DECCAN GOLD MINES 2023-24 Annual Report Analysis

Fri, 4 Oct

DECCAN GOLD MINES 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.

DECCAN GOLD MINES Income Statement Analysis

• Operating income during the year rose 954.8% 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 346.6% in FY24 as against 725.2% in FY23.
• Depreciation charges increased by 38478.3% and finance costs increased by 1307.3% YoY, respectively.
• Other income grew by 730.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 857.9% in FY23 to 735.5% in FY24.

DECCAN GOLD MINES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3	34	954.8%
Other income	Rs m	0	2	730.0%
Total Revenues	Rs m	3	36	941.7%
Gross profit	Rs m	-24	-119	NA
Depreciation	Rs m	0	89	38,478.3%
Interest	Rs m	3	46	1,307.3%
Profit before tax	Rs m	-27	-252	NA
Tax	Rs m	1	0	-75.0%
Profit after tax	Rs m	-28	-252	NA
Gross profit margin	%	-725.2	-346.6
Effective tax rate	%	-3.7	-0.1
Net profit margin	%	-857.9	-735.5

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DECCAN GOLD MINES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 84 million in FY23, thereby witnessing an increase of 1240.4%.
• Long-term debt down at Rs 0 million as compared to Rs 20 million during FY23, a fall of 98.4%.
• Current assets rose 693% and stood at Rs 697 million, while fixed assets rose 63% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 96%.

DECCAN GOLD MINES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,550	2,005	29.4
Current Liabilities	Rs m	84	1,131	1,240.4
Long-term Debt	Rs m	20	0	-98.4
Total Liabilities	Rs m	1,658	3,251	96.0
Current assets	Rs m	88	697	693.0
Fixed Assets	Rs m	1,571	2,555	62.7
Total Assets	Rs m	1,658	3,251	96.0

DECCAN GOLD MINES Cash Flow Statement Analysis

• DECCAN GOLD MINES's cash flow from operating activities (CFO) during FY24 stood at Rs -571 million, an improvement of 2,980.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 26.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 74 million from the Rs 0 million net cash flows seen during FY23.

DECCAN GOLD MINES 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	-19	-571	-
Cash Flow from Investing Activities	Rs m	-1,164	-1,472	-
Cash Flow from Financing Activities	Rs m	1,183	2,117	78.9%
Net Cash Flow	Rs m	0	74	38,942.1%

Current Valuations for DECCAN GOLD MINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.7, an decline from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 138.2, stands at -67.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 593.5 times.
• The company's price to cash flow (P/CF) ratio stood at -90.6 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	0.0	0.2
TTM Earnings per share	Rs	-0.2	-1.7
Diluted earnings per share	Rs	-0.2	-1.7
Price to Cash Flow	x	-243.5	-90.6
TTM P/E ratio	x	-241.6	-67.2
Price / Book Value ratio	x	3.1	7.4
Market Cap	Rs m	4,731	14,804
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DECCAN GOLD MINES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY24, from 1.0x 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 -4.5x during FY24, from -7.2x 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 -12.6% during FY24, from -1.8% 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 -10.3% during FY24, from -1.5% 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 -6.3% during FY24, from -1.5% 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	1.0	0.6
Debtors’ Days	Days	17,969	202
Interest coverage	x	-7.2	-4.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-1.5	-6.3
Return on equity	%	-1.8	-12.6
Return on capital employed	%	-1.5	-10.3

To see how DECCAN GOLD MINES has performed over the last 5 years, please visit here.

DECCAN GOLD MINES Share Price Performance

Over the last one year, DECCAN GOLD MINES share price has moved up from Rs 92.7 to Rs 138.2, registering a gain of Rs 45.5 or around 49.1%.

Overall, the S&P BSE SENSEX is up 25.9% over the year.

(To know more, check out historical annual results for DECCAN GOLD MINES and quarterly results for DECCAN GOLD MINES)