DIXON TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

DIXON TECHNOLOGIES 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.

DIXON TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 46.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY21 as against 5.2% in FY20.
• Depreciation charges increased by 19.7% and finance costs decreased by 17.0% YoY, respectively.
• Other income declined by 69.7% YoY.
• Net profit for the year grew by 32.6% YoY.
• Net profit margins during the year declined from 2.7% in FY20 to 2.5% in FY21.

DIXON TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	44,001	64,482	46.5%
Other income	Rs m	52	16	-69.7%
Total Revenues	Rs m	44,053	64,497	46.4%
Gross profit	Rs m	2,275	2,919	28.3%
Depreciation	Rs m	365	437	19.7%
Interest	Rs m	394	327	-17.0%
Profit before tax	Rs m	1,568	2,170	38.4%
Tax	Rs m	363	572	57.8%
Profit after tax	Rs m	1,205	1,598	32.6%
Gross profit margin	%	5.2	4.5
Effective tax rate	%	23.1	26.4
Net profit margin	%	2.7	2.5

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DIXON TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 19 billion as compared to Rs 10 billion in FY20, thereby witnessing an increase of 80.9%.
• Long-term debt stood at Rs 800 million as compared to Rs 110 million during FY20, a growth of 625.7%.
• Current assets rose 76% and stood at Rs 22 billion, while fixed assets rose 45% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 28 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 68%.

DIXON TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,371	7,286	35.7
Current Liabilities	Rs m	10,340	18,707	80.9
Long-term Debt	Rs m	110	800	625.7
Total Liabilities	Rs m	16,970	28,457	67.7
Current assets	Rs m	12,462	21,911	75.8
Fixed Assets	Rs m	4,508	6,546	45.2
Total Assets	Rs m	16,970	28,457	67.7

DIXON TECHNOLOGIES Cash Flow Statement Analysis

• DIXON TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 167.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 635 million, an improvement of 211% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -318 million from the Rs 812 million net cash flows seen during FY20.

DIXON TECHNOLOGIES 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	2,373	1,701	-28.3%
Cash Flow from Investing Activities	Rs m	-993	-2,654	-
Cash Flow from Financing Activities	Rs m	-574	635	-
Net Cash Flow	Rs m	812	-318	-

Current Valuations for DIXON TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.3, an decline from the EPS of Rs 104.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,670.0, stands at 136.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 29.9 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 357.5 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	3,803.0	1,100.9
TTM Earnings per share	Rs	104.1	27.3
Diluted earnings per share	Rs	20.3	26.9
Price to Cash Flow	x	135.1	357.5
TTM P/E ratio	x	176.1	136.3
Price / Book Value ratio	x	7.2	99.9
Market Cap	Rs m	38,933	727,562
Dividends per share (Unadj.)	Rs	0.8	1.0

Ratio Analysis for DIXON TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.2x 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 7.6x during FY21, from 5.0x 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 21.9% during FY21, from 22.4% 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 declined and down at 30.9% during FY21, from 35.8% 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 declined and down at 6.8% during FY21, from 9.4% 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	1.2	1.2
Debtors’ Days	Days	427	616
Interest coverage	x	5.0	7.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	9.4	6.8
Return on equity	%	22.4	21.9
Return on capital employed	%	35.8	30.9

To see how DIXON TECHNOLOGIES has performed over the last 5 years, please visit here.

DIXON TECHNOLOGIES Share Price Performance

Over the last one year, DIXON TECHNOLOGIES share price has moved up from Rs 3,575.7 to Rs 3,670.0, registering a gain of Rs 94.4 or around 2.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

(To know more, check out historical annual results for DIXON TECHNOLOGIES and quarterly results for DIXON TECHNOLOGIES)

Read: Latest Annual Report Analysis of DIXON TECHNOLOGIES