IDEAFORGE TECHNOLOGY 2023-24 Annual Report Analysis

Tue, 16 Jul

IDEAFORGE TECHNOLOGY 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.

IDEAFORGE TECHNOLOGY Income Statement Analysis

• Operating income during the year rose 68.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.0% in FY24 as against 25.8% in FY23.
• Depreciation charges increased by 78.5% and finance costs decreased by 19.0% YoY, respectively.
• Other income grew by 192.6% YoY.
• Net profit for the year grew by 41.5% YoY.
• Net profit margins during the year declined from 17.2% in FY23 to 14.4% in FY24.

IDEAFORGE TECHNOLOGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,860	3,140	68.8%
Other income	Rs m	104	304	192.6%
Total Revenues	Rs m	1,964	3,444	75.4%
Gross profit	Rs m	481	565	17.6%
Depreciation	Rs m	119	212	78.5%
Interest	Rs m	58	47	-19.0%
Profit before tax	Rs m	408	611	49.7%
Tax	Rs m	88	158	79.4%
Profit after tax	Rs m	320	453	41.5%
Gross profit margin	%	25.8	18.0
Effective tax rate	%	21.6	25.9
Net profit margin	%	17.2	14.4

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IDEAFORGE TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 685 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -54.2%.
• Current assets rose 57% and stood at Rs 6 billion, while fixed assets rose 32% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 52%.

IDEAFORGE TECHNOLOGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,943	6,510	121.2
Current Liabilities	Rs m	1,494	685	-54.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,827	7,331	51.9
Current assets	Rs m	3,837	6,024	57.0
Fixed Assets	Rs m	990	1,307	32.0
Total Assets	Rs m	4,827	7,331	51.9

IDEAFORGE TECHNOLOGY Cash Flow Statement Analysis

• IDEAFORGE TECHNOLOGY's cash flow from operating activities (CFO) during FY24 stood at Rs 760 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -259 million net cash flows seen during FY23.

IDEAFORGE TECHNOLOGY 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	-532	760	-
Cash Flow from Investing Activities	Rs m	-1,489	-1,017	-
Cash Flow from Financing Activities	Rs m	1,762	1,895	7.5%
Net Cash Flow	Rs m	-259	1,638	-

Current Valuations for IDEAFORGE TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an decline from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 822.4, stands at 78.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 11.2 times.
• The company's price to cash flow (P/CF) ratio stood at 65.4 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	87.2	73.2
TTM Earnings per share	Rs	15.0	10.6
Diluted earnings per share	Rs	7.4	10.5
Price to Cash Flow	x	0.0	65.4
TTM P/E ratio	x	0.0	78.8
Price / Book Value ratio	x	0.0	6.7
Market Cap	Rs m	0	43,484
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IDEAFORGE TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.8x during FY24, from 2.6x 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 14.0x during FY24, from 8.0x 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 7.0% during FY24, from 10.9% 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 declined and down at 10.1% during FY24, from 15.8% 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 6.8% during FY24, from 7.8% 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	2.6	8.8
Debtors’ Days	Days	113	52
Interest coverage	x	8.0	14.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	6.8
Return on equity	%	10.9	7.0
Return on capital employed	%	15.8	10.1

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

IDEAFORGE TECHNOLOGY Share Price Performance

Over the last one year, IDEAFORGE TECHNOLOGY share price has moved down from Rs 1,203.4 to Rs 822.4, registering a loss of Rs 381.0 or around 31.7%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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