Markets will remain closed on 20^th November, 2024 on account of Assembly Elections in Maharashtra.

SUBEX 2023-24 Annual Report Analysis

Thu, 11 Jul

SUBEX 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.

SUBEX Income Statement Analysis

• Operating income during the year rose 11.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 52.8% in FY24 as against 11.6% in FY23.
• Depreciation charges increased by 11.4% and finance costs increased by 1.9% YoY, respectively.
• Other income declined by 30.7% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 18.4% in FY23 to 61.9% in FY24.

SUBEX Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,787	3,097	11.1%
Other income	Rs m	97	67	-30.7%
Total Revenues	Rs m	2,884	3,165	9.7%
Gross profit	Rs m	-322	-1,636	NA
Depreciation	Rs m	140	156	11.4%
Interest	Rs m	26	26	1.9%
Profit before tax	Rs m	-391	-1,751	NA
Tax	Rs m	122	166	36.9%
Profit after tax	Rs m	-512	-1,917	NA
Gross profit margin	%	-11.6	-52.8
Effective tax rate	%	-31.1	-9.5
Net profit margin	%	-18.4	-61.9

For Investors: Our Big Prediction

SUBEX Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 858 million in FY23, thereby witnessing an increase of 23.4%.
• Current assets fell 4% and stood at Rs 3 billion, while fixed assets fell 34% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 23%.

SUBEX Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,174	3,301	-36.2
Current Liabilities	Rs m	858	1,059	23.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,174	5,511	-23.2
Current assets	Rs m	2,615	2,514	-3.8
Fixed Assets	Rs m	4,559	2,996	-34.3
Total Assets	Rs m	7,174	5,511	-23.2

SUBEX Cash Flow Statement Analysis

• SUBEX's cash flow from operating activities (CFO) during FY24 stood at Rs -83 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 332 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -93 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 154 million from the Rs -330 million net cash flows seen during FY23.

SUBEX 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	92	-83	-
Cash Flow from Investing Activities	Rs m	-378	332	-
Cash Flow from Financing Activities	Rs m	-65	-93	-
Net Cash Flow	Rs m	-330	154	-

Current Valuations for SUBEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an decline from the EPS of Rs -0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 30.5, stands at -8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 5.5 times.
• The company's price to cash flow (P/CF) ratio stood at -11.6 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	5.0	5.5
TTM Earnings per share	Rs	-0.9	-3.4
Diluted earnings per share	Rs	-0.9	-3.4
Price to Cash Flow	x	-42.8	-11.6
TTM P/E ratio	x	-31.1	-8.9
Price / Book Value ratio	x	3.6	6.2
Market Cap	Rs m	18,813	20,387
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUBEX

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 3.0x 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 deteriorated and stood at -65.6x during FY24, from -14.1x 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 -58.1% during FY24, from -9.9% 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 -52.3% during FY24, from -7.1% 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 -34.3% during FY24, from -6.8% 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	3.0	2.4
Debtors’ Days	Days	1,184	1,197
Interest coverage	x	-14.1	-65.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-6.8	-34.3
Return on equity	%	-9.9	-58.1
Return on capital employed	%	-7.1	-52.3

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

SUBEX Share Price Performance

Over the last one year, SUBEX share price has moved up from Rs 28.5 to Rs 30.5, registering a gain of Rs 2.0 or around 7.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 38,152.2 (up 0.1%). Over the last one year it has moved up from 29,681.0 to 38,152.2, a gain of 8,471 points (up 28.5%).

Overall, the S&P BSE SENSEX is up 22.1% over the year.

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