KORE DIGITAL 2023-24 Annual Report Analysis

Wed, 9 Oct

KORE DIGITAL 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.

KORE DIGITAL Income Statement Analysis

• Operating income during the year rose 386.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 226.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY24 as against 22.3% in FY23.
• Depreciation charges increased by 73.0% and finance costs increased by 89.4% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 256.7% YoY.
• Net profit margins during the year declined from 15.1% in FY23 to 11.1% in FY24.

KORE DIGITAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	213	1,035	386.5%
Other income	Rs m	0	16	0.0%
Total Revenues	Rs m	213	1,051	393.9%
Gross profit	Rs m	47	155	226.7%
Depreciation	Rs m	3	4	73.0%
Interest	Rs m	2	3	89.4%
Profit before tax	Rs m	43	163	277.8%
Tax	Rs m	11	48	340.1%
Profit after tax	Rs m	32	115	256.7%
Gross profit margin	%	22.3	15.0
Effective tax rate	%	25.3	29.5
Net profit margin	%	15.1	11.1

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

KORE DIGITAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 767 million as compared to Rs 278 million in FY23, thereby witnessing an increase of 175.4%.
• Long-term debt down at Rs 4 million as compared to Rs 17 million during FY23, a fall of 76.2%.
• Current assets rose 345% and stood at Rs 1 billion, while fixed assets rose 172% and stood at Rs 119 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 360 million during FY23, thereby witnessing a growth of 324%.

KORE DIGITAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	57	735	1,180.2
Current Liabilities	Rs m	278	767	175.4
Long-term Debt	Rs m	17	4	-76.2
Total Liabilities	Rs m	360	1,527	324.3
Current assets	Rs m	316	1,408	345.3
Fixed Assets	Rs m	44	119	172.1
Total Assets	Rs m	360	1,527	324.3

KORE DIGITAL Cash Flow Statement Analysis

• KORE DIGITAL's cash flow from operating activities (CFO) during FY24 stood at Rs -83 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -75 million, an improvement of 141.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 560 million, an improvement of 3,828% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 402 million from the Rs -13 million net cash flows seen during FY23.

KORE DIGITAL 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	4	-83	-
Cash Flow from Investing Activities	Rs m	-31	-75	-
Cash Flow from Financing Activities	Rs m	14	560	3,828.3%
Net Cash Flow	Rs m	-13	402	-

Current Valuations for KORE DIGITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.7, an improvement from the EPS of Rs 12.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,280.0, stands at 79.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.4 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 27.6 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	84.4	258.1
TTM Earnings per share	Rs	12.8	28.7
Diluted earnings per share	Rs	8.0	28.7
Price to Cash Flow	x	0.0	27.6
TTM P/E ratio	x	0.0	79.5
Price / Book Value ratio	x	0.0	4.5
Market Cap	Rs m	0	3,287
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KORE DIGITAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.1x 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 49.1x 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 15.6% during FY24, from 56.1% 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 declined and down at 22.5% during FY24, from 60.0% 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 declined and down at 7.8% 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	1.1	1.8
Debtors’ Days	Days	2,352	1,732
Interest coverage	x	25.1	49.1
Debt to equity ratio	x	0.3	0.0
Return on assets	%	9.5	7.8
Return on equity	%	56.1	15.6
Return on capital employed	%	60.0	22.5

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

KORE DIGITAL Share Price Performance

Over the last one year, KORE DIGITAL share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.4% over the year.

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