SILVER TOUCH TECH. 2023-24 Annual Report Analysis

Wed, 28 Aug

SILVER TOUCH 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.

SILVER TOUCH TECH. Income Statement Analysis

• Operating income during the year rose 37.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY24 as against 10.3% in FY23.
• Depreciation charges increased by 6.2% and finance costs increased by 6.1% YoY, respectively.
• Other income grew by 19.2% YoY.
• Net profit for the year grew by 65.4% YoY.
• Net profit margins during the year grew from 5.9% in FY23 to 7.2% in FY24.

SILVER TOUCH TECH. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,638	2,243	37.0%
Other income	Rs m	25	30	19.2%
Total Revenues	Rs m	1,663	2,273	36.7%
Gross profit	Rs m	169	249	47.5%
Depreciation	Rs m	47	50	6.2%
Interest	Rs m	14	15	6.1%
Profit before tax	Rs m	134	215	60.8%
Tax	Rs m	37	55	48.6%
Profit after tax	Rs m	97	161	65.4%
Gross profit margin	%	10.3	11.1
Effective tax rate	%	27.5	25.4
Net profit margin	%	5.9	7.2

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SILVER TOUCH TECH. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 464 million as compared to Rs 452 million in FY23, thereby witnessing an increase of 2.6%.
• Long-term debt stood at Rs 72 million as compared to Rs 43 million during FY23, a growth of 67.1%.
• Current assets rose 16% and stood at Rs 1 billion, while fixed assets rose 22% and stood at Rs 567 million 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 growth of 18%.

SILVER TOUCH TECH. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	951	1,129	18.7
Current Liabilities	Rs m	452	464	2.6
Long-term Debt	Rs m	43	72	67.1
Total Liabilities	Rs m	1,511	1,777	17.6
Current assets	Rs m	1,046	1,210	15.7
Fixed Assets	Rs m	465	567	21.8
Total Assets	Rs m	1,511	1,777	17.6

SILVER TOUCH TECH. Cash Flow Statement Analysis

• SILVER TOUCH TECH. 's cash flow from operating activities (CFO) during FY24 stood at Rs 28 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -121 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 29 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -64 million from the Rs 41 million net cash flows seen during FY23.

SILVER TOUCH 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	158	28	-82.2%
Cash Flow from Investing Activities	Rs m	-190	-121	-
Cash Flow from Financing Activities	Rs m	73	29	-60.6%
Net Cash Flow	Rs m	41	-64	-

Current Valuations for SILVER TOUCH TECH.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 760.0, stands at 53.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 33.8 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	129.2	176.9
TTM Earnings per share	Rs	7.7	12.7
Diluted earnings per share	Rs	7.7	12.7
Price to Cash Flow	x	32.2	33.8
TTM P/E ratio	x	47.8	53.0
Price / Book Value ratio	x	3.8	6.3
Market Cap	Rs m	3,646	7,101
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for SILVER TOUCH TECH.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x 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 improved and stood at 15.6x during FY24, from 10.6x 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 14.2% during FY24, from 10.2% 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 19.2% during FY24, from 14.9% 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 9.9% during FY24, from 7.3% 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	2.6
Debtors’ Days	Days	1,225	1,193
Interest coverage	x	10.6	15.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.3	9.9
Return on equity	%	10.2	14.2
Return on capital employed	%	14.9	19.2

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

SILVER TOUCH TECH. Share Price Performance

Over the last one year, SILVER TOUCH TECH. share price has moved up from Rs 0.0 to Rs 760.0, registering a gain of Rs 760.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 26.1% over the year.

(To know more, check out historical annual results for SILVER TOUCH TECH. and quarterly results for SILVER TOUCH TECH. )