DIXON TECHNOLOGIES 2023-24 Annual Report Analysis

Mon, 9 Sep

DIXON TECHNOLOGIES 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.

DIXON TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 45.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.0% in FY24 as against 4.2% in FY23.
• Depreciation charges increased by 41.2% and finance costs increased by 26.4% YoY, respectively.
• Other income grew by 302.1% YoY.
• Net profit for the year grew by 47.0% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 2.1% in FY24.

DIXON TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	121,920	176,909	45.1%
Other income	Rs m	56	226	302.1%
Total Revenues	Rs m	121,976	177,135	45.2%
Gross profit	Rs m	5,179	7,141	37.9%
Depreciation	Rs m	1,146	1,619	41.2%
Interest	Rs m	641	810	26.4%
Profit before tax	Rs m	3,448	4,938	43.2%
Tax	Rs m	897	1,189	32.6%
Profit after tax	Rs m	2,551	3,749	47.0%
Gross profit margin	%	4.2	4.0
Effective tax rate	%	26.0	24.1
Net profit margin	%	2.1	2.1

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DIXON TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 47 billion as compared to Rs 29 billion in FY23, thereby witnessing an increase of 60.9%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 22.5%.
• Current assets rose 54% and stood at Rs 48 billion, while fixed assets rose 40% and stood at Rs 22 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 70 billion as against Rs 47 billion during FY23, thereby witnessing a growth of 49%.

DIXON TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,681	16,764	32.2
Current Liabilities	Rs m	29,410	47,316	60.9
Long-term Debt	Rs m	1,452	1,126	-22.5
Total Liabilities	Rs m	46,794	69,895	49.4
Current assets	Rs m	31,393	48,363	54.1
Fixed Assets	Rs m	15,402	21,533	39.8
Total Assets	Rs m	46,794	69,895	49.4

DIXON TECHNOLOGIES Cash Flow Statement Analysis

• DIXON TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 49.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -700 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -166 million from the Rs 406 million net cash flows seen during FY23.

DIXON TECHNOLOGIES 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	7,258	5,843	-19.5%
Cash Flow from Investing Activities	Rs m	-3,556	-5,309	-
Cash Flow from Financing Activities	Rs m	-3,296	-700	-
Net Cash Flow	Rs m	406	-166	-

Current Valuations for DIXON TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.7, an improvement from the EPS of Rs 42.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12,176.7, stands at 168.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 43.5 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 57.6 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	2,047.0	2,957.4
TTM Earnings per share	Rs	42.8	62.7
Diluted earnings per share	Rs	42.6	62.7
Price to Cash Flow	x	46.3	57.6
TTM P/E ratio	x	67.6	168.4
Price / Book Value ratio	x	17.0	18.4
Market Cap	Rs m	215,717	308,949
Dividends per share (Unadj.)	Rs	3.0	5.0

Ratio Analysis for DIXON TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 7.1x during FY24, from 6.4x 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 22.4% during FY24, from 20.1% 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 32.1% during FY24, from 28.9% 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 declined and down at 6.5% during FY24, from 6.8% 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	1.1	1.0
Debtors’ Days	Days	514	478
Interest coverage	x	6.4	7.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.8	6.5
Return on equity	%	20.1	22.4
Return on capital employed	%	28.9	32.1

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 5,122.1 to Rs 12,176.7, registering a gain of Rs 7,054.6 or around 137.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 63,784.2 (down 0.1%). Over the last one year it has moved up from 46,206.3 to 63,784.2, a gain of 17,578 points (up 38.0%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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