INSPIRISYS SOLUTIONS 2023-24 Annual Report Analysis

Mon, 10 Jun

INSPIRISYS SOLUTIONS 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.

INSPIRISYS SOLUTIONS Income Statement Analysis

• Operating income during the year rose 32.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY24 as against 7.8% in FY23.
• Depreciation charges decreased by 17.8% and finance costs increased by 36.0% YoY, respectively.
• Other income declined by 23.4% YoY.
• Net profit for the year declined by 5.4% YoY.
• Net profit margins during the year declined from 4.4% in FY23 to 3.2% in FY24.

INSPIRISYS SOLUTIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,717	4,905	32.0%
Other income	Rs m	49	37	-23.4%
Total Revenues	Rs m	3,765	4,942	31.3%
Gross profit	Rs m	289	319	10.1%
Depreciation	Rs m	56	46	-17.8%
Interest	Rs m	78	106	36.0%
Profit before tax	Rs m	205	204	-0.1%
Tax	Rs m	41	50	20.9%
Profit after tax	Rs m	164	155	-5.4%
Gross profit margin	%	7.8	6.5
Effective tax rate	%	20.1	24.3
Net profit margin	%	4.4	3.2

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

INSPIRISYS SOLUTIONS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 10.4%.
• Long-term debt stood at Rs 58 million as compared to Rs 55 million during FY23, a growth of 5.6%.
• Current assets rose 32% and stood at Rs 2 billion, while fixed assets rose 2% and stood at Rs 587 million 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 24%.

INSPIRISYS SOLUTIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-84	293	NA
Current Liabilities	Rs m	2,049	2,263	10.4
Long-term Debt	Rs m	55	58	5.6
Total Liabilities	Rs m	2,120	2,629	24.0
Current assets	Rs m	1,543	2,037	32.0
Fixed Assets	Rs m	578	587	1.6
Total Assets	Rs m	2,120	2,629	24.0

INSPIRISYS SOLUTIONS Cash Flow Statement Analysis

• INSPIRISYS SOLUTIONS's cash flow from operating activities (CFO) during FY24 stood at Rs 288 million, an improvement of 58.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -125 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 10 million, an improvement of 109% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 169 million from the Rs 90 million net cash flows seen during FY23.

INSPIRISYS SOLUTIONS 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	182	288	58.2%
Cash Flow from Investing Activities	Rs m	3	-125	-
Cash Flow from Financing Activities	Rs m	-108	10	-
Net Cash Flow	Rs m	90	169	88.4%

Current Valuations for INSPIRISYS SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an decline from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 89.4, stands at 36.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	93.8	123.8
TTM Earnings per share	Rs	4.1	3.9
Diluted earnings per share	Rs	4.1	3.9
Price to Cash Flow	x	8.0	16.5
TTM P/E ratio	x	14.9	36.8
Price / Book Value ratio	x	-26.7	11.3
Market Cap	Rs m	2,236	3,313
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INSPIRISYS SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY24, from 0.8x 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 2.9x during FY24, from 3.6x 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 52.8% during FY24, from -195.3% 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 88.3% during FY24, from -994.4% 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 9.9% during FY24, from 11.4% 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	0.8	0.9
Debtors’ Days	Days	820	731
Interest coverage	x	3.6	2.9
Debt to equity ratio	x	-0.7	0.2
Return on assets	%	11.4	9.9
Return on equity	%	-195.3	52.8
Return on capital employed	%	-994.4	88.3

To see how INSPIRISYS SOLUTIONS has performed over the last 5 years, please visit here.

INSPIRISYS SOLUTIONS Share Price Performance

Over the last one year, INSPIRISYS SOLUTIONS share price has moved up from Rs 74.0 to Rs 89.4, registering a gain of Rs 15.4 or around 20.8%.

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

(To know more, check out historical annual results for INSPIRISYS SOLUTIONS and quarterly results for INSPIRISYS SOLUTIONS)