ROUTE MOBILE 2023-24 Annual Report Analysis

Mon, 29 Jul

ROUTE MOBILE 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.

ROUTE MOBILE 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 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.2% in FY24 as against 12.5% in FY23.
• Depreciation charges increased by 5.5% and finance costs increased by 38.4% YoY, respectively.
• Other income grew by 2.7% YoY.
• Net profit for the year grew by 16.7% YoY.
• Net profit margins during the year grew from 9.3% in FY23 to 9.7% in FY24.

ROUTE MOBILE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	35,692	40,233	12.7%
Other income	Rs m	394	405	2.7%
Total Revenues	Rs m	36,086	40,638	12.6%
Gross profit	Rs m	4,452	5,305	19.1%
Depreciation	Rs m	816	861	5.5%
Interest	Rs m	215	298	38.4%
Profit before tax	Rs m	3,815	4,551	19.3%
Tax	Rs m	484	662	36.9%
Profit after tax	Rs m	3,331	3,888	16.7%
Gross profit margin	%	12.5	13.2
Effective tax rate	%	12.7	14.6
Net profit margin	%	9.3	9.7

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

ROUTE MOBILE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 32.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 437 million during FY23, a growth of 209.1%.
• Current assets rose 19% and stood at Rs 21 billion, while fixed assets rose 22% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 35 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 20%.

ROUTE MOBILE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,861	21,215	18.8
Current Liabilities	Rs m	7,832	10,353	32.2
Long-term Debt	Rs m	437	1,350	209.1
Total Liabilities	Rs m	28,769	34,616	20.3
Current assets	Rs m	17,867	21,304	19.2
Fixed Assets	Rs m	10,902	13,312	22.1
Total Assets	Rs m	28,769	34,616	20.3

ROUTE MOBILE Cash Flow Statement Analysis

• ROUTE MOBILE's cash flow from operating activities (CFO) during FY24 stood at Rs -976 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -21 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 246% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 586 million from the Rs 763 million net cash flows seen during FY23.

ROUTE MOBILE 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	732	-976	-
Cash Flow from Investing Activities	Rs m	1,122	-21	-
Cash Flow from Financing Activities	Rs m	-1,079	1,580	-
Net Cash Flow	Rs m	763	586	-23.1%

Current Valuations for ROUTE MOBILE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.9, an improvement from the EPS of Rs 53.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,614.6, stands at 26.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 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	571.6	640.8
TTM Earnings per share	Rs	53.3	61.9
Diluted earnings per share	Rs	53.1	61.9
Price to Cash Flow	x	20.7	19.6
TTM P/E ratio	x	25.8	26.8
Price / Book Value ratio	x	4.9	4.4
Market Cap	Rs m	86,791	93,195
Dividends per share (Unadj.)	Rs	11.0	11.0

Ratio Analysis for ROUTE MOBILE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.3x 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 16.3x during FY24, from 18.7x 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 18.3% during FY24, from 18.6% 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 21.5% during FY24, from 22.0% 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 12.1% during FY24, from 12.3% 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	2.3	2.1
Debtors’ Days	Days	7	10
Interest coverage	x	18.7	16.3
Debt to equity ratio	x	0.0	0.1
Return on assets	%	12.3	12.1
Return on equity	%	18.6	18.3
Return on capital employed	%	22.0	21.5

To see how ROUTE MOBILE has performed over the last 5 years, please visit here.

ROUTE MOBILE Share Price Performance

Over the last one year, ROUTE MOBILE share price has moved up from Rs 1,504.3 to Rs 1,614.6, registering a gain of Rs 110.3 or around 7.3%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for ROUTE MOBILE and quarterly results for ROUTE MOBILE)