DALMIA BHARAT 2023-24 Annual Report Analysis

Mon, 10 Jun

DALMIA BHARAT 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.

DALMIA BHARAT Income Statement Analysis

• Operating income during the year rose 8.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.9% in FY24 as against 20.1% in FY23.
• Depreciation charges increased by 14.8% and finance costs increased by 65.0% YoY, respectively.
• Other income grew by 120.0% YoY.
• Net profit for the year declined by 21.1% YoY.
• Net profit margins during the year declined from 8.0% in FY23 to 5.8% in FY24.

DALMIA BHARAT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	135,520	146,910	8.4%
Other income	Rs m	1,450	3,190	120.0%
Total Revenues	Rs m	136,970	150,100	9.6%
Gross profit	Rs m	27,190	26,350	-3.1%
Depreciation	Rs m	13,050	14,980	14.8%
Interest	Rs m	2,340	3,860	65.0%
Profit before tax	Rs m	13,250	10,700	-19.2%
Tax	Rs m	2,420	2,160	-10.7%
Profit after tax	Rs m	10,830	8,540	-21.1%
Gross profit margin	%	20.1	17.9
Effective tax rate	%	18.3	20.2
Net profit margin	%	8.0	5.8

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DALMIA BHARAT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 45 billion as compared to Rs 45 billion in FY23, thereby witnessing an increase of 0.3%.
• Long-term debt stood at Rs 44 billion as compared to Rs 32 billion during FY23, a growth of 38.0%.
• Current assets rose 21% and stood at Rs 78 billion, while fixed assets rose 9% and stood at Rs 199 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 277 billion as against Rs 255 billion during FY23, thereby witnessing a growth of 9%.

DALMIA BHARAT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	156,160	163,960	5.0
Current Liabilities	Rs m	44,600	44,740	0.3
Long-term Debt	Rs m	32,100	44,310	38.0
Total Liabilities	Rs m	255,190	277,120	8.6
Current assets	Rs m	64,600	78,300	21.2
Fixed Assets	Rs m	181,690	198,560	9.3
Total Assets	Rs m	255,190	277,120	8.6

DALMIA BHARAT Cash Flow Statement Analysis

• DALMIA BHARAT's cash flow from operating activities (CFO) during FY24 stood at Rs 26 billion, an improvement of 17.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -28 billion, an improvement of 18.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 940 million net cash flows seen during FY23.

DALMIA BHARAT 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	22,520	26,350	17.0%
Cash Flow from Investing Activities	Rs m	-23,260	-27,500	-
Cash Flow from Financing Activities	Rs m	1,680	2,220	32.1%
Net Cash Flow	Rs m	940	1,070	13.8%

Current Valuations for DALMIA BHARAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.5, an decline from the EPS of Rs 57.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,851.5, stands at 40.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.9 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	722.9	783.3
TTM Earnings per share	Rs	57.8	45.5
Diluted earnings per share	Rs	57.7	45.5
Price to Cash Flow	x	15.4	16.9
TTM P/E ratio	x	69.6	40.7
Price / Book Value ratio	x	1.9	2.4
Market Cap	Rs m	300,119	397,024
Dividends per share (Unadj.)	Rs	9.0	9.0

Ratio Analysis for DALMIA BHARAT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 deteriorated and stood at 3.8x during FY24, from 6.7x 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 5.2% during FY24, from 6.9% 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 declined and down at 7.0% during FY24, from 8.3% 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 4.5% during FY24, from 5.2% 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	1.8
Debtors’ Days	Days	2	2
Interest coverage	x	6.7	3.8
Debt to equity ratio	x	0.2	0.3
Return on assets	%	5.2	4.5
Return on equity	%	6.9	5.2
Return on capital employed	%	8.3	7.0

To see how DALMIA BHARAT has performed over the last 5 years, please visit here.

DALMIA BHARAT Share Price Performance

Over the last one year, DALMIA BHARAT share price has moved down from Rs 2,095.3 to Rs 1,851.5, registering a loss of Rs 243.8 or around 11.6%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for DALMIA BHARAT and quarterly results for DALMIA BHARAT)