DALMIA BHARAT SUG. 2020-21 Annual Report Analysis

Wed, 31 Mar

DALMIA BHARAT SUG. 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.

DALMIA BHARAT SUG. Income Statement Analysis

• Operating income during the year rose 27.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY21 as against 15.9% in FY20.
• Depreciation charges increased by 67.0% and finance costs decreased by 30.0% YoY, respectively.
• Other income declined by 4.5% YoY.
• Net profit for the year grew by 39.9% YoY.
• Net profit margins during the year grew from 9.2% in FY20 to 10.1% in FY21.

DALMIA BHARAT SUG. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,108	26,858	27.2%
Other income	Rs m	565	539	-4.5%
Total Revenues	Rs m	21,673	27,397	26.4%
Gross profit	Rs m	3,366	4,714	40.0%
Depreciation	Rs m	572	956	67.0%
Interest	Rs m	884	619	-30.0%
Profit before tax	Rs m	2,475	3,679	48.7%
Tax	Rs m	543	976	79.8%
Profit after tax	Rs m	1,932	2,703	39.9%
Gross profit margin	%	15.9	17.6
Effective tax rate	%	21.9	26.5
Net profit margin	%	9.2	10.1

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DALMIA BHARAT SUG. Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 13 billion in FY20, thereby witnessing an decrease of -12.8%.
• Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY20, a fall of 46.6%.
• Current assets rose 5% and stood at Rs 20 billion, while fixed assets rose 13% and stood at Rs 19 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 39 billion as against Rs 36 billion during FY20, thereby witnessing a growth of 9%.

DALMIA BHARAT SUG. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,188	21,427	41.1
Current Liabilities	Rs m	13,478	11,750	-12.8
Long-term Debt	Rs m	4,244	2,266	-46.6
Total Liabilities	Rs m	35,700	38,925	9.0
Current assets	Rs m	19,304	20,355	5.4
Fixed Assets	Rs m	16,396	18,570	13.3
Total Assets	Rs m	35,700	38,925	9.0

DALMIA BHARAT SUG. Cash Flow Statement Analysis

• DALMIA BHARAT SUG.'s cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 486.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 371 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 183 million from the Rs 250 million net cash flows seen during FY20.

DALMIA BHARAT SUG. 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	590	3,455	486.0%
Cash Flow from Investing Activities	Rs m	-1,793	371	-
Cash Flow from Financing Activities	Rs m	1,453	-3,644	-
Net Cash Flow	Rs m	250	183	-26.8%

Current Valuations for DALMIA BHARAT SUG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.4, an improvement from the EPS of Rs 23.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.6, stands at 5.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 2.7 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	260.8	331.8
TTM Earnings per share	Rs	23.9	33.4
Diluted earnings per share	Rs	23.9	33.4
Price to Cash Flow	x	1.6	2.7
TTM P/E ratio	x	2.0	5.6
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	7,064	9,725
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for DALMIA BHARAT SUG.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.4x 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 6.9x during FY21, from 3.8x 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 12.6% during FY21, from 12.7% 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 improved and stood at 18.1% during FY21, from 17.3% 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 improved and stood at 8.5% during FY21, from 7.9% 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	1.4	1.7
Debtors’ Days	Days	3	2
Interest coverage	x	3.8	6.9
Debt to equity ratio	x	0.3	0.1
Return on assets	%	7.9	8.5
Return on equity	%	12.7	12.6
Return on capital employed	%	17.3	18.1

To see how DALMIA BHARAT SUG. has performed over the last 5 years, please visit here.

DALMIA BHARAT SUG. Share Price Performance

Over the last one year, DALMIA BHARAT SUG. share price has moved up from Rs 48.9 to Rs 186.6, registering a gain of Rs 137.7 or around 281.5%.

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

(To know more, check out historical annual results for DALMIA BHARAT SUG. and quarterly results for DALMIA BHARAT SUG.)

Read: Latest Annual Report Analysis of DALMIA BHARAT SUG.