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DHP INDIA 2021-22 Annual Report Analysis

Mon, 20 Jun

DHP INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DHP INDIA Income Statement Analysis

• Operating income during the year rose 69.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.9% in FY22 as against 41.9% in FY21.
• Depreciation charges increased by 18.5% and finance costs increased by 13.0% YoY, respectively.
• Other income grew by 643.6% YoY.
• Net profit for the year grew by 53.9% YoY.
• Net profit margins during the year declined from 33.5% in FY21 to 30.4% in FY22.

DHP INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	690	1,171	69.7%
Other income	Rs m	14	102	643.6%
Total Revenues	Rs m	704	1,273	80.9%
Gross profit	Rs m	289	385	33.0%
Depreciation	Rs m	17	21	18.5%
Interest	Rs m	2	2	13.0%
Profit before tax	Rs m	284	464	63.4%
Tax	Rs m	53	108	105.4%
Profit after tax	Rs m	231	356	53.9%
Gross profit margin	%	41.9	32.9
Effective tax rate	%	18.5	23.3
Net profit margin	%	33.5	30.4

For Investors: Our Big Prediction

DHP INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 223 million as compared to Rs 125 million in FY21, thereby witnessing an increase of 79.2%.
• Current assets rose 37% and stood at Rs 2 billion, while fixed assets rose 93% and stood at Rs 198 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 42%.

DHP INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,094	1,500	37.1
Current Liabilities	Rs m	125	223	79.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,236	1,751	41.7
Current assets	Rs m	1,133	1,553	37.0
Fixed Assets	Rs m	103	198	92.6
Total Assets	Rs m	1,236	1,751	41.7

DHP INDIA Cash Flow Statement Analysis

• DHP INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 83 million, an improvement of 35.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -73 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -15 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -6 million from the Rs -47 million net cash flows seen during FY21.

DHP INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	61	83	35.0%
Cash Flow from Investing Activities	Rs m	-86	-73	-
Cash Flow from Financing Activities	Rs m	-22	-15	-
Net Cash Flow	Rs m	-47	-6	-

Current Valuations for DHP INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 118.7, an improvement from the EPS of Rs 77.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 952.6, stands at 8.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	230.0	390.4
TTM Earnings per share	Rs	77.1	118.7
Diluted earnings per share	Rs	77.1	118.7
Price to Cash Flow	x	4.5	4.7
TTM P/E ratio	x	4.8	8.0
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	1,019	1,771
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for DHP INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.0x during FY22, from 9.1x during FY21. 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 255.9x during FY22, from 177.3x during FY21. 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 improved and stood at 23.7% during FY22, from 21.2% during FY22. 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 31.1% during FY22, from 26.1% during FY21. 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 20.4% during FY22, from 18.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	9.1	7.0
Debtors’ Days	Days	47,474,167	63,291,488
Interest coverage	x	177.3	255.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.8	20.4
Return on equity	%	21.2	23.7
Return on capital employed	%	26.1	31.1

To see how DHP INDIA has performed over the last 5 years, please visit here.

DHP INDIA Share Price Performance

Over the last one year, DHP INDIA share price has moved up from Rs 551.7 to Rs 952.6, registering a gain of Rs 400.9 or around 72.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 24,689.7 (down 2.1%). Over the last one year it has moved up from 22,182.9 to 24,689.7, a gain of 2,507 points (up 11.3%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

(To know more, check out historical annual results for DHP INDIA and quarterly results for DHP INDIA)