WAAREE TECHNOLOGIES 2023-24 Annual Report Analysis

Wed, 16 Oct

WAAREE TECHNOLOGIES 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.

WAAREE TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 2.9% 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 27.5% in FY24 as against 3.6% in FY23.
• Depreciation charges increased by 221.9% and finance costs increased by 208.2% YoY, respectively.
• Other income grew by 11.1% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 3.7% in FY23 to 26.3% in FY24.

WAAREE TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	294	285	-2.9%
Other income	Rs m	3	4	11.1%
Total Revenues	Rs m	297	289	-2.7%
Gross profit	Rs m	-10	-79	NA
Depreciation	Rs m	7	22	221.9%
Interest	Rs m	1	2	208.2%
Profit before tax	Rs m	-15	-99	NA
Tax	Rs m	-4	-24	NA
Profit after tax	Rs m	-11	-75	NA
Gross profit margin	%	-3.6	-27.5
Effective tax rate	%	26.4	24.2
Net profit margin	%	-3.7	-26.3

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WAAREE TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 209 million as compared to Rs 216 million in FY23, thereby witnessing an decrease of -3.4%.
• Current assets fell 34% and stood at Rs 158 million, while fixed assets fell 26% and stood at Rs 62 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 220 million as against Rs 325 million during FY23, thereby witnessing a fall of 32%.

WAAREE TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	112	37	-66.7
Current Liabilities	Rs m	216	209	-3.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	325	220	-32.4
Current assets	Rs m	241	158	-34.4
Fixed Assets	Rs m	84	62	-26.5
Total Assets	Rs m	325	220	-32.4

WAAREE TECHNOLOGIES Cash Flow Statement Analysis

• WAAREE TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs -151 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 146 million, an improvement of 384% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs 33 million net cash flows seen during FY23.

WAAREE TECHNOLOGIES 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	92	-151	-
Cash Flow from Investing Activities	Rs m	-89	2	-
Cash Flow from Financing Activities	Rs m	30	146	384.2%
Net Cash Flow	Rs m	33	-3	-

Current Valuations for WAAREE TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.0, an decline from the EPS of Rs -1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 895.0, stands at -128.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 257.7 times, while the price to sales ratio stands at 33.8 times.
• The company's price to cash flow (P/CF) ratio stood at -207.7 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	27.3	26.5
TTM Earnings per share	Rs	-1.0	-7.0
Diluted earnings per share	Rs	-1.0	-7.0
Price to Cash Flow	x	-684.8	-207.7
TTM P/E ratio	x	-258.2	-128.5
Price / Book Value ratio	x	17.1	295.4
Market Cap	Rs m	1,923	11,051
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WAAREE TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 1.1x 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 -43.0x during FY24, from -19.2x 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 -200.5% during FY24, from -9.7% 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 -258.5% during FY24, from -12.5% 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 -33.1% during FY24, from -3.1% 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	1.1	0.8
Debtors’ Days	Days	38	27
Interest coverage	x	-19.2	-43.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-3.1	-33.1
Return on equity	%	-9.7	-200.5
Return on capital employed	%	-12.5	-258.5

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

WAAREE TECHNOLOGIES Share Price Performance

Over the last one year, WAAREE TECHNOLOGIES share price has moved up from Rs 463.1 to Rs 895.0, registering a gain of Rs 432.0 or around 93.3%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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