SPACENET ENTERPRISES 2023-24 Annual Report Analysis

Thu, 28 Nov

SPACENET ENTERPRISES 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.

SPACENET ENTERPRISES Income Statement Analysis

• Operating income during the year fell 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 308.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.5% in FY24 as against 1.9% in FY23.
• Depreciation charges increased by 42.2% and finance costs decreased by 61.0% YoY, respectively.
• Other income declined by 17.3% YoY.
• Net profit for the year grew by 307.2% YoY.
• Net profit margins during the year grew from 1.8% in FY23 to 8.3% in FY24.

SPACENET ENTERPRISES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,445	1,282	-11.3%
Other income	Rs m	4	3	-17.3%
Total Revenues	Rs m	1,450	1,286	-11.3%
Gross profit	Rs m	27	109	308.3%
Depreciation	Rs m	2	3	42.2%
Interest	Rs m	3	1	-61.0%
Profit before tax	Rs m	25	108	329.8%
Tax	Rs m	-1	1	NA
Profit after tax	Rs m	26	107	307.2%
Gross profit margin	%	1.9	8.5
Effective tax rate	%	-4.3	1.2
Net profit margin	%	1.8	8.3

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SPACENET ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 157 million as compared to Rs 268 million in FY23, thereby witnessing an decrease of -41.3%.
• Long-term debt stood at Rs 8 million as compared to Rs 2 million during FY23, a growth of 318.2%.
• Current assets rose 9% and stood at Rs 613 million, while fixed assets rose 159% and stood at Rs 649 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 815 million during FY23, thereby witnessing a growth of 55%.

SPACENET ENTERPRISES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	377	789	109.3
Current Liabilities	Rs m	268	157	-41.3
Long-term Debt	Rs m	2	8	318.2
Total Liabilities	Rs m	815	1,262	54.8
Current assets	Rs m	564	613	8.6
Fixed Assets	Rs m	251	649	158.9
Total Assets	Rs m	815	1,262	54.8

SPACENET ENTERPRISES Cash Flow Statement Analysis

• SPACENET ENTERPRISES 's cash flow from operating activities (CFO) during FY24 stood at Rs -11 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -403 million, an improvement of 316.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 456 million, an improvement of 308% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 42 million from the Rs -17 million net cash flows seen during FY23.

SPACENET ENTERPRISES 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	-32	-11	-
Cash Flow from Investing Activities	Rs m	-97	-403	-
Cash Flow from Financing Activities	Rs m	112	456	308.2%
Net Cash Flow	Rs m	-17	42	-

Current Valuations for SPACENET ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22.0, stands at 108.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.8 times, while the price to sales ratio stands at 9.4 times.
• The company's price to cash flow (P/CF) ratio stood at 112.9 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	2.7	2.3
TTM Earnings per share	Rs	0.0	0.2
Diluted earnings per share	Rs	0.0	0.2
Price to Cash Flow	x	0.0	112.9
TTM P/E ratio	x	0.0	108.3
Price / Book Value ratio	x	23.5	0.0
Market Cap	Rs m	8,846	12,440
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPACENET ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY24, from 2.1x 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 81.7x during FY24, from 8.3x 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 13.5% during FY24, from 7.0% 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 13.7% during FY24, from 7.5% 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 8.6% during FY24, from 3.6% 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	2.1	3.9
Debtors’ Days	Days	952	1,154
Interest coverage	x	8.3	81.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	8.6
Return on equity	%	7.0	13.5
Return on capital employed	%	7.5	13.7

To see how SPACENET ENTERPRISES has performed over the last 5 years, please visit here.

SPACENET ENTERPRISES Share Price Performance

Over the last one year, SPACENET ENTERPRISES share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,775.1 (down 2.0%). Over the last one year it has moved up from 32,787.7 to 42,775.1, a gain of 9,987 points (up 30.5%).

Overall, the NIFTY 50 is down 0.7% over the year.

(To know more, check out historical annual results for SPACENET ENTERPRISES and quarterly results for SPACENET ENTERPRISES )