DOLAT ALGOTECH 2023-24 Annual Report Analysis

Thu, 12 Sep

DOLAT ALGOTECH 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.

DOLAT ALGOTECH Income Statement Analysis

• Operating income during the year rose 37.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 61.5% in FY24 as against 63.0% in FY23.
• Depreciation charges increased by 63.8% and finance costs increased by 7.0% YoY, respectively.
• Other income grew by 20.0% YoY.
• Net profit for the year grew by 35.6% YoY.
• Net profit margins during the year declined from 48.2% in FY23 to 47.6% in FY24.

DOLAT ALGOTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,413	3,315	37.4%
Other income	Rs m	378	453	20.0%
Total Revenues	Rs m	2,791	3,768	35.0%
Gross profit	Rs m	1,521	2,039	34.0%
Depreciation	Rs m	7	12	63.8%
Interest	Rs m	266	284	7.0%
Profit before tax	Rs m	1,626	2,195	35.1%
Tax	Rs m	462	618	33.8%
Profit after tax	Rs m	1,164	1,578	35.6%
Gross profit margin	%	63.0	61.5
Effective tax rate	%	28.4	28.1
Net profit margin	%	48.2	47.6

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DOLAT ALGOTECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -13.5%.
• Long-term debt down at Rs 0 million as compared to Rs 1 million during FY23, a fall of 69.4%.
• Current assets rose 27% and stood at Rs 4 billion, while fixed assets rose 8% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 16%.

DOLAT ALGOTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,392	7,921	23.9
Current Liabilities	Rs m	1,629	1,409	-13.5
Long-term Debt	Rs m	1	0	-69.4
Total Liabilities	Rs m	8,044	9,358	16.3
Current assets	Rs m	3,549	4,495	26.7
Fixed Assets	Rs m	4,495	4,863	8.2
Total Assets	Rs m	8,044	9,358	16.3

DOLAT ALGOTECH Cash Flow Statement Analysis

• DOLAT ALGOTECH's cash flow from operating activities (CFO) during FY24 stood at Rs -121 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 333 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -47 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 165 million from the Rs -439 million net cash flows seen during FY23.

DOLAT ALGOTECH 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	787	-121	-
Cash Flow from Investing Activities	Rs m	-1,181	333	-
Cash Flow from Financing Activities	Rs m	-45	-47	-
Net Cash Flow	Rs m	-439	165	-

Current Valuations for DOLAT ALGOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 175.0, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 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	13.7	18.8
TTM Earnings per share	Rs	6.6	9.0
Diluted earnings per share	Rs	6.6	9.0
Price to Cash Flow	x	6.4	7.5
TTM P/E ratio	x	6.4	14.2
Price / Book Value ratio	x	2.0	1.5
Market Cap	Rs m	13,011	11,907
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for DOLAT ALGOTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY24, from 2.2x 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 improved and stood at 8.7x during FY24, from 7.1x 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 improved and stood at 19.9% during FY24, from 18.2% 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 improved and stood at 31.3% during FY24, from 29.6% 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 19.9% during FY24, from 17.8% 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	2.2	3.2
Debtors’ Days	Days	0	0
Interest coverage	x	7.1	8.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.8	19.9
Return on equity	%	18.2	19.9
Return on capital employed	%	29.6	31.3

To see how DOLAT ALGOTECH has performed over the last 5 years, please visit here.

DOLAT ALGOTECH Share Price Performance

Over the last one year, DOLAT ALGOTECH share price has moved up from Rs 47.7 to Rs 175.0, registering a gain of Rs 127.3 or around 266.8%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for DOLAT ALGOTECH and quarterly results for DOLAT ALGOTECH)