DIVGI TORQTRANSFER 2023-24 Annual Report Analysis

Mon, 8 Jul

DIVGI TORQTRANSFER 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.

DIVGI TORQTRANSFER Income Statement Analysis

• Operating income during the year fell 6.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.0% in FY24 as against 27.5% in FY23.
• Depreciation charges increased by 43.9% and finance costs increased by 40.3% YoY, respectively.
• Other income grew by 156.5% YoY.
• Net profit for the year declined by 22.3% YoY.
• Net profit margins during the year declined from 18.9% in FY23 to 15.7% in FY24.

DIVGI TORQTRANSFER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,710	2,534	-6.5%
Other income	Rs m	76	196	156.5%
Total Revenues	Rs m	2,787	2,730	-2.0%
Gross profit	Rs m	746	532	-28.6%
Depreciation	Rs m	130	187	43.9%
Interest	Rs m	4	6	40.3%
Profit before tax	Rs m	688	535	-22.2%
Tax	Rs m	177	138	-21.9%
Profit after tax	Rs m	512	397	-22.3%
Gross profit margin	%	27.5	21.0
Effective tax rate	%	25.7	25.8
Net profit margin	%	18.9	15.7

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DIVGI TORQTRANSFER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 547 million as compared to Rs 852 million in FY23, thereby witnessing an decrease of -35.8%.
• Long-term debt down at Rs 3 million as compared to Rs 3 million during FY23, a fall of 16.7%.
• Current assets fell 11% and stood at Rs 4 billion, while fixed assets rose 22% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a fall of 0%.

DIVGI TORQTRANSFER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,513	5,803	5.3
Current Liabilities	Rs m	852	547	-35.8
Long-term Debt	Rs m	3	3	-16.7
Total Liabilities	Rs m	6,420	6,414	-0.1
Current assets	Rs m	4,279	3,793	-11.4
Fixed Assets	Rs m	2,141	2,621	22.4
Total Assets	Rs m	6,420	6,414	-0.1

DIVGI TORQTRANSFER Cash Flow Statement Analysis

• DIVGI TORQTRANSFER's cash flow from operating activities (CFO) during FY24 stood at Rs 325 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 61 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -117 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 268 million from the Rs -126 million net cash flows seen during FY23.

DIVGI TORQTRANSFER 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	408	325	-20.5%
Cash Flow from Investing Activities	Rs m	-2,131	61	-
Cash Flow from Financing Activities	Rs m	1,597	-117	-
Net Cash Flow	Rs m	-126	268	-

Current Valuations for DIVGI TORQTRANSFER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.0, an decline from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 753.6, stands at 58.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 46.9 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	88.6	82.9
TTM Earnings per share	Rs	16.7	13.0
Diluted earnings per share	Rs	16.7	13.0
Price to Cash Flow	x	31.4	46.9
TTM P/E ratio	x	39.4	58.0
Price / Book Value ratio	x	3.4	4.7
Market Cap	Rs m	18,994	27,372
Dividends per share (Unadj.)	Rs	3.4	2.6

Ratio Analysis for DIVGI TORQTRANSFER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.9x during FY24, from 5.0x 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 deteriorated and stood at 94.8x during FY24, from 170.1x 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 declined and down at 6.8% during FY24, from 9.3% 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 declined and down at 9.3% during FY24, from 12.6% 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 6.3% during FY24, from 8.0% 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	5.0	6.9
Debtors’ Days	Days	99	91
Interest coverage	x	170.1	94.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	6.3
Return on equity	%	9.3	6.8
Return on capital employed	%	12.6	9.3

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

DIVGI TORQTRANSFER Share Price Performance

Over the last one year, DIVGI TORQTRANSFER share price has moved down from Rs 931.1 to Rs 753.6, registering a loss of Rs 177.5 or around 19.1%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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