DYNAMIC CABLES 2023-24 Annual Report Analysis

Wed, 10 Jul

DYNAMIC CABLES 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.

DYNAMIC CABLES Income Statement Analysis

• Operating income during the year rose 14.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.1% in FY24 as against 9.4% in FY23.
• Depreciation charges increased by 17.1% and finance costs increased by 27.8% YoY, respectively.
• Other income grew by 11.9% YoY.
• Net profit for the year grew by 21.8% YoY.
• Net profit margins during the year grew from 4.6% in FY23 to 4.9% in FY24.

DYNAMIC CABLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,686	7,680	14.9%
Other income	Rs m	31	35	11.9%
Total Revenues	Rs m	6,717	7,715	14.8%
Gross profit	Rs m	628	773	23.1%
Depreciation	Rs m	79	93	17.1%
Interest	Rs m	162	207	27.8%
Profit before tax	Rs m	418	508	21.6%
Tax	Rs m	107	130	21.0%
Profit after tax	Rs m	310	378	21.8%
Gross profit margin	%	9.4	10.1
Effective tax rate	%	25.7	25.6
Net profit margin	%	4.6	4.9

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DYNAMIC CABLES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 30.1%.
• Long-term debt down at Rs 56 million as compared to Rs 113 million during FY23, a fall of 50.3%.
• Current assets rose 24% and stood at Rs 4 billion, while fixed assets rose 19% and stood at Rs 719 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 24%.

DYNAMIC CABLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,774	2,140	20.6
Current Liabilities	Rs m	2,128	2,769	30.1
Long-term Debt	Rs m	113	56	-50.3
Total Liabilities	Rs m	4,033	4,982	23.5
Current assets	Rs m	3,427	4,264	24.4
Fixed Assets	Rs m	606	719	18.5
Total Assets	Rs m	4,033	4,982	23.5

DYNAMIC CABLES Cash Flow Statement Analysis

• DYNAMIC CABLES's cash flow from operating activities (CFO) during FY24 stood at Rs 13 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -164 million, an improvement of 3.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 153 million, an improvement of 233% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs 0 million net cash flows seen during FY23.

DYNAMIC CABLES 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	274	13	-95.4%
Cash Flow from Investing Activities	Rs m	-159	-164	-
Cash Flow from Financing Activities	Rs m	-115	153	-
Net Cash Flow	Rs m	0	1	123.9%

Current Valuations for DYNAMIC CABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an improvement from the EPS of Rs 14.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 580.0, stands at 37.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 18.3 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	303.8	348.9
TTM Earnings per share	Rs	14.1	17.2
Diluted earnings per share	Rs	12.8	15.6
Price to Cash Flow	x	10.4	18.3
TTM P/E ratio	x	13.1	37.2
Price / Book Value ratio	x	2.0	4.0
Market Cap	Rs m	3,506	8,615
Dividends per share (Unadj.)	Rs	78.8	27.4

Ratio Analysis for DYNAMIC CABLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.6x 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 deteriorated and stood at 3.4x during FY24, from 3.6x 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 improved and stood at 17.7% during FY24, from 17.5% 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 improved and stood at 32.6% during FY24, from 30.7% 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 improved and stood at 11.7% during FY24, from 11.7% 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	1.6	1.5
Debtors’ Days	Days	1,125	1,213
Interest coverage	x	3.6	3.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.7	11.7
Return on equity	%	17.5	17.7
Return on capital employed	%	30.7	32.6

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

DYNAMIC CABLES Share Price Performance

Over the last one year, DYNAMIC CABLES share price has moved up from Rs 353.0 to Rs 580.0, registering a gain of Rs 227.0 or around 64.3%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for DYNAMIC CABLES and quarterly results for DYNAMIC CABLES)