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CE INFO SYSTEMS 2023-24 Annual Report Analysis

Fri, 19 Jul

CE INFO SYSTEMS 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.

CE INFO SYSTEMS Income Statement Analysis

• Operating income during the year rose 34.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 40.3% in FY24 as against 40.8% in FY23.
• Depreciation charges increased by 49.6% and finance costs increased by 5.0% YoY, respectively.
• Other income grew by 7.3% YoY.
• Net profit for the year grew by 25.0% YoY.
• Net profit margins during the year declined from 38.2% in FY23 to 35.4% in FY24.

CE INFO SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,815	3,794	34.8%
Other income	Rs m	372	399	7.3%
Total Revenues	Rs m	3,187	4,194	31.6%
Gross profit	Rs m	1,148	1,529	33.3%
Depreciation	Rs m	99	148	49.6%
Interest	Rs m	28	29	5.0%
Profit before tax	Rs m	1,393	1,751	25.8%
Tax	Rs m	317	407	28.4%
Profit after tax	Rs m	1,075	1,344	25.0%
Gross profit margin	%	40.8	40.3
Effective tax rate	%	22.8	23.3
Net profit margin	%	38.2	35.4

For Investors: Our Big Prediction

CE INFO SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 5.3%.
• Current assets fell 2% and stood at Rs 4 billion, while fixed assets rose 56% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 18%.

CE INFO SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,254	6,432	22.4
Current Liabilities	Rs m	1,134	1,193	5.3
Long-term Debt	Rs m	15	0	-100.0
Total Liabilities	Rs m	6,639	7,812	17.7
Current assets	Rs m	4,414	4,343	-1.6
Fixed Assets	Rs m	2,225	3,470	55.9
Total Assets	Rs m	6,639	7,812	17.7

CE INFO SYSTEMS Cash Flow Statement Analysis

• CE INFO SYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 755 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -587 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -195 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -26 million from the Rs 355 million net cash flows seen during FY23.

CE INFO SYSTEMS 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	899	755	-16.0%
Cash Flow from Investing Activities	Rs m	-633	-587	-
Cash Flow from Financing Activities	Rs m	83	-195	-
Net Cash Flow	Rs m	355	-26	-

Current Valuations for CE INFO SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.9, an improvement from the EPS of Rs 20.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,374.9, stands at 94.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 20.0 times, while the price to sales ratio stands at 33.8 times.
• The company's price to cash flow (P/CF) ratio stood at 60.2 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	52.5	70.2
TTM Earnings per share	Rs	20.0	24.9
Diluted earnings per share	Rs	19.9	24.9
Price to Cash Flow	x	45.6	60.2
TTM P/E ratio	x	49.7	94.5
Price / Book Value ratio	x	13.8	14.0
Market Cap	Rs m	72,490	89,853
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for CE INFO SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY24, from 3.9x 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 60.8x during FY24, from 50.9x 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 improved and stood at 20.9% during FY24, from 20.5% 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 27.7% during FY24, from 27.0% 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 17.6% during FY24, from 16.6% 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	3.9	3.6
Debtors’ Days	Days	756	1,007
Interest coverage	x	50.9	60.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.6	17.6
Return on equity	%	20.5	20.9
Return on capital employed	%	27.0	27.7

To see how CE INFO SYSTEMS has performed over the last 5 years, please visit here.

CE INFO SYSTEMS Share Price Performance

Over the last one year, CE INFO SYSTEMS share price has moved up from Rs 1,457.9 to Rs 2,374.9, registering a gain of Rs 917.1 or around 62.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 40,707.8 (up 1.8%). Over the last one year it has moved up from 31,740.5 to 40,707.8, a gain of 8,967 points (up 28.3%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for CE INFO SYSTEMS and quarterly results for CE INFO SYSTEMS)