GENESYS INTL. 2023-24 Annual Report Analysis

Tue, 24 Sep

GENESYS INTL. 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.

GENESYS INTL. Income Statement Analysis

• Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 38.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.0% in FY24 as against 32.4% in FY23.
• Depreciation charges increased by 19.5% and finance costs increased by 55.1% YoY, respectively.
• Other income declined by 22.7% YoY.
• Net profit for the year grew by 44.7% YoY.
• Net profit margins during the year grew from 8.2% in FY23 to 10.9% in FY24.

GENESYS INTL. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,811	1,982	9.4%
Other income	Rs m	65	50	-22.7%
Total Revenues	Rs m	1,876	2,033	8.3%
Gross profit	Rs m	586	812	38.4%
Depreciation	Rs m	372	445	19.5%
Interest	Rs m	29	46	55.1%
Profit before tax	Rs m	250	372	48.7%
Tax	Rs m	101	156	54.6%
Profit after tax	Rs m	149	216	44.7%
Gross profit margin	%	32.4	41.0
Effective tax rate	%	40.3	41.9
Net profit margin	%	8.2	10.9

Dear Reader: If You Invest in Midcap Stocks, this is for You

GENESYS INTL. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 691 million in FY23, thereby witnessing an increase of 59.8%.
• Long-term debt stood at Rs 221 million as compared to Rs 173 million during FY23, a growth of 27.6%.
• Current assets rose 37% and stood at Rs 3 billion, while fixed assets rose 23% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 30%.

GENESYS INTL. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,833	4,834	26.1
Current Liabilities	Rs m	691	1,104	59.8
Long-term Debt	Rs m	173	221	27.6
Total Liabilities	Rs m	4,825	6,263	29.8
Current assets	Rs m	2,434	3,329	36.7
Fixed Assets	Rs m	2,390	2,934	22.8
Total Assets	Rs m	4,825	6,263	29.8

GENESYS INTL. Cash Flow Statement Analysis

• GENESYS INTL.'s cash flow from operating activities (CFO) during FY24 stood at Rs 191 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -796 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 712 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 107 million from the Rs -88 million net cash flows seen during FY23.

GENESYS INTL. 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	-352	191	-
Cash Flow from Investing Activities	Rs m	-1,885	-796	-
Cash Flow from Financing Activities	Rs m	2,149	712	-66.8%
Net Cash Flow	Rs m	-88	107	-

Current Valuations for GENESYS INTL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 780.0, stands at 95.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 15.6 times.
• The company's price to cash flow (P/CF) ratio stood at 27.9 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	48.0	50.1
TTM Earnings per share	Rs	4.0	5.5
Diluted earnings per share	Rs	3.8	5.5
Price to Cash Flow	x	25.0	27.9
TTM P/E ratio	x	87.3	95.5
Price / Book Value ratio	x	4.8	3.8
Market Cap	Rs m	18,413	18,446
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GENESYS INTL.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY24, from 3.5x 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 9.2x during FY24, from 9.5x 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 4.5% during FY24, from 3.9% 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 8.3% during FY24, from 7.0% 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 4.2% during FY24, from 3.7% 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	3.5	3.0
Debtors’ Days	Days	1,677	2,627
Interest coverage	x	9.5	9.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	4.2
Return on equity	%	3.9	4.5
Return on capital employed	%	7.0	8.3

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

GENESYS INTL. Share Price Performance

Over the last one year, GENESYS INTL. share price has moved up from Rs 360.7 to Rs 780.0, registering a gain of Rs 419.3 or around 116.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,353.4 (down 0.5%). Over the last one year it has moved up from 32,993.5 to 42,353.4, a gain of 9,360 points (up 28.4%).

Overall, the S&P BSE SENSEX is up 27.3% over the year.

(To know more, check out historical annual results for GENESYS INTL. and quarterly results for GENESYS INTL.)