DYNACONS SYSTEMS & SOLUTIONS 2023-24 Annual Report Analysis

Thu, 28 Nov

DYNACONS SYSTEMS & SOLUTIONS 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.

DYNACONS SYSTEMS & SOLUTIONS Income Statement Analysis

• Operating income during the year rose 27.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.6% in FY24 as against 6.8% in FY23.
• Depreciation charges increased by 11.4% and finance costs decreased by 18.8% YoY, respectively.
• Other income grew by 90.9% YoY.
• Net profit for the year grew by 60.9% YoY.
• Net profit margins during the year grew from 4.2% in FY23 to 5.3% in FY24.

DYNACONS SYSTEMS & SOLUTIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,045	10,245	27.3%
Other income	Rs m	23	44	90.9%
Total Revenues	Rs m	8,068	10,288	27.5%
Gross profit	Rs m	547	781	42.8%
Depreciation	Rs m	14	15	11.4%
Interest	Rs m	109	89	-18.8%
Profit before tax	Rs m	447	721	61.3%
Tax	Rs m	112	182	62.5%
Profit after tax	Rs m	335	538	60.9%
Gross profit margin	%	6.8	7.6
Effective tax rate	%	25.1	25.3
Net profit margin	%	4.2	5.3

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DYNACONS SYSTEMS & SOLUTIONS 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 50.0%.
• Long-term debt down at Rs 95 million as compared to Rs 160 million during FY23, a fall of 40.7%.
• Current assets rose 47% and stood at Rs 6 billion, while fixed assets rose 3% and stood at Rs 92 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 46%.

DYNACONS SYSTEMS & SOLUTIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,038	1,573	51.5
Current Liabilities	Rs m	2,766	4,148	50.0
Long-term Debt	Rs m	160	95	-40.7
Total Liabilities	Rs m	4,022	5,868	45.9
Current assets	Rs m	3,933	5,776	46.9
Fixed Assets	Rs m	89	92	3.2
Total Assets	Rs m	4,022	5,868	45.9

DYNACONS SYSTEMS & SOLUTIONS Cash Flow Statement Analysis

• DYNACONS SYSTEMS & SOLUTIONS's cash flow from operating activities (CFO) during FY24 stood at Rs 292 million, an improvement of 122.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 million, an improvement of 79.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -421 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -134 million from the Rs 75 million net cash flows seen during FY23.

DYNACONS SYSTEMS & SOLUTIONS 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	131	292	122.8%
Cash Flow from Investing Activities	Rs m	-3	-5	-
Cash Flow from Financing Activities	Rs m	-54	-421	-
Net Cash Flow	Rs m	75	-134	-

Current Valuations for DYNACONS SYSTEMS & SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.3, an improvement from the EPS of Rs 26.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,354.6, stands at 27.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 16.2 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	633.9	806.0
TTM Earnings per share	Rs	26.4	42.3
Diluted earnings per share	Rs	26.3	42.3
Price to Cash Flow	x	11.4	16.2
TTM P/E ratio	x	11.8	27.3
Price / Book Value ratio	x	4.7	5.7
Market Cap	Rs m	4,833	8,972
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for DYNACONS SYSTEMS & SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.4x 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 9.1x during FY24, from 5.1x 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 34.2% during FY24, from 32.2% 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 improved and stood at 48.5% during FY24, from 46.4% 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 10.7% during FY24, from 11.0% 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	1.4	1.4
Debtors’ Days	Days	1,366	1,431
Interest coverage	x	5.1	9.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	11.0	10.7
Return on equity	%	32.2	34.2
Return on capital employed	%	46.4	48.5

To see how DYNACONS SYSTEMS & SOLUTIONS has performed over the last 5 years, please visit here.

DYNACONS SYSTEMS & SOLUTIONS Share Price Performance

Over the last one year, DYNACONS SYSTEMS & SOLUTIONS share price has moved up from Rs 645.9 to Rs 1,354.6, registering a gain of Rs 708.7 or around 109.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,858.3 (down 1.8%). Over the last one year it has moved up from 32,787.7 to 42,858.3, a gain of 10,071 points (up 30.7%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for DYNACONS SYSTEMS & SOLUTIONS and quarterly results for DYNACONS SYSTEMS & SOLUTIONS)