DHAMPUR SUGAR MILLS 2023-24 Annual Report Analysis

Sun, 18 Aug

DHAMPUR SUGAR MILLS 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.

DHAMPUR SUGAR MILLS Income Statement Analysis

• Operating income during the year fell 17.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY24 as against 14.8% in FY23.
• Depreciation charges increased by 12.9% and finance costs increased by 3.3% YoY, respectively.
• Other income grew by 83.6% YoY.
• Net profit for the year declined by 14.9% YoY.
• Net profit margins during the year grew from 7.7% in FY23 to 8.0% in FY24.

DHAMPUR SUGAR MILLS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,455	16,910	-17.3%
Other income	Rs m	174	319	83.6%
Total Revenues	Rs m	20,629	17,229	-16.5%
Gross profit	Rs m	3,033	2,663	-12.2%
Depreciation	Rs m	521	588	12.9%
Interest	Rs m	459	474	3.3%
Profit before tax	Rs m	2,228	1,921	-13.8%
Tax	Rs m	648	576	-11.2%
Profit after tax	Rs m	1,580	1,345	-14.9%
Gross profit margin	%	14.8	15.7
Effective tax rate	%	29.1	30.0
Net profit margin	%	7.7	8.0

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DHAMPUR SUGAR MILLS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 24.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 24.0%.
• Current assets rose 21% and stood at Rs 12 billion, while fixed assets fell 5% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 25 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 6%.

DHAMPUR SUGAR MILLS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,426	11,003	5.5
Current Liabilities	Rs m	8,115	10,090	24.3
Long-term Debt	Rs m	2,171	1,649	-24.0
Total Liabilities	Rs m	23,143	24,561	6.1
Current assets	Rs m	10,010	12,099	20.9
Fixed Assets	Rs m	13,130	12,460	-5.1
Total Assets	Rs m	23,143	24,561	6.1

DHAMPUR SUGAR MILLS Cash Flow Statement Analysis

• DHAMPUR SUGAR MILLS's cash flow from operating activities (CFO) during FY24 stood at Rs -526 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -916 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 145% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -357 million from the Rs -61 million net cash flows seen during FY23.

DHAMPUR SUGAR MILLS 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	3,829	-526	-
Cash Flow from Investing Activities	Rs m	-1,464	-916	-
Cash Flow from Financing Activities	Rs m	-2,426	1,085	-
Net Cash Flow	Rs m	-61	-357	-

Current Valuations for DHAMPUR SUGAR MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an decline from the EPS of Rs 23.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 203.6, stands at 14.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	308.1	258.6
TTM Earnings per share	Rs	23.8	20.6
Diluted earnings per share	Rs	24.2	20.6
Price to Cash Flow	x	7.0	9.0
TTM P/E ratio	x	9.2	14.7
Price / Book Value ratio	x	2.5	1.6
Market Cap	Rs m	25,908	17,398
Dividends per share (Unadj.)	Rs	6.0	0.0

Ratio Analysis for DHAMPUR SUGAR MILLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.2x 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 5.1x during FY24, from 5.9x 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 12.2% during FY24, from 15.2% 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 18.9% during FY24, from 21.3% 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 7.4% during FY24, from 8.8% 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	1.2	1.2
Debtors’ Days	Days	3	4
Interest coverage	x	5.9	5.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	8.8	7.4
Return on equity	%	15.2	12.2
Return on capital employed	%	21.3	18.9

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 down from Rs 254.7 to Rs 203.6, registering a loss of Rs 51.2 or around 20.1%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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