ORACLE FINANCIAL 2023-24 Annual Report Analysis

Fri, 28 Jun

ORACLE FINANCIAL 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.

ORACLE FINANCIAL Income Statement Analysis

• Operating income during the year rose 11.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 43.4% in FY24 as against 43.1% in FY23.
• Depreciation charges decreased by 7.9% and finance costs increased by 122.1% YoY, respectively.
• Other income grew by 71.8% YoY.
• Net profit for the year grew by 22.9% YoY.
• Net profit margins during the year grew from 31.7% in FY23 to 34.8% in FY24.

ORACLE FINANCIAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,983	63,730	11.8%
Other income	Rs m	2,075	3,565	71.8%
Total Revenues	Rs m	59,059	67,295	13.9%
Gross profit	Rs m	24,557	27,682	12.7%
Depreciation	Rs m	807	743	-7.9%
Interest	Rs m	127	281	122.1%
Profit before tax	Rs m	25,699	30,223	17.6%
Tax	Rs m	7,638	8,030	5.1%
Profit after tax	Rs m	18,061	22,194	22.9%
Gross profit margin	%	43.1	43.4
Effective tax rate	%	29.7	26.6
Net profit margin	%	31.7	34.8

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

ORACLE FINANCIAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 17.0%.
• Current assets rose 7% and stood at Rs 77 billion, while fixed assets rose 8% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 97 billion as against Rs 91 billion during FY23, thereby witnessing a growth of 7%.

ORACLE FINANCIAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	73,056	77,259	5.8
Current Liabilities	Rs m	10,941	12,798	17.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	91,188	97,494	6.9
Current assets	Rs m	71,689	76,514	6.7
Fixed Assets	Rs m	19,499	20,980	7.6
Total Assets	Rs m	91,188	97,494	6.9

ORACLE FINANCIAL Cash Flow Statement Analysis

• ORACLE FINANCIAL's cash flow from operating activities (CFO) during FY24 stood at Rs 18 billion, an improvement of 1.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 16 billion, an improvement of 1,065.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -20 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 14 billion from the Rs 4 billion net cash flows seen during FY23.

ORACLE FINANCIAL 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	17,584	17,907	1.8%
Cash Flow from Investing Activities	Rs m	1,371	15,980	1,065.2%
Cash Flow from Financing Activities	Rs m	-16,655	-19,585	-
Net Cash Flow	Rs m	3,601	14,432	300.8%

Current Valuations for ORACLE FINANCIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 256.1, an improvement from the EPS of Rs 209.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,879.5, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 13.4 times.
• The company's price to cash flow (P/CF) ratio stood at 22.9 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	659.5	735.3
TTM Earnings per share	Rs	209.0	256.1
Diluted earnings per share	Rs	208.3	255.9
Price to Cash Flow	x	15.0	22.9
TTM P/E ratio	x	15.7	38.6
Price / Book Value ratio	x	3.9	6.8
Market Cap	Rs m	286,556	525,172
Dividends per share (Unadj.)	Rs	225.0	240.0

Ratio Analysis for ORACLE FINANCIAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.0x during FY24, from 6.6x 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 deteriorated and stood at 108.5x during FY24, from 204.1x 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 28.7% during FY24, from 24.7% 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 improved and stood at 39.5% during FY24, from 35.4% 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 23.1% during FY24, from 19.9% 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	6.6	6.0
Debtors’ Days	Days	69	76
Interest coverage	x	204.1	108.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.9	23.1
Return on equity	%	24.7	28.7
Return on capital employed	%	35.4	39.5

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

ORACLE FINANCIAL Share Price Performance

Over the last one year, ORACLE FINANCIAL share price has moved up from Rs 3,840.5 to Rs 9,879.5, registering a gain of Rs 6,039.1 or around 157.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,926.6 (up 1.7%). Over the last one year it has moved up from 29,192.0 to 36,926.6, a gain of 7,735 points (up 26.5%).

Overall, the S&P BSE SENSEX is up 25.8% over the year.

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