GLOBAL EDUCATION 2023-24 Annual Report Analysis

Mon, 10 Jun

GLOBAL EDUCATION 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.

GLOBAL EDUCATION Income Statement Analysis

• Operating income during the year rose 19.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 63.1% in FY24 as against 55.5% in FY23.
• Depreciation charges decreased by 31.1% and finance costs increased by 20.0% YoY, respectively.
• Other income grew by 1.1% YoY.
• Net profit for the year grew by 49.2% YoY.
• Net profit margins during the year grew from 36.4% in FY23 to 45.4% in FY24.

GLOBAL EDUCATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	620	743	19.9%
Other income	Rs m	22	23	1.1%
Total Revenues	Rs m	642	766	19.2%
Gross profit	Rs m	344	469	36.5%
Depreciation	Rs m	63	43	-31.1%
Interest	Rs m	0	0	20.0%
Profit before tax	Rs m	303	448	47.9%
Tax	Rs m	77	111	44.1%
Profit after tax	Rs m	226	337	49.2%
Gross profit margin	%	55.5	63.1
Effective tax rate	%	25.5	24.8
Net profit margin	%	36.4	45.4

Don't Miss: Key Information for Long-term Investors

GLOBAL EDUCATION Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 80 million as compared to Rs 83 million in FY23, thereby witnessing an decrease of -2.5%.
• Current assets rose 45% and stood at Rs 565 million, while fixed assets rose 17% and stood at Rs 396 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 961 million as against Rs 726 million during FY23, thereby witnessing a growth of 32%.

GLOBAL EDUCATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	653	890	36.2
Current Liabilities	Rs m	83	80	-2.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	726	961	32.3
Current assets	Rs m	389	565	45.1
Fixed Assets	Rs m	337	396	17.5
Total Assets	Rs m	726	961	32.3

GLOBAL EDUCATION Cash Flow Statement Analysis

• GLOBAL EDUCATION's cash flow from operating activities (CFO) during FY24 stood at Rs 221 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -128 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -102 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -9 million from the Rs 55 million net cash flows seen during FY23.

GLOBAL EDUCATION 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	257	221	-14.1%
Cash Flow from Investing Activities	Rs m	-162	-128	-
Cash Flow from Financing Activities	Rs m	-40	-102	-
Net Cash Flow	Rs m	55	-9	-

Current Valuations for GLOBAL EDUCATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an improvement from the EPS of Rs 11.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 200.0, stands at 13.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 5.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	30.4	36.5
TTM Earnings per share	Rs	11.1	16.6
Diluted earnings per share	Rs	11.1	16.6
Price to Cash Flow	x	0.0	15.6
TTM P/E ratio	x	0.0	13.2
Price / Book Value ratio	x	5.4	6.7
Market Cap	Rs m	3,506	5,922
Dividends per share (Unadj.)	Rs	2.5	5.0

Ratio Analysis for GLOBAL EDUCATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.0x during FY24, from 4.7x 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 3,736.6x during FY24, from 3,031.9x 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 improved and stood at 37.9% during FY24, from 34.6% 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 50.4% during FY24, from 46.4% 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 35.1% during FY24, from 31.1% 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	4.7	7.0
Debtors’ Days	Days	843	1,312
Interest coverage	x	3,031.9	3,736.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	31.1	35.1
Return on equity	%	34.6	37.9
Return on capital employed	%	46.4	50.4

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

GLOBAL EDUCATION Share Price Performance

Over the last one year, GLOBAL EDUCATION 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 0.3% over the year.

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