QUESS CORP 2023-24 Annual Report Analysis

Tue, 27 Aug

QUESS CORP 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.

QUESS CORP Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.5% in FY24 as against 3.7% in FY23.
• Depreciation charges increased by 3.1% and finance costs increased by 10.6% YoY, respectively.
• Other income grew by 11.8% YoY.
• Net profit for the year grew by 25.8% YoY.
• Net profit margins during the year grew from 1.3% in FY23 to 1.5% in FY24.

QUESS CORP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	171,584	191,001	11.3%
Other income	Rs m	263	295	11.8%
Total Revenues	Rs m	171,847	191,296	11.3%
Gross profit	Rs m	6,424	6,703	4.4%
Depreciation	Rs m	2,746	2,832	3.1%
Interest	Rs m	1,097	1,214	10.6%
Profit before tax	Rs m	2,844	2,952	3.8%
Tax	Rs m	615	148	-75.9%
Profit after tax	Rs m	2,229	2,804	25.8%
Gross profit margin	%	3.7	3.5
Effective tax rate	%	21.6	5.0
Net profit margin	%	1.3	1.5

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QUESS CORP Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 27 billion as compared to Rs 28 billion in FY23, thereby witnessing an decrease of -4.5%.
• Long-term debt down at Rs 18 million as compared to Rs 95 million during FY23, a fall of 81.4%.
• Current assets rose 2% and stood at Rs 36 billion, while fixed assets rose 2% and stood at Rs 26 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 63 billion as against Rs 61 billion during FY23, thereby witnessing a growth of 2%.

QUESS CORP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,002	27,028	8.1
Current Liabilities	Rs m	27,968	26,697	-4.5
Long-term Debt	Rs m	95	18	-81.4
Total Liabilities	Rs m	61,124	62,547	2.3
Current assets	Rs m	35,404	36,180	2.2
Fixed Assets	Rs m	25,720	26,287	2.2
Total Assets	Rs m	61,124	62,547	2.3

QUESS CORP Cash Flow Statement Analysis

• QUESS CORP's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 13.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 495 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 826 million from the Rs 271 million net cash flows seen during FY23.

QUESS CORP 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	4,663	5,293	13.5%
Cash Flow from Investing Activities	Rs m	-23	495	-
Cash Flow from Financing Activities	Rs m	-4,432	-4,965	-
Net Cash Flow	Rs m	271	826	204.5%

Current Valuations for QUESS CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.9, an improvement from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 798.0, stands at 34.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	1,157.6	1,286.1
TTM Earnings per share	Rs	15.0	18.9
Diluted earnings per share	Rs	15.0	18.9
Price to Cash Flow	x	11.0	12.4
TTM P/E ratio	x	24.7	34.5
Price / Book Value ratio	x	3.2	2.6
Market Cap	Rs m	78,988	69,736
Dividends per share (Unadj.)	Rs	12.0	10.0

Ratio Analysis for QUESS CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.3x 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 3.4x during FY24, from 3.6x 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 10.4% during FY24, from 8.9% 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 declined and down at 15.4% during FY24, from 15.7% 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 6.4% during FY24, from 5.4% 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	1.3	1.4
Debtors’ Days	Days	57	53
Interest coverage	x	3.6	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.4	6.4
Return on equity	%	8.9	10.4
Return on capital employed	%	15.7	15.4

To see how QUESS CORP has performed over the last 5 years, please visit here.

QUESS CORP Share Price Performance

Over the last one year, QUESS CORP share price has moved up from Rs 425.8 to Rs 798.0, registering a gain of Rs 372.2 or around 87.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,688.1 (up 0.6%). Over the last one year it has moved up from 31,264.9 to 42,688.1, a gain of 11,423 points (up 36.5%).

Overall, the S&P BSE SENSEX is up 24.9% over the year.

(To know more, check out historical annual results for QUESS CORP and quarterly results for QUESS CORP)