LATENT VIEW ANALYTICS 2023-24 Annual Report Analysis

Thu, 8 Aug

LATENT VIEW ANALYTICS 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.

LATENT VIEW ANALYTICS Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.3% in FY24 as against 26.9% in FY23.
• Depreciation charges increased by 9.6% and finance costs increased by 20.2% YoY, respectively.
• Other income grew by 32.2% YoY.
• Net profit for the year grew by 2.1% YoY.
• Net profit margins during the year declined from 28.8% in FY23 to 24.8% in FY24.

LATENT VIEW ANALYTICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,388	6,407	18.9%
Other income	Rs m	558	737	32.2%
Total Revenues	Rs m	5,945	7,144	20.2%
Gross profit	Rs m	1,452	1,363	-6.1%
Depreciation	Rs m	88	97	9.6%
Interest	Rs m	28	33	20.2%
Profit before tax	Rs m	1,894	1,970	4.0%
Tax	Rs m	339	384	13.1%
Profit after tax	Rs m	1,554	1,586	2.1%
Gross profit margin	%	26.9	21.3
Effective tax rate	%	17.9	19.5
Net profit margin	%	28.8	24.8

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

LATENT VIEW ANALYTICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 530 million as compared to Rs 340 million in FY23, thereby witnessing an increase of 56.2%.
• Long-term debt down at Rs 2 million as compared to Rs 3 million during FY23, a fall of 27.1%.
• Current assets rose 13% and stood at Rs 11 billion, while fixed assets rose 27% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 16%.

LATENT VIEW ANALYTICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,025	13,679	13.8
Current Liabilities	Rs m	340	530	56.2
Long-term Debt	Rs m	3	2	-27.1
Total Liabilities	Rs m	12,440	14,451	16.2
Current assets	Rs m	9,424	10,626	12.8
Fixed Assets	Rs m	3,016	3,825	26.8
Total Assets	Rs m	12,440	14,451	16.2

LATENT VIEW ANALYTICS Cash Flow Statement Analysis

• LATENT VIEW ANALYTICS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 18.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -37 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 million, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -2 billion net cash flows seen during FY23.

LATENT VIEW ANALYTICS 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	974	1,154	18.4%
Cash Flow from Investing Activities	Rs m	-2,849	-37	-
Cash Flow from Financing Activities	Rs m	-41	-11	-
Net Cash Flow	Rs m	-1,834	1,115	-

Current Valuations for LATENT VIEW ANALYTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an improvement from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 496.0, stands at 62.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 15.9 times.
• The company's price to cash flow (P/CF) ratio stood at 53.0 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	26.3	31.1
TTM Earnings per share	Rs	7.6	7.7
Diluted earnings per share	Rs	7.5	7.7
Price to Cash Flow	x	40.3	53.0
TTM P/E ratio	x	42.6	62.0
Price / Book Value ratio	x	7.3	6.5
Market Cap	Rs m	87,247	89,208
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LATENT VIEW ANALYTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 20.0x during FY24, from 27.8x 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 60.6x during FY24, from 69.9x 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 11.6% during FY24, from 12.9% 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 14.6% during FY24, from 16.0% 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 11.2% during FY24, from 12.7% 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	27.8	20.0
Debtors’ Days	Days	67	64
Interest coverage	x	69.9	60.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.7	11.2
Return on equity	%	12.9	11.6
Return on capital employed	%	16.0	14.6

To see how LATENT VIEW ANALYTICS has performed over the last 5 years, please visit here.

LATENT VIEW ANALYTICS Share Price Performance

Over the last one year, LATENT VIEW ANALYTICS share price has moved up from Rs 379.8 to Rs 496.0, registering a gain of Rs 116.2 or around 30.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 39,538.9 (down 1.0%). Over the last one year it has moved up from 31,105.6 to 39,538.9, a gain of 8,433 points (up 27.1%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for LATENT VIEW ANALYTICS and quarterly results for LATENT VIEW ANALYTICS)