ALLSEC TECHNOLOGIES 2023-24 Annual Report Analysis

Mon, 8 Jul

ALLSEC TECHNOLOGIES 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.

ALLSEC TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.5% in FY24 as against 22.6% in FY23.
• Depreciation charges increased by 18.9% and finance costs increased by 4.4% YoY, respectively.
• Other income declined by 6.5% YoY.
• Net profit for the year grew by 31.0% YoY.
• Net profit margins during the year grew from 12.5% in FY23 to 13.6% in FY24.

ALLSEC TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,905	4,694	20.2%
Other income	Rs m	85	79	-6.5%
Total Revenues	Rs m	3,989	4,773	19.6%
Gross profit	Rs m	882	1,148	30.2%
Depreciation	Rs m	283	336	18.9%
Interest	Rs m	39	41	4.4%
Profit before tax	Rs m	645	851	31.9%
Tax	Rs m	157	211	34.6%
Profit after tax	Rs m	489	640	31.0%
Gross profit margin	%	22.6	24.5
Effective tax rate	%	24.3	24.8
Net profit margin	%	12.5	13.6

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ALLSEC TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 862 million as compared to Rs 711 million in FY23, thereby witnessing an increase of 21.2%.
• Current assets rose 7% and stood at Rs 3 billion, while fixed assets rose 18% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 10%.

ALLSEC TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,297	2,455	6.9
Current Liabilities	Rs m	711	862	21.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,266	3,596	10.1
Current assets	Rs m	2,347	2,509	6.9
Fixed Assets	Rs m	919	1,086	18.1
Total Assets	Rs m	3,266	3,596	10.1

ALLSEC TECHNOLOGIES Cash Flow Statement Analysis

• ALLSEC TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 908 million, an improvement of 27.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -295 million, an improvement of 69.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -709 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -84 million from the Rs 87 million net cash flows seen during FY23.

ALLSEC TECHNOLOGIES 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	713	908	27.4%
Cash Flow from Investing Activities	Rs m	-174	-295	-
Cash Flow from Financing Activities	Rs m	-516	-709	-
Net Cash Flow	Rs m	87	-84	-

Current Valuations for ALLSEC TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.0, an improvement from the EPS of Rs 32.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,108.0, stands at 26.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	256.2	308.0
TTM Earnings per share	Rs	32.1	42.0
Diluted earnings per share	Rs	32.1	42.0
Price to Cash Flow	x	9.6	10.3
TTM P/E ratio	x	15.2	26.4
Price / Book Value ratio	x	3.3	4.1
Market Cap	Rs m	7,621	10,019
Dividends per share (Unadj.)	Rs	20.0	45.0

Ratio Analysis for ALLSEC TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY24, from 3.3x 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 22.0x during FY24, from 17.6x 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 26.1% during FY24, from 21.3% 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 36.3% during FY24, from 29.8% 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 improved and stood at 18.9% during FY24, from 16.1% 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	3.3	2.9
Debtors’ Days	Days	554	558
Interest coverage	x	17.6	22.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.1	18.9
Return on equity	%	21.3	26.1
Return on capital employed	%	29.8	36.3

To see how ALLSEC TECHNOLOGIES has performed over the last 5 years, please visit here.

ALLSEC TECHNOLOGIES Share Price Performance

Over the last one year, ALLSEC TECHNOLOGIES share price has moved up from Rs 526.2 to Rs 1,108.0, registering a gain of Rs 581.9 or around 110.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 38,499.1 (up 0.0%). Over the last one year it has moved up from 29,834.1 to 38,499.1, a gain of 8,665 points (up 29.0%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for ALLSEC TECHNOLOGIES and quarterly results for ALLSEC TECHNOLOGIES)