DATAMATICS GLOBAL 2023-24 Annual Report Analysis

Fri, 12 Jul

DATAMATICS GLOBAL 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.

DATAMATICS GLOBAL Income Statement Analysis

• Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.8% in FY24 as against 16.7% in FY23.
• Depreciation charges increased by 3.7% and finance costs decreased by 14.6% YoY, respectively.
• Other income grew by 15.9% YoY.
• Net profit for the year grew by 6.4% YoY.
• Net profit margins during the year grew from 12.7% in FY23 to 12.7% in FY24.

DATAMATICS GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,592	15,499	6.2%
Other income	Rs m	393	455	15.9%
Total Revenues	Rs m	14,985	15,954	6.5%
Gross profit	Rs m	2,434	2,452	0.8%
Depreciation	Rs m	350	363	3.7%
Interest	Rs m	43	37	-14.6%
Profit before tax	Rs m	2,434	2,508	3.1%
Tax	Rs m	581	537	-7.5%
Profit after tax	Rs m	1,853	1,971	6.4%
Gross profit margin	%	16.7	15.8
Effective tax rate	%	23.9	21.4
Net profit margin	%	12.7	12.7

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DATAMATICS GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 3.8%.
• Current assets rose 9% and stood at Rs 9 billion, while fixed assets rose 34% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 14%.

DATAMATICS GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,459	12,237	17.0
Current Liabilities	Rs m	1,858	1,929	3.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,686	14,507	14.4
Current assets	Rs m	8,692	9,452	8.7
Fixed Assets	Rs m	3,766	5,055	34.2
Total Assets	Rs m	12,686	14,507	14.4

DATAMATICS GLOBAL Cash Flow Statement Analysis

• DATAMATICS GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 40.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 81.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -385 million, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -339 million from the Rs -347 million net cash flows seen during FY23.

DATAMATICS GLOBAL 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	1,305	1,839	40.9%
Cash Flow from Investing Activities	Rs m	-990	-1,794	-
Cash Flow from Financing Activities	Rs m	-662	-385	-
Net Cash Flow	Rs m	-347	-339	-

Current Valuations for DATAMATICS GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.4, an improvement from the EPS of Rs 31.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 625.0, stands at 18.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 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	247.5	262.7
TTM Earnings per share	Rs	31.4	33.4
Diluted earnings per share	Rs	31.4	33.4
Price to Cash Flow	x	7.6	13.6
TTM P/E ratio	x	9.0	18.7
Price / Book Value ratio	x	1.7	2.6
Market Cap	Rs m	17,611	31,718
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for DATAMATICS GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.9x during FY24, from 4.7x 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 69.2x during FY24, from 57.5x 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 16.1% during FY24, from 17.7% 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 20.8% during FY24, from 23.7% 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 13.8% during FY24, from 14.9% 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	4.7	4.9
Debtors’ Days	Days	7	7
Interest coverage	x	57.5	69.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.9	13.8
Return on equity	%	17.7	16.1
Return on capital employed	%	23.7	20.8

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

DATAMATICS GLOBAL Share Price Performance

Over the last one year, DATAMATICS GLOBAL share price has moved up from Rs 609.3 to Rs 625.0, registering a gain of Rs 15.8 or around 2.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 38,745.5 (up 1.5%). Over the last one year it has moved up from 29,490.1 to 38,745.5, a gain of 9,255 points (up 31.4%).

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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