TAC INFOSEC LTD. 2023-24 Annual Report Analysis

Thu, 21 Nov

TAC INFOSEC LTD. 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.

TAC INFOSEC LTD. Income Statement Analysis

• Operating income during the year rose 16.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 56.2% in FY24 as against 53.2% in FY23.
• Depreciation charges increased by 1.6% and finance costs increased by 83.0% YoY, respectively.
• Other income grew by 59.4% YoY.
• Net profit for the year grew by 23.5% YoY.
• Net profit margins during the year grew from 51.3% in FY23 to 54.5% in FY24.

TAC INFOSEC LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	100	116	16.2%
Other income	Rs m	1	2	59.4%
Total Revenues	Rs m	101	118	16.8%
Gross profit	Rs m	53	65	22.9%
Depreciation	Rs m	2	3	1.6%
Interest	Rs m	1	2	83.0%
Profit before tax	Rs m	51	64	23.9%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	51	63	23.5%
Gross profit margin	%	53.2	56.2
Effective tax rate	%	0.0	0.3
Net profit margin	%	51.3	54.5

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

TAC INFOSEC LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 35 million as compared to Rs 25 million in FY23, thereby witnessing an increase of 41.5%.
• Long-term debt down at Rs 1 million as compared to Rs 2 million during FY23, a fall of 68.5%.
• Current assets rose 61% and stood at Rs 141 million, while fixed assets rose 117% and stood at Rs 37 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 177 million as against Rs 104 million during FY23, thereby witnessing a growth of 70%.

TAC INFOSEC LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	78	141	81.5
Current Liabilities	Rs m	25	35	41.5
Long-term Debt	Rs m	2	1	-68.5
Total Liabilities	Rs m	104	177	69.8
Current assets	Rs m	87	141	60.7
Fixed Assets	Rs m	17	37	116.5
Total Assets	Rs m	104	177	69.8

TAC INFOSEC LTD. Cash Flow Statement Analysis

• TAC INFOSEC LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -22 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -13 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 12 million, an improvement of 348% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -23 million from the Rs 12 million net cash flows seen during FY23.

TAC INFOSEC LTD. 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	16	-22	-
Cash Flow from Investing Activities	Rs m	0	-13	-
Cash Flow from Financing Activities	Rs m	-5	12	-
Net Cash Flow	Rs m	12	-23	-

Current Valuations for TAC INFOSEC LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an decline from the EPS of Rs 113.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 757.7, stands at 125.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 56.2 times, while the price to sales ratio stands at 49.9 times.
• The company's price to cash flow (P/CF) ratio stood at 120.7 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	222.2	15.2
TTM Earnings per share	Rs	113.9	8.3
Diluted earnings per share	Rs	4.9	6.0
Price to Cash Flow	x	0.0	120.7
TTM P/E ratio	x	0.0	125.4
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	7,940
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TAC INFOSEC LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.0x during FY24, from 3.5x 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 40.4x during FY24, from 59.3x 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 declined and down at 44.8% during FY24, from 65.9% 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 45.9% during FY24, from 65.6% 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 36.7% during FY24, from 50.0% 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	3.5	4.0
Debtors’ Days	Days	1,594	3,587
Interest coverage	x	59.3	40.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	50.0	36.7
Return on equity	%	65.9	44.8
Return on capital employed	%	65.6	45.9

To see how TAC INFOSEC LTD. has performed over the last 5 years, please visit here.

TAC INFOSEC LTD. Share Price Performance

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(To know more, check out historical annual results for TAC INFOSEC LTD. and quarterly results for TAC INFOSEC LTD.)