DWARIKESH SUGAR 2023-24 Annual Report Analysis

Wed, 5 Jun

DWARIKESH SUGAR 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.

DWARIKESH SUGAR Income Statement Analysis

• Operating income during the year fell 18.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.0% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 4.5% and finance costs decreased by 22.1% YoY, respectively.
• Other income declined by 16.9% YoY.
• Net profit for the year declined by 20.3% YoY.
• Net profit margins during the year declined from 5.0% in FY23 to 4.9% in FY24.

DWARIKESH SUGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,030	17,096	-18.7%
Other income	Rs m	140	117	-16.9%
Total Revenues	Rs m	21,170	17,212	-18.7%
Gross profit	Rs m	2,145	2,049	-4.5%
Depreciation	Rs m	502	525	4.5%
Interest	Rs m	258	201	-22.1%
Profit before tax	Rs m	1,525	1,440	-5.6%
Tax	Rs m	478	605	26.6%
Profit after tax	Rs m	1,047	835	-20.3%
Gross profit margin	%	10.2	12.0
Effective tax rate	%	31.3	42.0
Net profit margin	%	5.0	4.9

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

DWARIKESH SUGAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 25.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 31.3%.
• Current assets rose 19% and stood at Rs 8 billion, while fixed assets rose 4% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 12%.

DWARIKESH SUGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,397	8,221	11.1
Current Liabilities	Rs m	3,209	4,037	25.8
Long-term Debt	Rs m	2,142	1,472	-31.3
Total Liabilities	Rs m	13,734	15,374	11.9
Current assets	Rs m	7,084	8,459	19.4
Fixed Assets	Rs m	6,650	6,915	4.0
Total Assets	Rs m	13,734	15,374	11.9

DWARIKESH SUGAR Cash Flow Statement Analysis

• DWARIKESH SUGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 134 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -407 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 272 million, an improvement of 112% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs 4 million net cash flows seen during FY23.

DWARIKESH SUGAR 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	3,139	134	-95.7%
Cash Flow from Investing Activities	Rs m	-915	-407	-
Cash Flow from Financing Activities	Rs m	-2,219	272	-
Net Cash Flow	Rs m	4	-1	-

Current Valuations for DWARIKESH SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an decline from the EPS of Rs 5.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 65.9, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.3 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	111.7	90.8
TTM Earnings per share	Rs	5.6	4.4
Diluted earnings per share	Rs	5.7	4.5
Price to Cash Flow	x	10.2	12.3
TTM P/E ratio	x	15.1	14.6
Price / Book Value ratio	x	2.9	2.0
Market Cap	Rs m	21,509	16,708
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for DWARIKESH SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.2x 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 8.2x during FY24, from 6.9x 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 10.2% during FY24, from 14.2% 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 16.9% during FY24, from 18.7% 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 6.7% during FY24, from 9.5% 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	2.2	2.1
Debtors’ Days	Days	124	76
Interest coverage	x	6.9	8.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.5	6.7
Return on equity	%	14.2	10.2
Return on capital employed	%	18.7	16.9

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

DWARIKESH SUGAR Share Price Performance

Over the last one year, DWARIKESH SUGAR share price has moved down from Rs 90.1 to Rs 65.9, registering a loss of Rs 24.2 or around 26.8%.

Overall, the S&P BSE SENSEX is up 14.8% over the year.

(To know more, check out historical annual results for DWARIKESH SUGAR and quarterly results for DWARIKESH SUGAR)