DP WIRES 2023-24 Annual Report Analysis

Thu, 26 Sep

DP WIRES 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.

DP WIRES Income Statement Analysis

• Operating income during the year fell 17.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.0% in FY24 as against 4.6% in FY23.
• Depreciation charges increased by 16.8% and finance costs increased by 46.0% YoY, respectively.
• Other income declined by 1.0% YoY.
• Net profit for the year declined by 11.5% YoY.
• Net profit margins during the year grew from 3.4% in FY23 to 3.6% in FY24.

DP WIRES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,160	10,031	-17.5%
Other income	Rs m	53	53	-1.0%
Total Revenues	Rs m	12,213	10,083	-17.4%
Gross profit	Rs m	555	505	-9.0%
Depreciation	Rs m	35	40	16.8%
Interest	Rs m	20	29	46.0%
Profit before tax	Rs m	553	488	-11.9%
Tax	Rs m	143	124	-13.1%
Profit after tax	Rs m	410	363	-11.5%
Gross profit margin	%	4.6	5.0
Effective tax rate	%	25.9	25.5
Net profit margin	%	3.4	3.6

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DP WIRES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 352 million as compared to Rs 589 million in FY23, thereby witnessing an decrease of -40.3%.
• Long-term debt down at Rs 6 million as compared to Rs 7 million during FY23, a fall of 22.4%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 358 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 4%.

DP WIRES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,915	2,262	18.1
Current Liabilities	Rs m	589	352	-40.3
Long-term Debt	Rs m	7	6	-22.4
Total Liabilities	Rs m	2,513	2,621	4.3
Current assets	Rs m	2,173	2,263	4.1
Fixed Assets	Rs m	340	358	5.2
Total Assets	Rs m	2,513	2,621	4.3

DP WIRES Cash Flow Statement Analysis

• DP WIRES's cash flow from operating activities (CFO) during FY24 stood at Rs 236 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -45 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -57 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 134 million from the Rs 247 million net cash flows seen during FY23.

DP WIRES 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	455	236	-48.3%
Cash Flow from Investing Activities	Rs m	-61	-45	-
Cash Flow from Financing Activities	Rs m	-148	-57	-
Net Cash Flow	Rs m	247	134	-45.8%

Current Valuations for DP WIRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.4, an decline from the EPS of Rs 30.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 416.0, stands at 19.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 21.9 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	896.1	647.1
TTM Earnings per share	Rs	30.2	23.4
Diluted earnings per share	Rs	26.5	23.4
Price to Cash Flow	x	0.0	21.9
TTM P/E ratio	x	0.0	19.9
Price / Book Value ratio	x	0.0	3.9
Market Cap	Rs m	0	8,824
Dividends per share (Unadj.)	Rs	1.2	0.0

Ratio Analysis for DP WIRES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.4x during FY24, from 3.7x 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 17.6x during FY24, from 28.5x 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 16.1% during FY24, from 21.4% 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 22.8% during FY24, from 29.8% 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 15.0% during FY24, from 17.1% 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	3.7	6.4
Debtors’ Days	Days	261	358
Interest coverage	x	28.5	17.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	15.0
Return on equity	%	21.4	16.1
Return on capital employed	%	29.8	22.8

To see how DP WIRES has performed over the last 5 years, please visit here.

DP WIRES Share Price Performance

Over the last one year, DP WIRES share price has moved down from Rs 646.5 to Rs 416.0, registering a loss of Rs 230.5 or around 35.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,581.4 (up 1.1%). Over the last one year it has moved up from 22,801.3 to 33,581.4, a gain of 10,780 points (up 47.3%).

Overall, the S&P BSE SENSEX is up 29.3% over the year.

(To know more, check out historical annual results for DP WIRES and quarterly results for DP WIRES)