ONWARD TECHNOLOGIES 2023-24 Annual Report Analysis

Thu, 27 Jun

ONWARD 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.

ONWARD TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 7.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 78.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY24 as against 6.6% in FY23.
• Depreciation charges decreased by 0.1% and finance costs decreased by 19.4% YoY, respectively.
• Other income grew by 114.7% YoY.
• Net profit for the year grew by 195.5% YoY.
• Net profit margins during the year grew from 2.6% in FY23 to 7.2% in FY24.

ONWARD TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,409	4,724	7.1%
Other income	Rs m	34	73	114.7%
Total Revenues	Rs m	4,443	4,797	8.0%
Gross profit	Rs m	293	522	78.2%
Depreciation	Rs m	130	130	-0.1%
Interest	Rs m	17	13	-19.4%
Profit before tax	Rs m	180	452	150.4%
Tax	Rs m	66	112	71.5%
Profit after tax	Rs m	115	339	195.5%
Gross profit margin	%	6.6	11.1
Effective tax rate	%	36.3	24.9
Net profit margin	%	2.6	7.2

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ONWARD TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 527 million as compared to Rs 554 million in FY23, thereby witnessing an decrease of -4.9%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets rose 23% and stood at Rs 984 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 20%.

ONWARD TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,698	2,001	17.8
Current Liabilities	Rs m	554	527	-4.9
Long-term Debt	Rs m	4	0	-100.0
Total Liabilities	Rs m	2,458	2,962	20.5
Current assets	Rs m	1,661	1,979	19.1
Fixed Assets	Rs m	798	984	23.3
Total Assets	Rs m	2,458	2,962	20.5

ONWARD TECHNOLOGIES Cash Flow Statement Analysis

• ONWARD TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 623 million, an improvement of 985.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -623 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -162 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -161 million from the Rs -23 million net cash flows seen during FY23.

ONWARD 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	57	623	985.1%
Cash Flow from Investing Activities	Rs m	60	-623	-
Cash Flow from Financing Activities	Rs m	-142	-162	-
Net Cash Flow	Rs m	-23	-161	-

Current Valuations for ONWARD TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.1, an improvement from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 399.0, stands at 26.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 24.5 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	197.6	209.8
TTM Earnings per share	Rs	5.1	15.1
Diluted earnings per share	Rs	5.1	15.0
Price to Cash Flow	x	26.6	24.5
TTM P/E ratio	x	56.6	26.6
Price / Book Value ratio	x	4.3	5.8
Market Cap	Rs m	7,262	11,510
Dividends per share (Unadj.)	Rs	3.0	5.0

Ratio Analysis for ONWARD TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY24, from 3.0x 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 34.7x during FY24, from 11.8x 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 17.0% during FY24, from 6.8% 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 23.2% during FY24, from 11.6% 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 improved and stood at 11.9% during FY24, from 5.3% 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	3.0	3.8
Debtors’ Days	Days	908	779
Interest coverage	x	11.8	34.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	11.9
Return on equity	%	6.8	17.0
Return on capital employed	%	11.6	23.2

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

ONWARD TECHNOLOGIES Share Price Performance

Over the last one year, ONWARD TECHNOLOGIES share price has moved down from Rs 503.6 to Rs 399.0, registering a loss of Rs 104.6 or around 20.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,201.0 (down 0.3%). Over the last one year it has moved up from 29,068.9 to 36,201.0, a gain of 7,132 points (up 24.5%).

Overall, the S&P BSE SENSEX is up 24.8% over the year.

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