DALMIA BHARAT SUG. 2023-24 Annual Report Analysis

Thu, 20 Jun

DALMIA BHARAT SUG. 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.

DALMIA BHARAT SUG. Income Statement Analysis

• Operating income during the year fell 10.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.2% in FY24 as against 13.4% in FY23.
• Depreciation charges increased by 4.7% and finance costs increased by 32.9% YoY, respectively.
• Other income grew by 70.2% YoY.
• Net profit for the year grew by 9.7% YoY.
• Net profit margins during the year grew from 7.6% in FY23 to 9.4% in FY24.

DALMIA BHARAT SUG. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	32,521	28,994	-10.8%
Other income	Rs m	756	1,286	70.2%
Total Revenues	Rs m	33,277	30,280	-9.0%
Gross profit	Rs m	4,365	4,119	-5.7%
Depreciation	Rs m	1,213	1,270	4.7%
Interest	Rs m	377	501	32.9%
Profit before tax	Rs m	3,532	3,634	2.9%
Tax	Rs m	1,049	909	-13.3%
Profit after tax	Rs m	2,483	2,725	9.7%
Gross profit margin	%	13.4	14.2
Effective tax rate	%	29.7	25.0
Net profit margin	%	7.6	9.4

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DALMIA BHARAT SUG. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 16 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 211.7%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY23, a growth of 3.7%.
• Current assets rose 78% and stood at Rs 25 billion, while fixed assets rose 9% and stood at Rs 29 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 54 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 33%.

DALMIA BHARAT SUG. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	27,050	29,322	8.4
Current Liabilities	Rs m	5,134	16,002	211.7
Long-term Debt	Rs m	3,257	3,378	3.7
Total Liabilities	Rs m	40,791	54,131	32.7
Current assets	Rs m	14,001	24,878	77.7
Fixed Assets	Rs m	26,790	29,253	9.2
Total Assets	Rs m	40,791	54,131	32.7

DALMIA BHARAT SUG. Cash Flow Statement Analysis

• DALMIA BHARAT SUG.'s cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 33.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 9 billion, an improvement of 315% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 billion from the Rs -288 million net cash flows seen during FY23.

DALMIA BHARAT SUG. 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	5,829	-2,393	-
Cash Flow from Investing Activities	Rs m	-1,922	-2,574	-
Cash Flow from Financing Activities	Rs m	-4,195	9,015	-
Net Cash Flow	Rs m	-288	4,049	-

Current Valuations for DALMIA BHARAT SUG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.7, an improvement from the EPS of Rs 30.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 433.0, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 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	401.8	358.2
TTM Earnings per share	Rs	30.7	33.7
Diluted earnings per share	Rs	30.7	33.7
Price to Cash Flow	x	7.4	8.4
TTM P/E ratio	x	11.0	12.9
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	34,430	33,547
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for DALMIA BHARAT SUG.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 2.7x 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 deteriorated and stood at 8.3x during FY24, from 10.4x 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 9.3% during FY24, from 9.2% 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 declined and down at 12.6% during FY24, from 12.9% 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 6.0% during FY24, from 7.0% 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	2.7	1.6
Debtors’ Days	Days	2	2
Interest coverage	x	10.4	8.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.0	6.0
Return on equity	%	9.2	9.3
Return on capital employed	%	12.9	12.6

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 366.3 to Rs 433.0, registering a gain of Rs 66.8 or around 18.2%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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