APTECH 2023-24 Annual Report Analysis

Mon, 14 Oct

APTECH 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.

APTECH Income Statement Analysis

• Operating income during the year fell 4.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 49.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY24 as against 14.7% in FY23.
• Depreciation charges increased by 28.6% and finance costs increased by 155.7% YoY, respectively.
• Other income declined by 26.5% YoY.
• Net profit for the year declined by 57.1% YoY.
• Net profit margins during the year declined from 14.8% in FY23 to 6.6% in FY24.

APTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,569	4,368	-4.4%
Other income	Rs m	224	165	-26.5%
Total Revenues	Rs m	4,793	4,533	-5.4%
Gross profit	Rs m	672	343	-49.0%
Depreciation	Rs m	65	84	28.6%
Interest	Rs m	8	20	155.7%
Profit before tax	Rs m	823	404	-50.9%
Tax	Rs m	146	113	-22.3%
Profit after tax	Rs m	677	290	-57.1%
Gross profit margin	%	14.7	7.8
Effective tax rate	%	17.7	28.1
Net profit margin	%	14.8	6.6

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APTECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -41.0%.
• Current assets fell 12% and stood at Rs 3 billion, while fixed assets fell 37% and stood at Rs 748 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 18%.

APTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,547	2,595	1.9
Current Liabilities	Rs m	2,362	1,393	-41.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,680	3,823	-18.3
Current assets	Rs m	3,496	3,074	-12.1
Fixed Assets	Rs m	1,184	748	-36.8
Total Assets	Rs m	4,680	3,823	-18.3

APTECH Cash Flow Statement Analysis

• APTECH's cash flow from operating activities (CFO) during FY24 stood at Rs -84 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -235 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -278 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -597 million from the Rs 238 million net cash flows seen during FY23.

APTECH 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	987	-84	-
Cash Flow from Investing Activities	Rs m	-542	-235	-
Cash Flow from Financing Activities	Rs m	-208	-278	-
Net Cash Flow	Rs m	238	-597	-

Current Valuations for APTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an decline from the EPS of Rs 16.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 210.1, stands at 46.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 48.4 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	110.3	75.3
TTM Earnings per share	Rs	16.3	5.0
Diluted earnings per share	Rs	11.7	5.0
Price to Cash Flow	x	19.0	48.4
TTM P/E ratio	x	20.9	46.9
Price / Book Value ratio	x	3.4	7.0
Market Cap	Rs m	8,646	18,089
Dividends per share (Unadj.)	Rs	6.0	4.5

Ratio Analysis for APTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 1.5x 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 21.1x during FY24, from 105.5x 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 11.2% during FY24, from 26.6% 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 16.3% during FY24, from 32.6% 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 8.1% during FY24, from 14.6% 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	1.5	2.2
Debtors’ Days	Days	445	396
Interest coverage	x	105.5	21.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.6	8.1
Return on equity	%	26.6	11.2
Return on capital employed	%	32.6	16.3

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

APTECH Share Price Performance

Over the last one year, APTECH share price has moved down from Rs 288.7 to Rs 210.1, registering a loss of Rs 78.6 or around 27.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 43,257.8 (up 1.0%). Over the last one year it has moved up from 32,208.0 to 43,257.8, a gain of 11,050 points (up 34.3%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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