DHAMPUR BIO ORGANICS 2023-24 Annual Report Analysis

Thu, 13 Jun

DHAMPUR BIO ORGANICS 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.

DHAMPUR BIO ORGANICS Income Statement Analysis

• Operating income during the year fell 39.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY24 as against 9.5% in FY23.
• Depreciation charges increased by 22.0% and finance costs increased by 10.8% YoY, respectively.
• Other income grew by 107.7% YoY.
• Net profit for the year declined by 56.1% YoY.
• Net profit margins during the year declined from 5.1% in FY23 to 3.8% in FY24.

DHAMPUR BIO ORGANICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,606	13,012	-39.8%
Other income	Rs m	114	237	107.7%
Total Revenues	Rs m	21,720	13,249	-39.0%
Gross profit	Rs m	2,047	1,379	-32.6%
Depreciation	Rs m	405	495	22.0%
Interest	Rs m	408	453	10.8%
Profit before tax	Rs m	1,348	669	-50.4%
Tax	Rs m	237	181	-23.7%
Profit after tax	Rs m	1,111	488	-56.1%
Gross profit margin	%	9.5	10.6
Effective tax rate	%	17.6	27.0
Net profit margin	%	5.1	3.8

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DHAMPUR BIO ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 20.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 4.9%.
• Current assets rose 8% and stood at Rs 12 billion, while fixed assets rose 14% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 11%.

DHAMPUR BIO ORGANICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,887	10,207	3.2
Current Liabilities	Rs m	8,814	10,634	20.6
Long-term Debt	Rs m	1,687	1,770	4.9
Total Liabilities	Rs m	20,999	23,252	10.7
Current assets	Rs m	11,473	12,359	7.7
Fixed Assets	Rs m	9,526	10,894	14.4
Total Assets	Rs m	20,999	23,252	10.7

DHAMPUR BIO ORGANICS Cash Flow Statement Analysis

• DHAMPUR BIO ORGANICS's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 317% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -960 million from the Rs 811 million net cash flows seen during FY23.

DHAMPUR BIO ORGANICS 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	3,681	-1,222	-
Cash Flow from Investing Activities	Rs m	-2,089	-1,435	-
Cash Flow from Financing Activities	Rs m	-781	1,696	-
Net Cash Flow	Rs m	811	-960	-

Current Valuations for DHAMPUR BIO ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 154.1, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	325.4	196.0
TTM Earnings per share	Rs	16.7	7.4
Diluted earnings per share	Rs	16.7	7.4
Price to Cash Flow	x	6.3	10.3
TTM P/E ratio	x	8.6	22.0
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	11,425	10,159
Dividends per share (Unadj.)	Rs	3.5	2.5

Ratio Analysis for DHAMPUR BIO ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 2.5x during FY24, from 4.3x 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 4.8% during FY24, from 11.2% 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 9.4% during FY24, from 15.2% 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 4.0% during FY24, from 7.2% 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	1.3	1.2
Debtors’ Days	Days	3	2
Interest coverage	x	4.3	2.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.2	4.0
Return on equity	%	11.2	4.8
Return on capital employed	%	15.2	9.4

To see how DHAMPUR BIO ORGANICS has performed over the last 5 years, please visit here.

DHAMPUR BIO ORGANICS Share Price Performance

Over the last one year, DHAMPUR BIO ORGANICS share price has moved down from Rs 171.2 to Rs 154.1, registering a loss of Rs 17.1 or around 10.0%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for DHAMPUR BIO ORGANICS and quarterly results for DHAMPUR BIO ORGANICS)