KSOLVES INDIA 2022-23 Annual Report Analysis

Thu, 6 Jul

KSOLVES INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

KSOLVES INDIA Income Statement Analysis

• Operating income during the year rose 63.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.5% in FY23 as against 42.4% in FY22.
• Depreciation charges decreased by 18.1% and finance costs decreased by 12.8% YoY, respectively.
• Other income declined by 50.8% YoY.
• Net profit for the year grew by 58.1% YoY.
• Net profit margins during the year declined from 33.4% in FY22 to 32.3% in FY23.

KSOLVES INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	471	771	63.8%
Other income	Rs m	13	6	-50.8%
Total Revenues	Rs m	483	777	60.8%
Gross profit	Rs m	200	328	64.4%
Depreciation	Rs m	5	4	-18.1%
Interest	Rs m	0	0	-12.8%
Profit before tax	Rs m	207	330	59.4%
Tax	Rs m	50	81	63.6%
Profit after tax	Rs m	157	249	58.1%
Gross profit margin	%	42.4	42.5
Effective tax rate	%	24.0	24.6
Net profit margin	%	33.4	32.3

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KSOLVES INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 103 million as compared to Rs 63 million in FY22, thereby witnessing an increase of 62.3%.
• Current assets rose 43% and stood at Rs 316 million, while fixed assets rose 56% and stood at Rs 20 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 336 million as against Rs 236 million during FY22, thereby witnessing a growth of 43%.

KSOLVES INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	168	225	33.9
Current Liabilities	Rs m	63	103	62.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	236	336	42.6
Current assets	Rs m	221	316	42.9
Fixed Assets	Rs m	13	20	55.5
Total Assets	Rs m	236	336	42.6

KSOLVES INDIA Cash Flow Statement Analysis

• KSOLVES INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 203 million, an improvement of 99.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -184 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 15 million from the Rs -12 million net cash flows seen during FY22.

KSOLVES INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	102	203	99.8%
Cash Flow from Investing Activities	Rs m	9	-4	-
Cash Flow from Financing Activities	Rs m	-123	-184	-
Net Cash Flow	Rs m	-12	15	-

Current Valuations for KSOLVES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.0, an improvement from the EPS of Rs 13.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 885.5, stands at 42.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 46.7 times, while the price to sales ratio stands at 13.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	39.7	65.0
TTM Earnings per share	Rs	13.3	21.0
Diluted earnings per share	Rs	13.3	21.0
Price to Cash Flow	x	0.0	20.0
TTM P/E ratio	x	0.0	42.7
Price / Book Value ratio	x	71.0	22.4
Market Cap	Rs m	11,920	5,046
Dividends per share (Unadj.)	Rs	5.8	15.5

Ratio Analysis for KSOLVES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY23, from 3.5x during FY22. 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 971.4x during FY23, from 531.6x during FY22. 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 110.5% during FY23, from 93.6% during FY23. 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 146.8% during FY23, from 123.4% during FY22. 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 74.0% during FY23, from 66.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.5	3.1
Debtors’ Days	Days	718	714
Interest coverage	x	531.6	971.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	66.8	74.0
Return on equity	%	93.6	110.5
Return on capital employed	%	123.4	146.8

To see how KSOLVES INDIA has performed over the last 5 years, please visit here.

KSOLVES INDIA Share Price Performance

Over the last one year, KSOLVES INDIA share price has moved up from Rs 0.0 to Rs 885.5, registering a gain of Rs 885.5 or around 0.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,095.0 (up 0.3%). Over the last one year it has moved up from 28,511.5 to 30,095.0, a gain of 1,584 points (up 5.6%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for KSOLVES INDIA and quarterly results for KSOLVES INDIA)