DREAMFOLKS SERVICES 2023-24 Annual Report Analysis

Mon, 9 Sep

DREAMFOLKS SERVICES 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.

DREAMFOLKS SERVICES Income Statement Analysis

• Operating income during the year rose 46.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY24 as against 12.8% in FY23.
• Depreciation charges increased by 5.8% and finance costs decreased by 8.9% YoY, respectively.
• Other income grew by 0.9% YoY.
• Net profit for the year declined by 5.4% YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 6.0% in FY24.

DREAMFOLKS SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,733	11,350	46.8%
Other income	Rs m	33	33	0.9%
Total Revenues	Rs m	7,765	11,383	46.6%
Gross profit	Rs m	989	940	-5.0%
Depreciation	Rs m	35	37	5.8%
Interest	Rs m	13	12	-8.9%
Profit before tax	Rs m	974	925	-5.1%
Tax	Rs m	249	238	-4.4%
Profit after tax	Rs m	725	686	-5.4%
Gross profit margin	%	12.8	8.3
Effective tax rate	%	25.6	25.8
Net profit margin	%	9.4	6.0

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

DREAMFOLKS SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 9.2%.
• Long-term debt down at Rs 2 million as compared to Rs 9 million during FY23, a fall of 75.9%.
• Current assets rose 29% and stood at Rs 4 billion, while fixed assets fell 12% and stood at Rs 164 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 27%.

DREAMFOLKS SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,531	2,281	49.0
Current Liabilities	Rs m	1,822	1,989	9.2
Long-term Debt	Rs m	9	2	-75.9
Total Liabilities	Rs m	3,463	4,399	27.0
Current assets	Rs m	3,278	4,236	29.2
Fixed Assets	Rs m	186	164	-11.7
Total Assets	Rs m	3,463	4,399	27.0

DREAMFOLKS SERVICES Cash Flow Statement Analysis

• DREAMFOLKS SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs 219 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -150 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 25 million, an improvement of 220% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 94 million from the Rs 179 million net cash flows seen during FY23.

DREAMFOLKS SERVICES 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	496	219	-55.8%
Cash Flow from Investing Activities	Rs m	-302	-150	-
Cash Flow from Financing Activities	Rs m	-21	25	-
Net Cash Flow	Rs m	179	94	-47.2%

Current Valuations for DREAMFOLKS SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.9, an decline from the EPS of Rs 13.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 493.7, stands at 36.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 46.4 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	148.0	214.0
TTM Earnings per share	Rs	13.9	12.9
Diluted earnings per share	Rs	13.7	12.9
Price to Cash Flow	x	30.1	46.4
TTM P/E ratio	x	31.6	36.0
Price / Book Value ratio	x	15.3	14.7
Market Cap	Rs m	23,465	33,600
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for DREAMFOLKS SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.8x 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 79.9x during FY24, from 76.8x 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 30.1% during FY24, from 47.4% 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 41.0% during FY24, from 64.1% 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 15.9% during FY24, from 21.3% 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	1.8	2.1
Debtors’ Days	Days	95	85
Interest coverage	x	76.8	79.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.3	15.9
Return on equity	%	47.4	30.1
Return on capital employed	%	64.1	41.0

To see how DREAMFOLKS SERVICES has performed over the last 5 years, please visit here.

DREAMFOLKS SERVICES Share Price Performance

Over the last one year, DREAMFOLKS SERVICES share price has moved down from Rs 507.4 to Rs 493.7, registering a loss of Rs 13.7 or around 2.7%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for DREAMFOLKS SERVICES and quarterly results for DREAMFOLKS SERVICES)