D-LINK (INDIA) 2023-24 Annual Report Analysis

Wed, 10 Jul

D-LINK (INDIA) 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.

D-LINK (INDIA) Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.5% in FY24 as against 9.7% in FY23.
• Depreciation charges increased by 27.0% and finance costs decreased by 2.5% YoY, respectively.
• Other income grew by 96.8% YoY.
• Net profit for the year grew by 7.3% YoY.
• Net profit margins during the year grew from 7.3% in FY23 to 7.5% in FY24.

D-LINK (INDIA) Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,806	12,357	4.7%
Other income	Rs m	72	141	96.8%
Total Revenues	Rs m	11,878	12,498	5.2%
Gross profit	Rs m	1,150	1,174	2.1%
Depreciation	Rs m	50	63	27.0%
Interest	Rs m	10	10	-2.5%
Profit before tax	Rs m	1,161	1,242	6.9%
Tax	Rs m	298	316	6.0%
Profit after tax	Rs m	864	926	7.3%
Gross profit margin	%	9.7	9.5
Effective tax rate	%	25.6	25.4
Net profit margin	%	7.3	7.5

Don't Miss: Key Information for Long-term Investors

D-LINK (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 14.0%.
• Current assets rose 15% and stood at Rs 8 billion, while fixed assets fell 2% and stood at Rs 676 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 13%.

D-LINK (INDIA) Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,784	4,352	15.0
Current Liabilities	Rs m	3,159	3,602	14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,215	8,182	13.4
Current assets	Rs m	6,525	7,506	15.0
Fixed Assets	Rs m	690	676	-2.0
Total Assets	Rs m	7,215	8,182	13.4

D-LINK (INDIA) Cash Flow Statement Analysis

• D-LINK (INDIA)'s cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 1,945.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -667 million, an improvement of 1,226.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -414 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 124 million from the Rs -146 million net cash flows seen during FY23.

D-LINK (INDIA) 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	59	1,205	1,945.4%
Cash Flow from Investing Activities	Rs m	-50	-667	-
Cash Flow from Financing Activities	Rs m	-154	-414	-
Net Cash Flow	Rs m	-146	124	-

Current Valuations for D-LINK (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.1, an improvement from the EPS of Rs 24.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 636.5, stands at 24.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.6 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	332.6	348.1
TTM Earnings per share	Rs	24.3	26.1
Diluted earnings per share	Rs	24.3	26.1
Price to Cash Flow	x	9.1	10.6
TTM P/E ratio	x	9.6	24.4
Price / Book Value ratio	x	2.0	2.4
Market Cap	Rs m	7,389	10,461
Dividends per share (Unadj.)	Rs	10.0	13.0

Ratio Analysis for D-LINK (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 2.1x 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 126.2x during FY24, from 115.2x 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 declined and down at 21.3% during FY24, from 22.8% 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 28.8% during FY24, from 31.0% 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 11.4% during FY24, from 12.1% 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	2.1	2.1
Debtors’ Days	Days	942	1,002
Interest coverage	x	115.2	126.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.1	11.4
Return on equity	%	22.8	21.3
Return on capital employed	%	31.0	28.8

To see how D-LINK (INDIA) has performed over the last 5 years, please visit here.

D-LINK (INDIA) Share Price Performance

Over the last one year, D-LINK (INDIA) share price has moved up from Rs 262.1 to Rs 636.5, registering a gain of Rs 374.5 or around 142.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 38,104.3 (down 1.0%). Over the last one year it has moved up from 29,484.7 to 38,104.3, a gain of 8,620 points (up 29.2%).

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

(To know more, check out historical annual results for D-LINK (INDIA) and quarterly results for D-LINK (INDIA))