DUTRON POLY. 2022-23 Annual Report Analysis

Tue, 20 Jun

DUTRON POLY. 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.

DUTRON POLY. Income Statement Analysis

• Operating income during the year rose 5.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.3% in FY23 as against 4.4% in FY22.
• Depreciation charges decreased by 1.2% and finance costs increased by 18.0% YoY, respectively.
• Other income declined by 26.7% YoY.
• Net profit for the year declined by 11.0% YoY.
• Net profit margins during the year declined from 2.3% in FY22 to 2.0% in FY23.

DUTRON POLY. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,246	1,319	5.9%
Other income	Rs m	4	3	-26.7%
Total Revenues	Rs m	1,250	1,322	5.8%
Gross profit	Rs m	55	57	4.1%
Depreciation	Rs m	12	12	-1.2%
Interest	Rs m	11	13	18.0%
Profit before tax	Rs m	36	36	-1.6%
Tax	Rs m	7	10	35.2%
Profit after tax	Rs m	29	26	-11.0%
Gross profit margin	%	4.4	4.3
Effective tax rate	%	20.4	28.0
Net profit margin	%	2.3	2.0

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DUTRON POLY. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 39 million as compared to Rs 48 million in FY22, thereby witnessing an decrease of -18.1%.
• Long-term debt down at Rs 96 million as compared to Rs 134 million during FY22, a fall of 27.9%.
• Current assets fell 12% and stood at Rs 271 million, while fixed assets rose 10% and stood at Rs 126 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 397 million as against Rs 424 million during FY22, thereby witnessing a fall of 6%.

DUTRON POLY. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	230	249	8.0
Current Liabilities	Rs m	48	39	-18.1
Long-term Debt	Rs m	134	96	-27.9
Total Liabilities	Rs m	424	397	-6.3
Current assets	Rs m	309	271	-12.3
Fixed Assets	Rs m	115	126	10.0
Total Assets	Rs m	424	397	-6.3

DUTRON POLY. Cash Flow Statement Analysis

• DUTRON POLY.'s cash flow from operating activities (CFO) during FY23 stood at Rs 82 million, an improvement of 448.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -75 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs -15 million net cash flows seen during FY22.

DUTRON POLY. 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	15	82	448.2%
Cash Flow from Investing Activities	Rs m	-6	-5	-
Cash Flow from Financing Activities	Rs m	-25	-75	-
Net Cash Flow	Rs m	-15	2	-

Current Valuations for DUTRON POLY.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an decline from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 134.5, stands at 31.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 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	207.6	219.8
TTM Earnings per share	Rs	4.8	4.3
Diluted earnings per share	Rs	4.8	4.3
Price to Cash Flow	x	19.8	20.9
TTM P/E ratio	x	27.9	31.3
Price / Book Value ratio	x	5.2	3.1
Market Cap	Rs m	1,198	782
Dividends per share (Unadj.)	Rs	1.4	1.4

Ratio Analysis for DUTRON POLY.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.9x during FY23, from 6.4x 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 deteriorated and stood at 3.9x during FY23, from 4.4x 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 declined and down at 10.4% 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 14.0% during FY23, from 12.9% 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 9.7% during FY23, from 9.4% 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	6.4	6.9
Debtors’ Days	Days	537	311
Interest coverage	x	4.4	3.9
Debt to equity ratio	x	0.6	0.4
Return on assets	%	9.4	9.7
Return on equity	%	12.6	10.4
Return on capital employed	%	12.9	14.0

To see how DUTRON POLY. has performed over the last 5 years, please visit here.

DUTRON POLY. Share Price Performance

Over the last one year, DUTRON POLY. share price has moved up from Rs 117.8 to Rs 134.5, registering a gain of Rs 16.7 or around 14.2%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for DUTRON POLY. and quarterly results for DUTRON POLY.)