OPTIEMUS INFRACOM 2023-24 Annual Report Analysis

Tue, 17 Sep

OPTIEMUS INFRACOM 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.

OPTIEMUS INFRACOM Income Statement Analysis

• Operating income during the year rose 30.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 365.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.5% in FY24 as against 1.5% in FY23.
• Depreciation charges increased by 36.1% and finance costs increased by 36.2% YoY, respectively.
• Other income declined by 65.9% YoY.
• Net profit for the year grew by 35.6% YoY.
• Net profit margins during the year grew from 3.6% in FY23 to 3.7% in FY24.

OPTIEMUS INFRACOM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,739	15,277	30.1%
Other income	Rs m	540	184	-65.9%
Total Revenues	Rs m	12,279	15,461	25.9%
Gross profit	Rs m	179	833	365.5%
Depreciation	Rs m	130	176	36.1%
Interest	Rs m	58	80	36.2%
Profit before tax	Rs m	531	761	43.2%
Tax	Rs m	113	193	71.7%
Profit after tax	Rs m	419	568	35.6%
Gross profit margin	%	1.5	5.5
Effective tax rate	%	21.2	25.4
Net profit margin	%	3.6	3.7

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OPTIEMUS INFRACOM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 82.0%.
• Long-term debt stood at Rs 197 million as compared to Rs 72 million during FY23, a growth of 174.5%.
• Current assets rose 63% and stood at Rs 10 billion, while fixed assets rose 18% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 49%.

OPTIEMUS INFRACOM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,825	4,265	11.5
Current Liabilities	Rs m	4,653	8,471	82.0
Long-term Debt	Rs m	72	197	174.5
Total Liabilities	Rs m	9,036	13,475	49.1
Current assets	Rs m	6,253	10,201	63.1
Fixed Assets	Rs m	2,783	3,274	17.7
Total Assets	Rs m	9,036	13,475	49.1

OPTIEMUS INFRACOM Cash Flow Statement Analysis

• OPTIEMUS INFRACOM's cash flow from operating activities (CFO) during FY24 stood at Rs 403 million, an improvement of 3,383.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -506 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 253 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 150 million from the Rs -110 million net cash flows seen during FY23.

OPTIEMUS INFRACOM 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	12	403	3,383.3%
Cash Flow from Investing Activities	Rs m	-821	-506	-
Cash Flow from Financing Activities	Rs m	699	253	-63.9%
Net Cash Flow	Rs m	-110	150	-

Current Valuations for OPTIEMUS INFRACOM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an improvement from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 642.3, stands at 96.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.9 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 31.2 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	136.7	177.9
TTM Earnings per share	Rs	4.9	6.6
Diluted earnings per share	Rs	4.9	6.6
Price to Cash Flow	x	32.2	31.2
TTM P/E ratio	x	36.2	96.0
Price / Book Value ratio	x	6.9	5.5
Market Cap	Rs m	26,332	23,252
Dividends per share (Unadj.)	Rs	1.5	0.0

Ratio Analysis for OPTIEMUS INFRACOM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 10.6x during FY24, from 10.1x 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 13.3% during FY24, from 10.9% 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 improved and stood at 18.8% during FY24, from 15.1% 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 4.8% during FY24, from 5.3% 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	1.3	1.2
Debtors’ Days	Days	1,159	1,160
Interest coverage	x	10.1	10.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	4.8
Return on equity	%	10.9	13.3
Return on capital employed	%	15.1	18.8

To see how OPTIEMUS INFRACOM has performed over the last 5 years, please visit here.

OPTIEMUS INFRACOM Share Price Performance

Over the last one year, OPTIEMUS INFRACOM share price has moved up from Rs 325.2 to Rs 642.3, registering a gain of Rs 317.2 or around 97.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 20,152.2 (up 0.1%). Over the last one year it has moved up from 15,024.3 to 20,152.2, a gain of 5,128 points (up 34.1%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for OPTIEMUS INFRACOM and quarterly results for OPTIEMUS INFRACOM)