R.S.SOFTWARE 2023-24 Annual Report Analysis

Thu, 20 Jun

R.S.SOFTWARE 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.

R.S.SOFTWARE Income Statement Analysis

• Operating income during the year rose 97.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.6% in FY24 as against 18.1% in FY23.
• Depreciation charges increased by 15.1% and finance costs decreased by 27.5% YoY, respectively.
• Other income grew by 279.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 28.8% in FY23 to 30.8% in FY24.

R.S.SOFTWARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	301	595	97.6%
Other income	Rs m	12	44	279.9%
Total Revenues	Rs m	313	640	104.5%
Gross profit	Rs m	-55	188	NA
Depreciation	Rs m	41	47	15.1%
Interest	Rs m	3	2	-27.5%
Profit before tax	Rs m	-87	184	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-87	184	NA
Gross profit margin	%	-18.1	31.6
Effective tax rate	%	0.0	0.0
Net profit margin	%	-28.8	30.8

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R.S.SOFTWARE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 164 million as compared to Rs 91 million in FY23, thereby witnessing an increase of 80.7%.
• Current assets rose 89% and stood at Rs 547 million, while fixed assets fell 4% and stood at Rs 136 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 683 million as against Rs 432 million during FY23, thereby witnessing a growth of 58%.

R.S.SOFTWARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	305	486	59.6
Current Liabilities	Rs m	91	164	80.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	432	683	58.1
Current assets	Rs m	289	547	88.9
Fixed Assets	Rs m	143	136	-4.4
Total Assets	Rs m	432	683	58.1

R.S.SOFTWARE Cash Flow Statement Analysis

• R.S.SOFTWARE's cash flow from operating activities (CFO) during FY24 stood at Rs 158 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 156 million from the Rs -29 million net cash flows seen during FY23.

R.S.SOFTWARE 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	-96	158	-
Cash Flow from Investing Activities	Rs m	65	-3	-
Cash Flow from Financing Activities	Rs m	2	0	-98.2%
Net Cash Flow	Rs m	-29	156	-

Current Valuations for R.S.SOFTWARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an improvement from the EPS of Rs -3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 211.1, stands at 29.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.2 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	11.7	23.2
TTM Earnings per share	Rs	-3.4	7.1
Diluted earnings per share	Rs	-3.4	7.1
Price to Cash Flow	x	-12.3	12.2
TTM P/E ratio	x	-6.6	29.6
Price / Book Value ratio	x	2.6	5.8
Market Cap	Rs m	780	2,803
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for R.S.SOFTWARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 3.2x 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 improved and stood at 75.9x during FY24, from -24.7x 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 improved and stood at 37.7% during FY24, from -28.5% 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 38.2% during FY24, from -27.4% 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 improved and stood at 27.2% during FY24, from -19.3% 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	3.2	3.3
Debtors’ Days	Days	107	686
Interest coverage	x	-24.7	75.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-19.3	27.2
Return on equity	%	-28.5	37.7
Return on capital employed	%	-27.4	38.2

To see how R.S.SOFTWARE has performed over the last 5 years, please visit here.

R.S.SOFTWARE Share Price Performance

Over the last one year, R.S.SOFTWARE share price has moved up from Rs 37.7 to Rs 211.1, registering a gain of Rs 173.4 or around 459.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 35,810.7 (down 0.1%). Over the last one year it has moved up from 29,304.2 to 35,810.7, a gain of 6,506 points (up 22.2%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for R.S.SOFTWARE and quarterly results for R.S.SOFTWARE)