DHUNSERI TEA 2022-23 Annual Report Analysis

Mon, 6 Nov

DHUNSERI TEA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

DHUNSERI TEA Income Statement Analysis

• Operating income during the year fell 3.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 3.6% in FY23 as against 32.5% in FY22.
• Depreciation charges decreased by 2.0% and finance costs increased by 27.4% YoY, respectively.
• Other income declined by 81.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 27.0% in FY22 to 7.0% in FY23.

DHUNSERI TEA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,490	3,375	-3.3%
Other income	Rs m	557	106	-81.0%
Total Revenues	Rs m	4,047	3,481	-14.0%
Gross profit	Rs m	-1,133	-122	NA
Depreciation	Rs m	194	190	-2.0%
Interest	Rs m	72	92	27.4%
Profit before tax	Rs m	-842	-299	NA
Tax	Rs m	100	-61	NA
Profit after tax	Rs m	-942	-238	NA
Gross profit margin	%	-32.5	-3.6
Effective tax rate	%	-11.9	20.4
Net profit margin	%	-27.0	-7.0

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DHUNSERI TEA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 61.7%.
• Long-term debt stood at Rs 487 million as compared to Rs 247 million during FY22, a growth of 96.7%.
• Current assets fell 24% and stood at Rs 2 billion, while fixed assets rose 19% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 8%.

DHUNSERI TEA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,485	6,971	-6.9
Current Liabilities	Rs m	1,462	2,365	61.7
Long-term Debt	Rs m	247	487	96.7
Total Liabilities	Rs m	10,428	11,226	7.6
Current assets	Rs m	2,672	2,022	-24.4
Fixed Assets	Rs m	7,756	9,204	18.7
Total Assets	Rs m	10,428	11,226	7.6

DHUNSERI TEA Cash Flow Statement Analysis

• DHUNSERI TEA's cash flow from operating activities (CFO) during FY23 stood at Rs 203 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -605 million, an improvement of 66.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 559 million, an improvement of 1,116% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 161 million from the Rs 15 million net cash flows seen during FY22.

DHUNSERI TEA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	332	203	-38.7%
Cash Flow from Investing Activities	Rs m	-363	-605	-
Cash Flow from Financing Activities	Rs m	46	559	1,116.2%
Net Cash Flow	Rs m	15	161	1,007.0%

Current Valuations for DHUNSERI TEA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.6, an improvement from the EPS of Rs -89.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 217.1, stands at -9.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at -55.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	332.1	321.1
TTM Earnings per share	Rs	-89.7	-22.6
Diluted earnings per share	Rs	-89.7	-22.6
Price to Cash Flow	x	-3.7	-55.6
TTM P/E ratio	x	-2.9	-9.3
Price / Book Value ratio	x	0.6	0.4
Market Cap	Rs m	4,337	2,638
Dividends per share (Unadj.)	Rs	4.0	3.0

Ratio Analysis for DHUNSERI TEA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.8x during FY22. 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 -2.2x during FY23, from -10.7x during FY22. 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 -3.4% during FY23, from -12.6% during FY23. 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 improved and stood at -2.8% during FY23, from -10.0% during FY22. 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 improved and stood at -1.3% during FY23, from -8.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	0.9
Debtors’ Days	Days	200	217
Interest coverage	x	-10.7	-2.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	-8.3	-1.3
Return on equity	%	-12.6	-3.4
Return on capital employed	%	-10.0	-2.8

To see how DHUNSERI TEA has performed over the last 5 years, please visit here.

DHUNSERI TEA Share Price Performance

Over the last one year, DHUNSERI TEA share price has moved up from Rs 195.3 to Rs 217.1, registering a gain of Rs 21.8 or around 11.2%.

Overall, the S&P BSE SENSEX is up 6.3% over the year.

(To know more, check out historical annual results for DHUNSERI TEA and quarterly results for DHUNSERI TEA)