KERNEX MICROSYS 2023-24 Annual Report Analysis

Wed, 16 Oct

KERNEX MICROSYS 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.

KERNEX MICROSYS Income Statement Analysis

• Operating income during the year rose 377.7% 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 down at 90.3% in FY24 as against 416.3% in FY23.
• Depreciation charges decreased by 2.0% and finance costs increased by 18.2% YoY, respectively.
• Other income grew by 1.7% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 495.6% in FY23 to 105.7% in FY24.

KERNEX MICROSYS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40	193	377.7%
Other income	Rs m	20	20	1.7%
Total Revenues	Rs m	60	213	253.9%
Gross profit	Rs m	-168	-174	NA
Depreciation	Rs m	24	23	-2.0%
Interest	Rs m	23	27	18.2%
Profit before tax	Rs m	-195	-205	NA
Tax	Rs m	5	-1	NA
Profit after tax	Rs m	-200	-204	NA
Gross profit margin	%	-416.3	-90.3
Effective tax rate	%	-2.4	0.4
Net profit margin	%	-495.6	-105.7

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KERNEX MICROSYS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 497 million as compared to Rs 175 million in FY23, thereby witnessing an increase of 183.3%.
• Long-term debt down at Rs 2 million as compared to Rs 5 million during FY23, a fall of 61.1%.
• Current assets rose 64% and stood at Rs 1 billion, while fixed assets rose 85% and stood at Rs 529 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 70%.

KERNEX MICROSYS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	821	1,218	48.3
Current Liabilities	Rs m	175	497	183.3
Long-term Debt	Rs m	5	2	-61.1
Total Liabilities	Rs m	1,016	1,729	70.1
Current assets	Rs m	730	1,199	64.3
Fixed Assets	Rs m	287	529	84.7
Total Assets	Rs m	1,016	1,729	70.1

KERNEX MICROSYS Cash Flow Statement Analysis

• KERNEX MICROSYS's cash flow from operating activities (CFO) during FY24 stood at Rs -697 million, an improvement of 117.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -48 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 633 million, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -113 million from the Rs 131 million net cash flows seen during FY23.

KERNEX MICROSYS 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	-321	-697	-
Cash Flow from Investing Activities	Rs m	0	-48	-
Cash Flow from Financing Activities	Rs m	451	633	40.1%
Net Cash Flow	Rs m	131	-113	-

Current Valuations for KERNEX MICROSYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.2, an improvement from the EPS of Rs -12.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 788.5, stands at -59.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.8 times, while the price to sales ratio stands at 68.5 times.
• The company's price to cash flow (P/CF) ratio stood at -43.7 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	2.6	11.5
TTM Earnings per share	Rs	-12.9	-12.2
Diluted earnings per share	Rs	-11.9	-12.2
Price to Cash Flow	x	-23.4	-43.7
TTM P/E ratio	x	-20.6	-59.5
Price / Book Value ratio	x	5.0	6.5
Market Cap	Rs m	4,123	7,902
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KERNEX MICROSYS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 4.2x 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 -6.5x during FY24, from -7.4x 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 -16.8% during FY24, from -24.4% 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 -14.5% during FY24, from -20.8% 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 improved and stood at -10.2% during FY24, from -17.4% 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	4.2	2.4
Debtors’ Days	Days	8,264	69
Interest coverage	x	-7.4	-6.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-17.4	-10.2
Return on equity	%	-24.4	-16.8
Return on capital employed	%	-20.8	-14.5

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

KERNEX MICROSYS Share Price Performance

Over the last one year, KERNEX MICROSYS share price has moved up from Rs 538.1 to Rs 788.5, registering a gain of Rs 250.4 or around 46.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 43,018.4 (down 0.3%). Over the last one year it has moved up from 32,175.6 to 43,018.4, a gain of 10,843 points (up 33.7%).

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

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