DHFL 2023-24 Annual Report Analysis

Mon, 8 Jul

DHFL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

DHFL Income Statement Analysis

• Interest income during the year rose 0.9% on a year-on-year (YoY) basis.
• Interest expenses were up by 5.3% YoY during the same period.
• Operating expenses declined by 18.0% YoY during the year.
• The company's net interest income (NII) decreased by 4.1% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 5.2% in FY24 as against 5.6% in FY23.
• Other income declined by 25.1% YoY during the year.
• Net profit for the year increased by 74.2% YoY.
• Net profit margins during the year increased to -28.7% in FY24 from -112.0% in FY23.

DHFL Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	66,063	66,636	0.9%
Other Income	Rs m	21,937	16,436	-25.1%
Interest Expense	Rs m	34,700	36,551	5.3%
Net Interest Income	Rs m	31,363	30,085	-4.1%
Operating Expense	Rs m	77,905	63,882	-18.0%
Pre-provision Operating Profit	Rs m	-24,604	-17,360	29.4%
Provisions & Contingencies	Rs m	65,553	129,058	96.9%
Profit before tax	Rs m	-127,935	-35,488	72.3%
Tax	Rs m	-53,922	-16,375	69.6%
Profit after tax	Rs m	-74,014	-19,114	74.2%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	5.6	5.2
Net profit margin	%	-112.0	-28.7

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

DHFL Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 484.3 bn as compared to Rs 415.6 bn during FY23, a rise of 16.5%.
• Cost of deposits for DHFL fell 43.6% and stood at 72780.0%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 98.5 bn during the year from Rs 140.9 bn in FY23.
• Borrowing stood at Rs 30.6 bn, a fall of 7.1% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 646.1 bn as against Rs 608.4 bn during FY23, thereby witnessing a rise of 6.2%.

DHFL Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	147,810	150,043	1.5%
Advances	Rs m	415,648	484,259	16.5%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	128940.0	72780.0
Investments	Rs m	140,896	98,476	-30.1%
Borrowings	Rs m	32,977	30,629	-7.1%
Total Assets	Rs m	608,351	646,148	6.2%

Current Valuations for DHFL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an improvement from the EPS of Rs -3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs {{shareprice}}, stands at 0.0 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.0 times, while the price to income ratio stands at 0.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	3.1	2.9
Earnings per share (Unadj.)	Rs	-3.5	-0.8
Diluted earnings per share	Rs	-235.8	-60.9
Avg P/E ratio	Rs	0.0	0.0
Avg P/ABV ratio	Rs	0.0	0.0
Avg Market Cap	Rs	0	0
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for DHFL

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 48,425,910.0x during FY24, from 41,564,820.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.20x during FY24, from 0.22x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): DHFL's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2024 as compared to 26.8% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at -12.7% during FY24, from -50.1% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at -2.96% during FY24, from -12.17% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 0.18% during FY24, from -15.33% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. DHFL's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of DHFL was 0.0% in financial year 2024. This compared with 1.9% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	41,564,820.0	48,425,910.0
Debt to Equity Ratio	x	0.2	0.2
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	26.8	0.0
Return on Equity	%	-50.1	-12.7
Return on Assets	%	-12.2	-3.0
Return on Capital Employed	%	-15.3	0.2
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	1.9	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

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

DHFL Share Price Performance

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Overall, the S&P BSE SENSEX is {{bsesensexupdown}} {{bsesensexchgpercabs}} over the year.

(To know more, you can check out historical annual results for DHFL here and quarterly results for DHFL here)