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ORIENT TECHNOLOGIES LTD. 2023-24 Annual Report Analysis

Mon, 2 Sep

ORIENT TECHNOLOGIES LTD. 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.

ORIENT TECHNOLOGIES LTD. Income Statement Analysis

• Operating income during the year rose 12.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.4% in FY24 as against 9.1% in FY23.
• Depreciation charges increased by 102.7% and finance costs increased by 13.4% YoY, respectively.
• Other income declined by 42.5% YoY.
• Net profit for the year grew by 8.2% YoY.
• Net profit margins during the year declined from 7.2% in FY23 to 6.9% in FY24.

ORIENT TECHNOLOGIES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,351	6,029	12.7%
Other income	Rs m	69	40	-42.5%
Total Revenues	Rs m	5,420	6,069	12.0%
Gross profit	Rs m	486	566	16.4%
Depreciation	Rs m	18	36	102.7%
Interest	Rs m	18	21	13.4%
Profit before tax	Rs m	520	549	5.7%
Tax	Rs m	137	135	-1.4%
Profit after tax	Rs m	383	414	8.2%
Gross profit margin	%	9.1	9.4
Effective tax rate	%	26.3	24.5
Net profit margin	%	7.2	6.9

For Investors: Our Big Prediction

ORIENT TECHNOLOGIES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 973 million in FY23, thereby witnessing an increase of 28.4%.
• Long-term debt down at Rs 14 million as compared to Rs 44 million during FY23, a fall of 67.9%.
• Current assets rose 30% and stood at Rs 3 billion, while fixed assets rose 23% and stood at Rs 303 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 29%.

ORIENT TECHNOLOGIES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,288	1,753	36.1
Current Liabilities	Rs m	973	1,250	28.4
Long-term Debt	Rs m	44	14	-67.9
Total Liabilities	Rs m	2,399	3,102	29.3
Current assets	Rs m	2,152	2,799	30.0
Fixed Assets	Rs m	247	303	22.7
Total Assets	Rs m	2,399	3,102	29.3

ORIENT TECHNOLOGIES LTD. Cash Flow Statement Analysis

• ORIENT TECHNOLOGIES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 223 million, an improvement of 1,040.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -121 million, an improvement of 3.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -97 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 million from the Rs -54 million net cash flows seen during FY23.

ORIENT TECHNOLOGIES LTD. 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	20	223	1,040.8%
Cash Flow from Investing Activities	Rs m	-117	-121	-
Cash Flow from Financing Activities	Rs m	44	-97	-
Net Cash Flow	Rs m	-54	5	-

Current Valuations for ORIENT TECHNOLOGIES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an decline from the EPS of Rs 21.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 324.0, stands at 32.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.9 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	305.8	168.3
TTM Earnings per share	Rs	21.9	11.6
Diluted earnings per share	Rs	9.2	10.0
Price to Cash Flow	x	0.0	29.9
TTM P/E ratio	x	0.0	32.6
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	13,492
Dividends per share (Unadj.)	Rs	2.3	1.7

Ratio Analysis for ORIENT TECHNOLOGIES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 2.2x 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 27.8x during FY24, from 29.7x 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 declined and down at 23.6% during FY24, from 29.7% 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 32.2% during FY24, from 40.4% 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 14.0% during FY24, from 16.7% 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	2.2	2.2
Debtors’ Days	Days	81	954
Interest coverage	x	29.7	27.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.7	14.0
Return on equity	%	29.7	23.6
Return on capital employed	%	40.4	32.2

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

ORIENT TECHNOLOGIES LTD. Share Price Performance

Over the last one year, ORIENT TECHNOLOGIES LTD. share price has moved up from Rs 0.0 to Rs 324.0, registering a gain of Rs 324.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 27.0% over the year.

(To know more, check out historical annual results for ORIENT TECHNOLOGIES LTD. and quarterly results for ORIENT TECHNOLOGIES LTD.)