ESCONET TECHNOLOGIES LTD. 2023-24 Annual Report Analysis

Thu, 22 Aug

ESCONET TECHNOLOGIES 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.

ESCONET TECHNOLOGIES LTD. Income Statement Analysis

• Operating income during the year rose 48.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.1% in FY24 as against 6.4% in FY23.
• Depreciation charges increased by 29.7% and finance costs increased by 54.6% YoY, respectively.
• Other income declined by 21.5% YoY.
• Net profit for the year grew by 79.2% YoY.
• Net profit margins during the year grew from 3.2% in FY23 to 3.9% in FY24.

ESCONET TECHNOLOGIES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	947	1,406	48.5%
Other income	Rs m	3	2	-21.5%
Total Revenues	Rs m	950	1,408	48.2%
Gross profit	Rs m	60	100	64.8%
Depreciation	Rs m	8	10	29.7%
Interest	Rs m	12	18	54.6%
Profit before tax	Rs m	44	74	67.4%
Tax	Rs m	14	20	42.2%
Profit after tax	Rs m	30	54	79.2%
Gross profit margin	%	6.4	7.1
Effective tax rate	%	31.8	27.0
Net profit margin	%	3.2	3.9

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

ESCONET TECHNOLOGIES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 326 million as compared to Rs 198 million in FY23, thereby witnessing an increase of 64.5%.
• Long-term debt down at Rs 23 million as compared to Rs 32 million during FY23, a fall of 27.5%.
• Current assets rose 156% and stood at Rs 694 million, while fixed assets rose 76% and stood at Rs 27 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 721 million as against Rs 287 million during FY23, thereby witnessing a growth of 151%.

ESCONET TECHNOLOGIES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	55	369	566.9
Current Liabilities	Rs m	198	326	64.5
Long-term Debt	Rs m	32	23	-27.5
Total Liabilities	Rs m	287	721	151.3
Current assets	Rs m	271	694	155.6
Fixed Assets	Rs m	15	27	75.6
Total Assets	Rs m	287	721	151.3

ESCONET TECHNOLOGIES LTD. Cash Flow Statement Analysis

• ESCONET TECHNOLOGIES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -14 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -13 million, an improvement of 461.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 151 million, an improvement of 606% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 125 million from the Rs 1 million net cash flows seen during FY23.

ESCONET TECHNOLOGIES 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	-19	-14	-
Cash Flow from Investing Activities	Rs m	-2	-13	-
Cash Flow from Financing Activities	Rs m	21	151	605.6%
Net Cash Flow	Rs m	1	125	23,466.0%

Current Valuations for ESCONET TECHNOLOGIES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an decline from the EPS of Rs 39.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 332.5, stands at 75.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 38.6 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	1,229.4	113.7
TTM Earnings per share	Rs	39.4	4.4
Diluted earnings per share	Rs	2.5	4.4
Price to Cash Flow	x	0.0	38.6
TTM P/E ratio	x	0.0	75.7
Price / Book Value ratio	x	0.0	6.7
Market Cap	Rs m	0	2,477
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ESCONET TECHNOLOGIES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x 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 5.2x during FY24, from 4.9x 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 14.7% during FY24, from 54.8% 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 23.5% during FY24, from 64.2% 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 10.0% 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	1.4	2.1
Debtors’ Days	Days	485	969
Interest coverage	x	4.9	5.2
Debt to equity ratio	x	0.6	0.1
Return on assets	%	14.6	10.0
Return on equity	%	54.8	14.7
Return on capital employed	%	64.2	23.5

To see how ESCONET TECHNOLOGIES LTD. has performed over the last 5 years, please visit here.

ESCONET TECHNOLOGIES LTD. Share Price Performance

Over the last one year, ESCONET TECHNOLOGIES LTD. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.2% over the year.

(To know more, check out historical annual results for ESCONET TECHNOLOGIES LTD. and quarterly results for ESCONET TECHNOLOGIES LTD.)