KFIN TECHNOLOGIES 2023-24 Annual Report Analysis

Mon, 5 Aug

KFIN 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.

KFIN TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 16.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.9% in FY24 as against 41.0% in FY23.
• Depreciation charges increased by 13.6% and finance costs decreased by 20.6% YoY, respectively.
• Other income grew by 42.4% YoY.
• Net profit for the year grew by 25.7% YoY.
• Net profit margins during the year grew from 27.2% in FY23 to 29.4% in FY24.

KFIN TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,200	8,375	16.3%
Other income	Rs m	206	294	42.4%
Total Revenues	Rs m	7,407	8,669	17.0%
Gross profit	Rs m	2,950	3,596	21.9%
Depreciation	Rs m	467	530	13.6%
Interest	Rs m	107	85	-20.6%
Profit before tax	Rs m	2,582	3,274	26.8%
Tax	Rs m	625	813	30.2%
Profit after tax	Rs m	1,957	2,460	25.7%
Gross profit margin	%	41.0	42.9
Effective tax rate	%	24.2	24.8
Net profit margin	%	27.2	29.4

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KFIN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -47.8%.
• Current assets rose 4% and stood at Rs 7 billion, while fixed assets rose 14% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 10%.

KFIN TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,556	11,309	32.2
Current Liabilities	Rs m	4,333	2,262	-47.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,955	16,390	9.6
Current assets	Rs m	6,757	7,023	3.9
Fixed Assets	Rs m	8,199	9,366	14.2
Total Assets	Rs m	14,955	16,390	9.6

KFIN TECHNOLOGIES Cash Flow Statement Analysis

• KFIN TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 29.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -154 million from the Rs 268 million net cash flows seen during FY23.

KFIN 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	2,234	2,893	29.5%
Cash Flow from Investing Activities	Rs m	-2,044	-1,776	-
Cash Flow from Financing Activities	Rs m	73	-1,267	-
Net Cash Flow	Rs m	268	-154	-

Current Valuations for KFIN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.4, an improvement from the EPS of Rs 11.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 822.2, stands at 51.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.5 times, while the price to sales ratio stands at 16.8 times.
• The company's price to cash flow (P/CF) ratio stood at 28.8 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	42.5	49.0
TTM Earnings per share	Rs	11.6	14.4
Diluted earnings per share	Rs	11.4	14.4
Price to Cash Flow	x	19.8	28.8
TTM P/E ratio	x	24.5	51.7
Price / Book Value ratio	x	6.4	7.6
Market Cap	Rs m	54,445	86,242
Dividends per share (Unadj.)	Rs	0.0	5.8

Ratio Analysis for KFIN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x 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 39.5x during FY24, from 25.1x 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 declined and down at 21.8% during FY24, from 22.9% 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 29.7% during FY24, from 31.4% 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 15.5% during FY24, from 13.8% 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	1.6	3.1
Debtors’ Days	Days	64	66
Interest coverage	x	25.1	39.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.8	15.5
Return on equity	%	22.9	21.8
Return on capital employed	%	31.4	29.7

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

KFIN TECHNOLOGIES Share Price Performance

Over the last one year, KFIN TECHNOLOGIES share price has moved up from Rs 389.6 to Rs 822.2, registering a gain of Rs 432.7 or around 111.1%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

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