DHANI SERVICES 2023-24 Annual Report Analysis

Mon, 9 Sep

DHANI SERVICES 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.

DHANI SERVICES Income Statement Analysis

• Operating income during the year fell 30.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 55.3% in FY24 as against 79.0% in FY23.
• Depreciation charges decreased by 30.9% and finance costs decreased by 44.5% YoY, respectively.
• Other income declined by 75.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 79.1% in FY23 to 88.4% in FY24.

DHANI SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,085	4,228	-30.5%
Other income	Rs m	2,344	565	-75.9%
Total Revenues	Rs m	8,429	4,794	-43.1%
Gross profit	Rs m	-4,810	-2,339	NA
Depreciation	Rs m	908	627	-30.9%
Interest	Rs m	1,701	944	-44.5%
Profit before tax	Rs m	-5,076	-3,345	NA
Tax	Rs m	-263	394	NA
Profit after tax	Rs m	-4,813	-3,739	NA
Gross profit margin	%	-79.0	-55.3
Effective tax rate	%	5.2	-11.8
Net profit margin	%	-79.1	-88.4

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

DHANI SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -20.1%.
• Long-term debt down at Rs 6 billion as compared to Rs 9 billion during FY23, a fall of 30.9%.
• Current assets fell 15% and stood at Rs 29 billion, while fixed assets fell 16% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 40 billion as against Rs 48 billion during FY23, thereby witnessing a fall of 16%.

DHANI SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	37,987	34,378	-9.5
Current Liabilities	Rs m	5,283	4,220	-20.1
Long-term Debt	Rs m	8,910	6,158	-30.9
Total Liabilities	Rs m	47,747	40,243	-15.7
Current assets	Rs m	34,762	29,400	-15.4
Fixed Assets	Rs m	12,985	10,843	-16.5
Total Assets	Rs m	47,747	40,243	-15.7

DHANI SERVICES Cash Flow Statement Analysis

• DHANI SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 5 billion, an improvement of 542.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -576 million from the Rs -2 billion net cash flows seen during FY23.

DHANI SERVICES 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	8,476	-2,311	-
Cash Flow from Investing Activities	Rs m	761	4,890	542.2%
Cash Flow from Financing Activities	Rs m	-11,683	-3,179	-
Net Cash Flow	Rs m	-2,438	-576	-

Current Valuations for DHANI SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.1, an improvement from the EPS of Rs -7.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 53.3, stands at -9.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at -7.4 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	9.9	6.9
TTM Earnings per share	Rs	-7.9	-6.1
Diluted earnings per share	Rs	-7.9	-6.1
Price to Cash Flow	x	-4.2	-7.4
TTM P/E ratio	x	-3.4	-9.0
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	29,986	23,176
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DHANI SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.0x during FY24, from 6.6x 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 -2.5x during FY24, from -2.0x 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 -10.9% during FY24, from -12.7% 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 -5.9% during FY24, from -7.2% 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 -6.9% during FY24, from -6.5% 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	6.6	7.0
Debtors’ Days	Days	760	811
Interest coverage	x	-2.0	-2.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	-6.5	-6.9
Return on equity	%	-12.7	-10.9
Return on capital employed	%	-7.2	-5.9

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

DHANI SERVICES Share Price Performance

Over the last one year, DHANI SERVICES share price has moved up from Rs 43.9 to Rs 53.3, registering a gain of Rs 9.4 or around 21.3%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for DHANI SERVICES and quarterly results for DHANI SERVICES)