FCS SOFTWARE 2023-24 Annual Report Analysis

Thu, 29 Aug

FCS SOFTWARE 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.

FCS SOFTWARE Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 30.4% in FY24 as against 16.9% in FY23.
• Depreciation charges decreased by 13.9% and finance costs increased by 264.6% YoY, respectively.
• Other income grew by 307.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.2% in FY23 to 32.8% in FY24.

FCS SOFTWARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	349	367	5.1%
Other income	Rs m	22	90	307.0%
Total Revenues	Rs m	371	457	23.1%
Gross profit	Rs m	59	-112	NA
Depreciation	Rs m	42	36	-13.9%
Interest	Rs m	17	63	264.6%
Profit before tax	Rs m	22	-121	NA
Tax	Rs m	7	0	NA
Profit after tax	Rs m	15	-120	NA
Gross profit margin	%	16.9	-30.4
Effective tax rate	%	33.3	0.4
Net profit margin	%	4.2	-32.8

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FCS SOFTWARE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 121 million as compared to Rs 105 million in FY23, thereby witnessing an increase of 15.2%.
• Current assets rose 173% and stood at Rs 285 million, while fixed assets rose 13% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 17%.

FCS SOFTWARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,588	4,286	19.4
Current Liabilities	Rs m	105	121	15.2
Long-term Debt	Rs m	153	0	-100.0
Total Liabilities	Rs m	3,886	4,544	16.9
Current assets	Rs m	104	285	173.0
Fixed Assets	Rs m	3,782	4,260	12.6
Total Assets	Rs m	3,886	4,544	16.9

FCS SOFTWARE Cash Flow Statement Analysis

• FCS SOFTWARE's cash flow from operating activities (CFO) during FY24 stood at Rs 151 million, an improvement of 563.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 91 million, an improvement of 342.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -250 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -8 million from the Rs -6 million net cash flows seen during FY23.

FCS SOFTWARE 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	23	151	563.9%
Cash Flow from Investing Activities	Rs m	21	91	342.4%
Cash Flow from Financing Activities	Rs m	-49	-250	-
Net Cash Flow	Rs m	-6	-8	-

Current Valuations for FCS SOFTWARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.8, stands at -66.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 17.7 times.
• The company's price to cash flow (P/CF) ratio stood at -88.2 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	0.2	0.2
TTM Earnings per share	Rs	0.0	-0.1
Diluted earnings per share	Rs	0.0	-0.1
Price to Cash Flow	x	60.8	-88.2
TTM P/E ratio	x	236.0	-66.0
Price / Book Value ratio	x	1.5	1.7
Market Cap	Rs m	5,206	7,437
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FCS SOFTWARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 1.0x 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 -0.9x during FY24, from 2.3x 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 -2.8% during FY24, from 0.4% 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 -1.3% during FY24, from 1.1% 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 -1.3% during FY24, from 0.8% 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	1.0	2.4
Debtors’ Days	Days	388	195
Interest coverage	x	2.3	-0.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.8	-1.3
Return on equity	%	0.4	-2.8
Return on capital employed	%	1.1	-1.3

To see how FCS SOFTWARE has performed over the last 5 years, please visit here.

FCS SOFTWARE Share Price Performance

Over the last one year, FCS SOFTWARE share price has moved up from Rs 2.3 to Rs 3.8, registering a gain of Rs 1.5 or around 62.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 43,101.9 (down 0.3%). Over the last one year it has moved up from 31,246.5 to 43,101.9, a gain of 11,855 points (up 37.9%).

Overall, the S&P BSE SENSEX is up 25.9% over the year.

(To know more, check out historical annual results for FCS SOFTWARE and quarterly results for FCS SOFTWARE)