RATEGAIN TRAVEL TECH 2023-24 Annual Report Analysis

Tue, 27 Aug

RATEGAIN TRAVEL TECH 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.

RATEGAIN TRAVEL TECH Income Statement Analysis

• Operating income during the year rose 69.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 120.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY24 as against 15.3% in FY23.
• Depreciation charges increased by 14.6% and finance costs decreased by 19.1% YoY, respectively.
• Other income grew by 108.5% YoY.
• Net profit for the year grew by 112.6% YoY.
• Net profit margins during the year grew from 12.1% in FY23 to 15.2% in FY24.

RATEGAIN TRAVEL TECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,651	9,570	69.3%
Other income	Rs m	199	416	108.5%
Total Revenues	Rs m	5,851	9,986	70.7%
Gross profit	Rs m	866	1,912	120.7%
Depreciation	Rs m	358	410	14.6%
Interest	Rs m	35	28	-19.1%
Profit before tax	Rs m	673	1,889	180.8%
Tax	Rs m	-11	435	NA
Profit after tax	Rs m	684	1,454	112.6%
Gross profit margin	%	15.3	20.0
Effective tax rate	%	-1.7	23.0
Net profit margin	%	12.1	15.2

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RATEGAIN TRAVEL TECH 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 28.1%.
• Current assets rose 160% and stood at Rs 13 billion, while fixed assets fell 7% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 84%.

RATEGAIN TRAVEL TECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,979	14,358	105.7
Current Liabilities	Rs m	1,933	2,477	28.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,295	17,104	84.0
Current assets	Rs m	5,047	13,133	160.2
Fixed Assets	Rs m	4,249	3,971	-6.5
Total Assets	Rs m	9,295	17,104	84.0

RATEGAIN TRAVEL TECH Cash Flow Statement Analysis

• RATEGAIN TRAVEL TECH's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 192.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 34,279% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 658 million net cash flows seen during FY23.

RATEGAIN TRAVEL TECH 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	519	1,518	192.4%
Cash Flow from Investing Activities	Rs m	126	-5,679	-
Cash Flow from Financing Activities	Rs m	-17	5,814	-
Net Cash Flow	Rs m	658	1,676	154.5%

Current Valuations for RATEGAIN TRAVEL TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.3, an improvement from the EPS of Rs 6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 737.9, stands at 52.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 39.8 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	52.2	81.3
TTM Earnings per share	Rs	6.3	12.3
Diluted earnings per share	Rs	5.8	12.3
Price to Cash Flow	x	38.8	39.8
TTM P/E ratio	x	59.1	52.5
Price / Book Value ratio	x	5.1	5.2
Market Cap	Rs m	35,417	74,131
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RATEGAIN TRAVEL TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.3x during FY24, from 2.6x 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 68.1x during FY24, from 20.3x 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 10.1% during FY24, from 9.8% 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 13.4% during FY24, from 10.1% 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 8.7% during FY24, from 7.7% 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	2.6	5.3
Debtors’ Days	Days	104	78
Interest coverage	x	20.3	68.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	8.7
Return on equity	%	9.8	10.1
Return on capital employed	%	10.1	13.4

To see how RATEGAIN TRAVEL TECH has performed over the last 5 years, please visit here.

RATEGAIN TRAVEL TECH Share Price Performance

Over the last one year, RATEGAIN TRAVEL TECH share price has moved up from Rs 573.2 to Rs 737.9, registering a gain of Rs 164.7 or around 28.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,562.5 (up 0.3%). Over the last one year it has moved up from 31,264.9 to 42,562.5, a gain of 11,298 points (up 36.1%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

(To know more, check out historical annual results for RATEGAIN TRAVEL TECH and quarterly results for RATEGAIN TRAVEL TECH)