DIAMOND POWER 2023-24 Annual Report Analysis

Thu, 24 Oct

DIAMOND POWER 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.

DIAMOND POWER Income Statement Analysis

• Operating income during the year rose 2121.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.4% in FY24 as against 153.0% in FY23.
• Depreciation charges increased by 3.9% and finance costs increased by 929.4% YoY, respectively.
• Other income grew by 184.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.0% in FY23 to 5.0% in FY24.

DIAMOND POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	155	3,434	2,121.6%
Other income	Rs m	3	7	184.8%
Total Revenues	Rs m	157	3,441	2,089.2%
Gross profit	Rs m	-237	424	NA
Depreciation	Rs m	188	196	3.9%
Interest	Rs m	7	67	929.4%
Profit before tax	Rs m	-429	169	NA
Tax	Rs m	0	-1	0.0
Profit after tax	Rs m	-429	170	NA
Gross profit margin	%	-153.0	12.4
Effective tax rate	%	0.0	-0.7
Net profit margin	%	0.0	5.0

Don't Miss: Key Information for Long-term Investors

DIAMOND POWER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 433 million in FY23, thereby witnessing an increase of 214.5%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 14.1%.
• Current assets rose 78% and stood at Rs 3 billion, while fixed assets fell 0% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 8%.

DIAMOND POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-9,799	-9,733	NA
Current Liabilities	Rs m	433	1,363	214.5
Long-term Debt	Rs m	3,674	3,157	-14.1
Total Liabilities	Rs m	14,068	15,180	7.9
Current assets	Rs m	1,455	2,588	77.9
Fixed Assets	Rs m	12,613	12,592	-0.2
Total Assets	Rs m	14,068	15,180	7.9

DIAMOND POWER Cash Flow Statement Analysis

• DIAMOND POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 274 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -164 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -75 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 36 million from the Rs 27 million net cash flows seen during FY23.

DIAMOND POWER 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	4,419	274	-93.8%
Cash Flow from Investing Activities	Rs m	110	-164	-
Cash Flow from Financing Activities	Rs m	-4,502	-75	-
Net Cash Flow	Rs m	27	36	32.9%

Current Valuations for DIAMOND POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.2, an improvement from the EPS of Rs -8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,662.3, stands at 312.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -9.0 times, while the price to sales ratio stands at 25.5 times.
• The company's price to cash flow (P/CF) ratio stood at 37.8 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	2.9	65.2
TTM Earnings per share	Rs	-8.1	3.2
Diluted earnings per share	Rs	-8.1	3.2
Price to Cash Flow	x	-0.4	37.8
TTM P/E ratio	x	-0.2	312.1
Price / Book Value ratio	x	0.0	-1.4
Market Cap	Rs m	88	13,829
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DIAMOND POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 3.4x 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 improved and stood at 3.5x during FY24, from -64.8x 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 -1.7% during FY24, from 4.4% 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 -3.6% during FY24, from 6.9% 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 improved and stood at 1.6% during FY24, from -3.0% 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	3.4	1.9
Debtors’ Days	Days	1,553	625
Interest coverage	x	-64.8	3.5
Debt to equity ratio	x	-0.4	-0.3
Return on assets	%	-3.0	1.6
Return on equity	%	4.4	-1.7
Return on capital employed	%	6.9	-3.6

To see how DIAMOND POWER has performed over the last 5 years, please visit here.

DIAMOND POWER Share Price Performance

Over the last one year, DIAMOND POWER share price has moved up from Rs 62.5 to Rs 1,662.3, registering a gain of Rs 1,599.8 or around 2561.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,964.9 (up 1.2%). Over the last one year it has moved up from 4,351.9 to 7,964.9, a gain of 3,613 points (up 83.0%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for DIAMOND POWER and quarterly results for DIAMOND POWER)