FDC 2023-24 Annual Report Analysis

Tue, 10 Sep

FDC 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.

FDC Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY24 as against 14.0% in FY23.
• Depreciation charges increased by 2.5% and finance costs decreased by 1.3% YoY, respectively.
• Other income grew by 98.4% YoY.
• Net profit for the year grew by 57.4% YoY.
• Net profit margins during the year grew from 10.9% in FY23 to 15.7% in FY24.

FDC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,838	19,429	8.9%
Other income	Rs m	512	1,016	98.4%
Total Revenues	Rs m	18,350	20,446	11.4%
Gross profit	Rs m	2,496	3,385	35.6%
Depreciation	Rs m	389	399	2.5%
Interest	Rs m	41	40	-1.3%
Profit before tax	Rs m	2,578	3,962	53.7%
Tax	Rs m	640	912	42.5%
Profit after tax	Rs m	1,938	3,051	57.4%
Gross profit margin	%	14.0	17.4
Effective tax rate	%	24.8	23.0
Net profit margin	%	10.9	15.7

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FDC Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -15.7%.
• Long-term debt down at Rs 2 million as compared to Rs 6 million during FY23, a fall of 56.1%.
• Current assets fell 5% and stood at Rs 14 billion, while fixed assets rose 12% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 32 billion during FY23, thereby witnessing a growth of 4%.

FDC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,820	20,972	5.8
Current Liabilities	Rs m	7,296	6,152	-15.7
Long-term Debt	Rs m	6	2	-56.1
Total Liabilities	Rs m	31,796	33,165	4.3
Current assets	Rs m	14,431	13,670	-5.3
Fixed Assets	Rs m	17,347	19,455	12.1
Total Assets	Rs m	31,796	33,165	4.3

FDC Cash Flow Statement Analysis

• FDC's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 42.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -171 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 15 million from the Rs -138 million net cash flows seen during FY23.

FDC 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	1,549	2,208	42.5%
Cash Flow from Investing Activities	Rs m	111	-171	-
Cash Flow from Financing Activities	Rs m	-1,800	-2,022	-
Net Cash Flow	Rs m	-138	15	-

Current Valuations for FDC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.7, an improvement from the EPS of Rs 11.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 578.4, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 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	107.5	119.3
TTM Earnings per share	Rs	11.7	18.7
Diluted earnings per share	Rs	11.9	18.7
Price to Cash Flow	x	17.9	17.6
TTM P/E ratio	x	21.5	30.0
Price / Book Value ratio	x	2.3	2.9
Market Cap	Rs m	45,368	60,606
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FDC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 2.0x 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 improved and stood at 99.2x during FY24, from 64.1x 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 improved and stood at 14.5% during FY24, from 9.8% 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 improved and stood at 19.1% during FY24, from 13.2% 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 improved and stood at 9.3% during FY24, from 6.2% 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	2.0	2.2
Debtors’ Days	Days	251	221
Interest coverage	x	64.1	99.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	9.3
Return on equity	%	9.8	14.5
Return on capital employed	%	13.2	19.1

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

FDC Share Price Performance

Over the last one year, FDC share price has moved up from Rs 397.8 to Rs 578.4, registering a gain of Rs 180.6 or around 45.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,879.3 (up 1.2%). Over the last one year it has moved up from 28,280.7 to 43,879.3, a gain of 15,599 points (up 55.2%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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