EASTERN LOGICA INFOWAY LTD. 2023-24 Annual Report Analysis

Wed, 24 Jul

EASTERN LOGICA INFOWAY LTD. 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.

EASTERN LOGICA INFOWAY LTD. Income Statement Analysis

• Operating income during the year rose 51.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.7% in FY24 as against 1.6% in FY23.
• Depreciation charges decreased by 23.7% and finance costs increased by 43.6% YoY, respectively.
• Other income grew by 258.3% YoY.
• Net profit for the year grew by 130.5% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 0.8% in FY24.

EASTERN LOGICA INFOWAY LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,047	10,642	51.0%
Other income	Rs m	8	29	258.3%
Total Revenues	Rs m	7,055	10,671	51.3%
Gross profit	Rs m	111	180	61.8%
Depreciation	Rs m	2	1	-23.7%
Interest	Rs m	68	98	43.6%
Profit before tax	Rs m	49	110	122.5%
Tax	Rs m	14	29	102.8%
Profit after tax	Rs m	35	81	130.5%
Gross profit margin	%	1.6	1.7
Effective tax rate	%	28.6	26.1
Net profit margin	%	0.5	0.8

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EASTERN LOGICA INFOWAY LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 965 million in FY23, thereby witnessing an increase of 60.1%.
• Long-term debt down at Rs 17 million as compared to Rs 38 million during FY23, a fall of 54.6%.
• Current assets rose 38% and stood at Rs 2 billion, while fixed assets rose 77% and stood at Rs 251 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 42%.

EASTERN LOGICA INFOWAY LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	532	613	15.2
Current Liabilities	Rs m	965	1,545	60.1
Long-term Debt	Rs m	38	17	-54.6
Total Liabilities	Rs m	1,539	2,180	41.7
Current assets	Rs m	1,397	1,929	38.1
Fixed Assets	Rs m	142	251	76.7
Total Assets	Rs m	1,539	2,180	41.7

EASTERN LOGICA INFOWAY LTD. Cash Flow Statement Analysis

• EASTERN LOGICA INFOWAY LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 234 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -119 million, an improvement of 1,831.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -113 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs -4 million net cash flows seen during FY23.

EASTERN LOGICA INFOWAY LTD. 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	-68	234	-
Cash Flow from Investing Activities	Rs m	-6	-119	-
Cash Flow from Financing Activities	Rs m	70	-113	-
Net Cash Flow	Rs m	-4	2	-

Current Valuations for EASTERN LOGICA INFOWAY LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 12.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 250.3, stands at 52.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 144.5 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	2,472.6	622.4
TTM Earnings per share	Rs	12.3	4.7
Diluted earnings per share	Rs	2.1	4.7
Price to Cash Flow	x	18.3	144.5
TTM P/E ratio	x	19.3	52.9
Price / Book Value ratio	x	1.3	19.4
Market Cap	Rs m	690	11,909
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EASTERN LOGICA INFOWAY LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.4x 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 2.1x during FY24, from 1.7x 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 13.2% during FY24, from 6.6% 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 improved and stood at 33.0% during FY24, from 20.6% 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 improved and stood at 8.2% during FY24, from 6.7% 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	1.4	1.2
Debtors’ Days	Days	354	277
Interest coverage	x	1.7	2.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.7	8.2
Return on equity	%	6.6	13.2
Return on capital employed	%	20.6	33.0

To see how EASTERN LOGICA INFOWAY LTD. has performed over the last 5 years, please visit here.

EASTERN LOGICA INFOWAY LTD. Share Price Performance

Over the last one year, EASTERN LOGICA INFOWAY LTD. share price has moved up from Rs 49.3 to Rs 250.3, registering a gain of Rs 200.9 or around 407.3%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

(To know more, check out historical annual results for EASTERN LOGICA INFOWAY LTD. and quarterly results for EASTERN LOGICA INFOWAY LTD.)