NUCLEUS SOFTWARE 2023-24 Annual Report Analysis

Tue, 25 Jun

NUCLEUS SOFTWARE 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.

NUCLEUS SOFTWARE Income Statement Analysis

• Operating income during the year rose 30.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.7% in FY24 as against 24.7% in FY23.
• Depreciation charges decreased by 22.3% and finance costs decreased by 6.9% YoY, respectively.
• Other income grew by 49.4% YoY.
• Net profit for the year grew by 49.9% YoY.
• Net profit margins during the year grew from 20.1% in FY23 to 23.2% in FY24.

NUCLEUS SOFTWARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,345	8,265	30.3%
Other income	Rs m	341	509	49.4%
Total Revenues	Rs m	6,685	8,774	31.2%
Gross profit	Rs m	1,568	2,204	40.6%
Depreciation	Rs m	187	146	-22.3%
Interest	Rs m	10	10	-6.9%
Profit before tax	Rs m	1,711	2,558	49.5%
Tax	Rs m	433	642	48.3%
Profit after tax	Rs m	1,278	1,916	49.9%
Gross profit margin	%	24.7	26.7
Effective tax rate	%	25.3	25.1
Net profit margin	%	20.1	23.2

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

NUCLEUS SOFTWARE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 26.7%.
• Current assets rose 27% and stood at Rs 6 billion, while fixed assets rose 29% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 27%.

NUCLEUS SOFTWARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,107	7,774	27.3
Current Liabilities	Rs m	2,330	2,953	26.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,742	11,140	27.4
Current assets	Rs m	4,834	6,118	26.5
Fixed Assets	Rs m	3,908	5,023	28.5
Total Assets	Rs m	8,742	11,140	27.4

NUCLEUS SOFTWARE Cash Flow Statement Analysis

• NUCLEUS SOFTWARE's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 345.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 1,451.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -302 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -47 million from the Rs 147 million net cash flows seen during FY23.

NUCLEUS SOFTWARE 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	498	2,220	345.5%
Cash Flow from Investing Activities	Rs m	-127	-1,970	-
Cash Flow from Financing Activities	Rs m	-227	-302	-
Net Cash Flow	Rs m	147	-47	-

Current Valuations for NUCLEUS SOFTWARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 71.6, an improvement from the EPS of Rs 47.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,431.0, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	237.0	308.7
TTM Earnings per share	Rs	47.7	71.6
Diluted earnings per share	Rs	47.7	71.6
Price to Cash Flow	x	11.7	15.6
TTM P/E ratio	x	13.4	20.0
Price / Book Value ratio	x	2.2	4.1
Market Cap	Rs m	13,698	32,194
Dividends per share (Unadj.)	Rs	10.0	12.5

Ratio Analysis for NUCLEUS SOFTWARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.1x 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 270.3x during FY24, from 168.7x 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 24.6% during FY24, from 20.9% 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 improved and stood at 33.0% during FY24, from 28.2% 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 17.3% during FY24, from 14.7% 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	2.1	2.1
Debtors’ Days	Days	1,005	734
Interest coverage	x	168.7	270.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.7	17.3
Return on equity	%	20.9	24.6
Return on capital employed	%	28.2	33.0

To see how NUCLEUS SOFTWARE has performed over the last 5 years, please visit here.

NUCLEUS SOFTWARE Share Price Performance

Over the last one year, NUCLEUS SOFTWARE share price has moved up from Rs 1,025.8 to Rs 1,431.0, registering a gain of Rs 405.3 or around 39.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,158.6 (down 0.0%). Over the last one year it has moved up from 28,855.0 to 36,158.6, a gain of 7,304 points (up 25.3%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for NUCLEUS SOFTWARE and quarterly results for NUCLEUS SOFTWARE)