rs 2 billion, while fixed assets rose 41% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 42%.

DHANVARSHA FINVEST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,656	2,048	23.7
Current Liabilities	Rs m	2,603	4,508	73.2
Long-term Debt	Rs m	382	37	-90.2
Total Liabilities	Rs m	4,775	6,789	42.2
Current assets	Rs m	1,276	1,856	45.5
Fixed Assets	Rs m	3,499	4,933	41.0
Total Assets	Rs m	4,775	6,789	42.2

DHANVARSHA FINVEST Cash Flow Statement Analysis

• DHANVARSHA FINVEST's cash flow from operating activities (CFO) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -658 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -205 million from the Rs 263 million net cash flows seen during FY22.

DHANVARSHA FINVEST Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-1,847	-1,514	-
Cash Flow from Investing Activities	Rs m	-731	-658	-
Cash Flow from Financing Activities	Rs m	2,841	1,966	-30.8%
Net Cash Flow	Rs m	263	-205	-

Current Valuations for DHANVARSHA FINVEST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 53.2, stands at 981.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 111.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	8.5	10.6
TTM Earnings per share	Rs	0.4	0.1
Diluted earnings per share	Rs	0.3	0.1
Price to Cash Flow	x	153.8	111.7
TTM P/E ratio	x	336.0	981.5
Price / Book Value ratio	x	25.3	4.5
Market Cap	Rs m	41,843	9,318
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DHANVARSHA FINVEST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY23, from 0.5x during FY22. 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 FY23, from 1.3x during FY22. 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 0.3% during FY23, from 2.4% during FY23. 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 improved and stood at 25.5% during FY23, from 15.5% during FY22. 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 improved and stood at 7.6% during FY23, from 5.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.5	0.4
Debtors’ Days	Days	794	1,156
Interest coverage	x	1.3	1.0
Debt to equity ratio	x	0.2	0.0
Return on assets	%	5.9	7.6
Return on equity	%	2.4	0.3
Return on capital employed	%	15.5	25.5

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

DHANVARSHA FINVEST Share Price Performance

Over the last one year, DHANVARSHA FINVEST share price has moved down from Rs 114.9 to Rs 53.2, registering a loss of Rs 61.7 or around 53.7%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for DHANVARSHA FINVEST and quarterly results for DHANVARSHA FINVEST)