Markets will remain closed on 20^th November, 2024 on account of Assembly Elections in Maharashtra.

CMS INFO SYSTEMS 2023-24 Annual Report Analysis

Wed, 17 Jul

CMS INFO SYSTEMS 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.

CMS INFO SYSTEMS Income Statement Analysis

• Operating income during the year rose 6.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.4% in FY24 as against 25.6% in FY23.
• Depreciation charges increased by 8.0% and finance costs decreased by 18.0% YoY, respectively.
• Other income grew by 25.4% YoY.
• Net profit for the year grew by 19.2% YoY.
• Net profit margins during the year grew from 15.5% in FY23 to 17.3% in FY24.

CMS INFO SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	19,147	20,468	6.9%
Other income	Rs m	620	778	25.4%
Total Revenues	Rs m	19,768	21,247	7.5%
Gross profit	Rs m	4,904	5,394	10.0%
Depreciation	Rs m	1,318	1,423	8.0%
Interest	Rs m	196	161	-18.0%
Profit before tax	Rs m	4,010	4,589	14.4%
Tax	Rs m	1,038	1,047	0.8%
Profit after tax	Rs m	2,972	3,542	19.2%
Gross profit margin	%	25.6	26.4
Effective tax rate	%	25.9	22.8
Net profit margin	%	15.5	17.3

For Investors: Our Big Prediction

CMS INFO SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 46.5%.
• Current assets rose 38% and stood at Rs 15 billion, while fixed assets rose 6% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 25 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 23%.

CMS INFO SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,236	18,397	20.7
Current Liabilities	Rs m	3,642	5,337	46.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,644	25,370	22.9
Current assets	Rs m	10,782	14,879	38.0
Fixed Assets	Rs m	9,861	10,492	6.4
Total Assets	Rs m	20,644	25,370	22.9

CMS INFO SYSTEMS Cash Flow Statement Analysis

• CMS INFO SYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -514 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 978 million from the Rs 320 million net cash flows seen during FY23.

CMS INFO SYSTEMS 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	4,068	3,852	-5.3%
Cash Flow from Investing Activities	Rs m	-3,226	-2,360	-
Cash Flow from Financing Activities	Rs m	-522	-514	-
Net Cash Flow	Rs m	320	978	205.9%

Current Valuations for CMS INFO SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an improvement from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 530.0, stands at 24.8 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 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 11.4 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	124.0	125.8
TTM Earnings per share	Rs	19.3	21.8
Diluted earnings per share	Rs	18.3	21.8
Price to Cash Flow	x	10.5	11.4
TTM P/E ratio	x	15.2	24.8
Price / Book Value ratio	x	2.9	3.1
Market Cap	Rs m	43,857	56,731
Dividends per share (Unadj.)	Rs	4.8	5.8

Ratio Analysis for CMS INFO SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY24, from 3.0x 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 29.5x during FY24, from 21.4x 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 19.3% during FY24, from 19.5% 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 25.8% during FY24, from 27.6% 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 14.6% during FY24, from 15.3% 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	3.0	2.8
Debtors’ Days	Days	100	118
Interest coverage	x	21.4	29.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.3	14.6
Return on equity	%	19.5	19.3
Return on capital employed	%	27.6	25.8

To see how CMS INFO SYSTEMS has performed over the last 5 years, please visit here.

CMS INFO SYSTEMS Share Price Performance

Over the last one year, CMS INFO SYSTEMS share price has moved up from Rs 390.4 to Rs 530.0, registering a gain of Rs 139.6 or around 35.8%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for CMS INFO SYSTEMS and quarterly results for CMS INFO SYSTEMS)