DYNAMATIC TECH 2023-24 Annual Report Analysis

Fri, 16 Aug

DYNAMATIC TECH 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.

DYNAMATIC TECH Income Statement Analysis

• Operating income during the year rose 8.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY24 as against 14.0% in FY23.
• Depreciation charges decreased by 5.8% and finance costs decreased by 4.7% YoY, respectively.
• Other income grew by 338.7% YoY.
• Net profit for the year grew by 184.7% YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 8.5% in FY24.

DYNAMATIC TECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,158	14,293	8.6%
Other income	Rs m	98	428	338.7%
Total Revenues	Rs m	13,255	14,722	11.1%
Gross profit	Rs m	1,837	2,238	21.8%
Depreciation	Rs m	704	664	-5.8%
Interest	Rs m	679	647	-4.7%
Profit before tax	Rs m	552	1,356	145.6%
Tax	Rs m	124	138	11.2%
Profit after tax	Rs m	428	1,218	184.7%
Gross profit margin	%	14.0	15.7
Effective tax rate	%	22.5	10.2
Net profit margin	%	3.3	8.5

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DYNAMATIC TECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -23.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 14.2%.
• Current assets fell 9% and stood at Rs 8 billion, while fixed assets rose 4% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 17 billion during FY23, thereby witnessing a fall of 6%.

DYNAMATIC TECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,420	6,677	23.2
Current Liabilities	Rs m	7,534	5,766	-23.5
Long-term Debt	Rs m	2,253	1,932	-14.2
Total Liabilities	Rs m	16,688	15,723	-5.8
Current assets	Rs m	8,276	7,548	-8.8
Fixed Assets	Rs m	7,856	8,174	4.0
Total Assets	Rs m	16,688	15,723	-5.8

DYNAMATIC TECH Cash Flow Statement Analysis

• DYNAMATIC TECH's cash flow from operating activities (CFO) during FY24 stood at Rs 973 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 462 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -870 million from the Rs 1 billion net cash flows seen during FY23.

DYNAMATIC TECH 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	1,310	973	-25.7%
Cash Flow from Investing Activities	Rs m	-830	462	-
Cash Flow from Financing Activities	Rs m	723	-2,311	-
Net Cash Flow	Rs m	1,206	-870	-

Current Valuations for DYNAMATIC TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 179.4, an improvement from the EPS of Rs 63.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,799.4, stands at 50.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	1,937.8	2,105.1
TTM Earnings per share	Rs	63.0	179.4
Diluted earnings per share	Rs	63.0	179.4
Price to Cash Flow	x	16.5	19.0
TTM P/E ratio	x	43.8	50.3
Price / Book Value ratio	x	2.9	5.4
Market Cap	Rs m	15,634	35,811
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for DYNAMATIC TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.1x 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 3.1x during FY24, from 1.8x 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 18.2% during FY24, from 7.9% 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 23.3% during FY24, from 16.0% 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 11.9% during FY24, from 6.6% 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	1.1	1.3
Debtors’ Days	Days	715	763
Interest coverage	x	1.8	3.1
Debt to equity ratio	x	0.4	0.3
Return on assets	%	6.6	11.9
Return on equity	%	7.9	18.2
Return on capital employed	%	16.0	23.3

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

DYNAMATIC TECH Share Price Performance

Over the last one year, DYNAMATIC TECH share price has moved up from Rs 3,899.7 to Rs 6,799.4, registering a gain of Rs 2,899.8 or around 74.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,243.3 (up 1.0%). Over the last one year it has moved up from 43,606.6 to 72,243.3, a gain of 28,637 points (up 65.7%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for DYNAMATIC TECH and quarterly results for DYNAMATIC TECH)