CYIENT 2023-24 Annual Report Analysis

Tue, 11 Jun

CYIENT 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.

CYIENT Income Statement Analysis

• Operating income during the year rose 18.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY24 as against 15.9% in FY23.
• Depreciation charges increased by 3.9% and finance costs increased by 16.0% YoY, respectively.
• Other income declined by 1.8% YoY.
• Net profit for the year grew by 36.6% YoY.
• Net profit margins during the year grew from 8.6% in FY23 to 9.8% in FY24.

CYIENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	60,159	71,472	18.8%
Other income	Rs m	814	799	-1.8%
Total Revenues	Rs m	60,973	72,271	18.5%
Gross profit	Rs m	9,564	12,212	27.7%
Depreciation	Rs m	2,566	2,667	3.9%
Interest	Rs m	1,000	1,160	16.0%
Profit before tax	Rs m	6,812	9,184	34.8%
Tax	Rs m	1,668	2,156	29.3%
Profit after tax	Rs m	5,144	7,028	36.6%
Gross profit margin	%	15.9	17.1
Effective tax rate	%	24.5	23.5
Net profit margin	%	8.6	9.8

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

CYIENT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 17 billion as compared to Rs 20 billion in FY23, thereby witnessing an decrease of -18.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 5 billion during FY23, a fall of 43.7%.
• Current assets rose 12% and stood at Rs 36 billion, while fixed assets rose 2% and stood at Rs 34 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 69 billion as against Rs 65 billion during FY23, thereby witnessing a growth of 7%.

CYIENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	34,179	42,009	22.9
Current Liabilities	Rs m	20,231	16,581	-18.0
Long-term Debt	Rs m	4,939	2,783	-43.7
Total Liabilities	Rs m	64,999	69,284	6.6
Current assets	Rs m	31,913	35,591	11.5
Fixed Assets	Rs m	33,086	33,693	1.8
Total Assets	Rs m	64,999	69,284	6.6

CYIENT Cash Flow Statement Analysis

• CYIENT's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 31.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -772 million from the Rs -6 billion net cash flows seen during FY23.

CYIENT 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	5,539	7,261	31.1%
Cash Flow from Investing Activities	Rs m	-10,327	-5,327	-
Cash Flow from Financing Activities	Rs m	-1,093	-2,662	-
Net Cash Flow	Rs m	-5,616	-772	-

Current Valuations for CYIENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.4, an improvement from the EPS of Rs 46.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,878.0, stands at 29.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	544.0	644.5
TTM Earnings per share	Rs	46.5	63.4
Diluted earnings per share	Rs	46.4	63.4
Price to Cash Flow	x	14.3	19.7
TTM P/E ratio	x	21.4	29.6
Price / Book Value ratio	x	2.9	4.5
Market Cap	Rs m	97,640	191,002
Dividends per share (Unadj.)	Rs	26.0	30.0

Ratio Analysis for CYIENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.6x 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 8.9x during FY24, from 7.8x 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 16.7% during FY24, from 15.1% 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 23.1% during FY24, from 20.0% 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 11.8% during FY24, from 9.5% 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	1.6	2.1
Debtors’ Days	Days	68	64
Interest coverage	x	7.8	8.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.5	11.8
Return on equity	%	15.1	16.7
Return on capital employed	%	20.0	23.1

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

CYIENT Share Price Performance

Over the last one year, CYIENT share price has moved up from Rs 1,384.4 to Rs 1,878.0, registering a gain of Rs 493.6 or around 35.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 35,446.5 (up 0.2%). Over the last one year it has moved up from 28,654.4 to 35,446.5, a gain of 6,792 points (up 23.7%).

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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