ALLIED DIGITAL 2023-24 Annual Report Analysis

Tue, 23 Jul

ALLIED DIGITAL 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.

ALLIED DIGITAL Income Statement Analysis

• Operating income during the year rose 4.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY24 as against 13.4% in FY23.
• Depreciation charges decreased by 3.7% and finance costs increased by 29.6% YoY, respectively.
• Other income declined by 79.5% YoY.
• Net profit for the year declined by 14.7% YoY.
• Net profit margins during the year declined from 8.1% in FY23 to 6.7% in FY24.

ALLIED DIGITAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,601	6,871	4.1%
Other income	Rs m	57	12	-79.5%
Total Revenues	Rs m	6,657	6,882	3.4%
Gross profit	Rs m	883	834	-5.6%
Depreciation	Rs m	170	164	-3.7%
Interest	Rs m	40	52	29.6%
Profit before tax	Rs m	730	630	-13.7%
Tax	Rs m	192	171	-10.9%
Profit after tax	Rs m	537	458	-14.7%
Gross profit margin	%	13.4	12.1
Effective tax rate	%	26.4	27.2
Net profit margin	%	8.1	6.7

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ALLIED DIGITAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 929 million in FY23, thereby witnessing an increase of 33.8%.
• Long-term debt down at Rs 117 million as compared to Rs 185 million during FY23, a fall of 36.7%.
• Current assets rose 17% and stood at Rs 4 billion, while fixed assets rose 6% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 12%.

ALLIED DIGITAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,254	5,680	8.1
Current Liabilities	Rs m	929	1,243	33.8
Long-term Debt	Rs m	185	117	-36.7
Total Liabilities	Rs m	6,949	7,780	12.0
Current assets	Rs m	3,837	4,479	16.7
Fixed Assets	Rs m	3,112	3,302	6.1
Total Assets	Rs m	6,949	7,780	12.0

ALLIED DIGITAL Cash Flow Statement Analysis

• ALLIED DIGITAL's cash flow from operating activities (CFO) during FY24 stood at Rs 676 million, an improvement of 39.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -29 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -102 million, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 545 million from the Rs 243 million net cash flows seen during FY23.

ALLIED DIGITAL 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	486	676	39.1%
Cash Flow from Investing Activities	Rs m	-117	-29	-
Cash Flow from Financing Activities	Rs m	-127	-102	-
Net Cash Flow	Rs m	243	545	124.0%

Current Valuations for ALLIED DIGITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an decline from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 221.4, stands at 26.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	120.4	124.3
TTM Earnings per share	Rs	9.8	8.3
Diluted earnings per share	Rs	9.7	8.3
Price to Cash Flow	x	6.0	12.4
TTM P/E ratio	x	7.9	26.8
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	6,493	7,694
Dividends per share (Unadj.)	Rs	1.3	1.5

Ratio Analysis for ALLIED DIGITAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY24, from 4.1x 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 13.1x during FY24, from 19.2x 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 8.1% during FY24, from 10.2% 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 11.8% during FY24, from 14.2% 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 6.6% during FY24, from 8.3% 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	4.1	3.6
Debtors’ Days	Days	882	796
Interest coverage	x	19.2	13.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.3	6.6
Return on equity	%	10.2	8.1
Return on capital employed	%	14.2	11.8

To see how ALLIED DIGITAL has performed over the last 5 years, please visit here.

ALLIED DIGITAL Share Price Performance

Over the last one year, ALLIED DIGITAL share price has moved up from Rs 146.6 to Rs 221.4, registering a gain of Rs 74.8 or around 51.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 40,820.3 (up 0.6%). Over the last one year it has moved up from 30,099.2 to 40,820.3, a gain of 10,721 points (up 35.6%).

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, check out historical annual results for ALLIED DIGITAL and quarterly results for ALLIED DIGITAL)