SOFTSOL INDIA 2023-24 Annual Report Analysis

Tue, 25 Jun

SOFTSOL INDIA 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.

SOFTSOL INDIA Income Statement Analysis

• Operating income during the year fell 70.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1881.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.9% in FY24 as against 0.4% in FY23.
• Depreciation charges increased by 13.4% and finance costs decreased by 79.7% YoY, respectively.
• Other income grew by 51.8% YoY.
• Net profit for the year grew by 12911.3% YoY.
• Net profit margins during the year grew from 0.1% in FY23 to 42.4% in FY24.

SOFTSOL INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	826	246	-70.3%
Other income	Rs m	59	89	51.8%
Total Revenues	Rs m	884	334	-62.2%
Gross profit	Rs m	3	69	1,881.8%
Depreciation	Rs m	18	21	13.4%
Interest	Rs m	17	3	-79.7%
Profit before tax	Rs m	27	133	392.7%
Tax	Rs m	26	29	11.5%
Profit after tax	Rs m	1	104	12,911.3%
Gross profit margin	%	0.4	27.9
Effective tax rate	%	97.0	22.0
Net profit margin	%	0.1	42.4

Don't Miss: Key Information for Long-term Investors

SOFTSOL INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 15 million as compared to Rs 191 million in FY23, thereby witnessing an decrease of -92.1%.
• Current assets fell 73% and stood at Rs 356 million, while fixed assets rose 171% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a fall of 11%.

SOFTSOL INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,473	1,424	-3.3
Current Liabilities	Rs m	191	15	-92.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,795	1,593	-11.3
Current assets	Rs m	1,339	356	-73.4
Fixed Assets	Rs m	457	1,237	170.9
Total Assets	Rs m	1,795	1,593	-11.3

SOFTSOL INDIA Cash Flow Statement Analysis

• SOFTSOL INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 40 million, an improvement of 0.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -62 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -31 million, an improvement of 92% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -53 million from the Rs 18 million net cash flows seen during FY23.

SOFTSOL INDIA 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	40	40	0.0%
Cash Flow from Investing Activities	Rs m	306	-62	-
Cash Flow from Financing Activities	Rs m	-395	-31	-
Net Cash Flow	Rs m	18	-53	-

Current Valuations for SOFTSOL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 256.7, stands at 34.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 15.4 times.
• The company's price to cash flow (P/CF) ratio stood at 28.1 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	55.8	16.6
TTM Earnings per share	Rs	0.1	7.1
Diluted earnings per share	Rs	0.1	7.1
Price to Cash Flow	x	114.7	28.1
TTM P/E ratio	x	2,689.4	34.8
Price / Book Value ratio	x	1.5	2.5
Market Cap	Rs m	2,255	3,509
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SOFTSOL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 23.6x during FY24, from 7.0x 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 40.3x during FY24, from 2.6x 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 7.3% during FY24, from 0.1% 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 9.6% during FY24, from 3.0% 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 improved and stood at 6.7% during FY24, from 1.0% 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	7.0	23.6
Debtors’ Days	Days	681	820
Interest coverage	x	2.6	40.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.0	6.7
Return on equity	%	0.1	7.3
Return on capital employed	%	3.0	9.6

To see how SOFTSOL INDIA has performed over the last 5 years, please visit here.

SOFTSOL INDIA Share Price Performance

Over the last one year, SOFTSOL INDIA share price has moved up from Rs 140.3 to Rs 256.7, registering a gain of Rs 116.5 or around 83.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,158.6 (down 0.0%). Over the last one year it has moved up from 28,855.0 to 36,158.6, a gain of 7,304 points (up 25.3%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for SOFTSOL INDIA and quarterly results for SOFTSOL INDIA)