DHAMPUR SUGAR MILLS 2020-21 Annual Report Analysis

Wed, 31 Mar

DHAMPUR SUGAR MILLS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

DHAMPUR SUGAR MILLS Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY21 as against 10.1% in FY20.
• Depreciation charges increased by 2.2% and finance costs decreased by 26.8% YoY, respectively.
• Other income declined by 50.1% YoY.
• Net profit for the year grew by 6.2% YoY.
• Net profit margins during the year declined from 6.2% in FY20 to 5.6% in FY21.

DHAMPUR SUGAR MILLS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,568	40,827	18.1%
Other income	Rs m	541	270	-50.1%
Total Revenues	Rs m	35,109	41,097	17.1%
Gross profit	Rs m	3,494	4,538	29.9%
Depreciation	Rs m	760	777	2.2%
Interest	Rs m	1,202	880	-26.8%
Profit before tax	Rs m	2,073	3,151	52.1%
Tax	Rs m	-84	862	-1,129.5%
Profit after tax	Rs m	2,156	2,290	6.2%
Gross profit margin	%	10.1	11.1
Effective tax rate	%	-4.0	27.3
Net profit margin	%	6.2	5.6

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DHAMPUR SUGAR MILLS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 16 billion as compared to Rs 21 billion in FY20, thereby witnessing an decrease of -24.7%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 23.2%.
• Current assets fell 17% and stood at Rs 19 billion, while fixed assets fell 0% and stood at Rs 17 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 35 billion as against Rs 39 billion during FY20, thereby witnessing a fall of 10%.

DHAMPUR SUGAR MILLS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,617	15,601	14.6
Current Liabilities	Rs m	20,615	15,524	-24.7
Long-term Debt	Rs m	4,166	3,201	-23.2
Total Liabilities	Rs m	38,985	35,193	-9.7
Current assets	Rs m	22,259	18,542	-16.7
Fixed Assets	Rs m	16,727	16,651	-0.5
Total Assets	Rs m	38,985	35,193	-9.7

DHAMPUR SUGAR MILLS Cash Flow Statement Analysis

• DHAMPUR SUGAR MILLS's cash flow from operating activities (CFO) during FY21 stood at Rs 9 billion, an improvement of 160.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -800 million, an improvement of 65.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 625 million from the Rs -33 million net cash flows seen during FY20.

DHAMPUR SUGAR MILLS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	3,382	8,803	160.3%
Cash Flow from Investing Activities	Rs m	-485	-800	-
Cash Flow from Financing Activities	Rs m	-2,929	-7,377	-
Net Cash Flow	Rs m	-33	625	-

Current Valuations for DHAMPUR SUGAR MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.5, an improvement from the EPS of Rs 32.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 183.0, stands at 5.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	520.7	615.0
TTM Earnings per share	Rs	32.5	34.5
Diluted earnings per share	Rs	32.5	34.5
Price to Cash Flow	x	1.9	3.2
TTM P/E ratio	x	2.5	5.3
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	10,350	9,777
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for DHAMPUR SUGAR MILLS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.1x during FY20. 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 improved and stood at 4.6x during FY21, from 2.7x during FY20. 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 14.7% during FY21, from 15.8% during FY21. 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 21.4% during FY21, from 18.4% during FY20. 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 9.0% during FY21, from 8.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	4	3
Interest coverage	x	2.7	4.6
Debt to equity ratio	x	0.3	0.2
Return on assets	%	8.6	9.0
Return on equity	%	15.8	14.7
Return on capital employed	%	18.4	21.4

To see how DHAMPUR SUGAR MILLS has performed over the last 5 years, please visit here.

DHAMPUR SUGAR MILLS Share Price Performance

Over the last one year, DHAMPUR SUGAR MILLS share price has moved up from Rs 82.8 to Rs 183.0, registering a gain of Rs 100.3 or around 121.1%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for DHAMPUR SUGAR MILLS and quarterly results for DHAMPUR SUGAR MILLS)

Read: Latest Annual Report Analysis of DHAMPUR SUGAR MILLS