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NETWEB TECHNOLOGIES 2023-24 Annual Report Analysis

Wed, 31 Jul

NETWEB 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.

NETWEB TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 62.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY24 as against 15.7% in FY23.
• Depreciation charges increased by 71.0% and finance costs increased by 52.4% YoY, respectively.
• Other income grew by 1653.2% YoY.
• Net profit for the year grew by 61.7% YoY.
• Net profit margins during the year declined from 10.5% in FY23 to 10.5% in FY24.

NETWEB TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,450	7,241	62.7%
Other income	Rs m	7	119	1,653.2%
Total Revenues	Rs m	4,457	7,360	65.1%
Gross profit	Rs m	700	1,025	46.4%
Depreciation	Rs m	37	63	71.0%
Interest	Rs m	41	62	52.4%
Profit before tax	Rs m	630	1,020	61.9%
Tax	Rs m	160	261	62.6%
Profit after tax	Rs m	469	759	61.7%
Gross profit margin	%	15.7	14.2
Effective tax rate	%	25.5	25.6
Net profit margin	%	10.5	10.5

For Investors: Our Big Prediction

NETWEB TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 13.8%.
• Long-term debt down at Rs 13 million as compared to Rs 93 million during FY23, a fall of 86.3%.
• Current assets rose 135% and stood at Rs 6 billion, while fixed assets rose 90% and stood at Rs 515 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 131%.

NETWEB TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	913	4,152	354.6
Current Liabilities	Rs m	1,573	1,790	13.8
Long-term Debt	Rs m	93	13	-86.3
Total Liabilities	Rs m	2,653	6,116	130.5
Current assets	Rs m	2,382	5,600	135.2
Fixed Assets	Rs m	271	515	89.9
Total Assets	Rs m	2,653	6,116	130.5

NETWEB TECHNOLOGIES Cash Flow Statement Analysis

• NETWEB TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 184 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 931.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 2,695% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 826 million from the Rs 51 million net cash flows seen during FY23.

NETWEB 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	271	184	-32.3%
Cash Flow from Investing Activities	Rs m	-140	-1,446	-
Cash Flow from Financing Activities	Rs m	-80	2,088	-
Net Cash Flow	Rs m	51	826	1,530.1%

Current Valuations for NETWEB TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an improvement from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,316.2, stands at 151.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 31.4 times, while the price to sales ratio stands at 18.0 times.
• The company's price to cash flow (P/CF) ratio stood at 90.3 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	87.4	128.5
TTM Earnings per share	Rs	9.2	13.5
Diluted earnings per share	Rs	8.3	13.5
Price to Cash Flow	x	0.0	90.3
TTM P/E ratio	x	0.0	151.4
Price / Book Value ratio	x	0.0	17.9
Market Cap	Rs m	0	74,145
Dividends per share (Unadj.)	Rs	0.5	2.0

Ratio Analysis for NETWEB TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY24, from 1.5x 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 17.4x during FY24, from 16.5x 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 18.3% during FY24, from 51.4% 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 declined and down at 26.0% during FY24, from 66.6% 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 13.4% during FY24, from 19.2% 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	1.5	3.1
Debtors’ Days	Days	124	93
Interest coverage	x	16.5	17.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	19.2	13.4
Return on equity	%	51.4	18.3
Return on capital employed	%	66.6	26.0

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

NETWEB TECHNOLOGIES Share Price Performance

Over the last one year, NETWEB TECHNOLOGIES share price has moved up from Rs 875.3 to Rs 2,316.2, registering a gain of Rs 1,441.0 or around 164.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 41,887.7 (up 0.4%). Over the last one year it has moved up from 30,276.6 to 41,887.7, a gain of 11,611 points (up 38.4%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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