TAKE SOLUTIONS 2022-23 Annual Report Analysis

Fri, 31 Mar

TAKE SOLUTIONS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

TAKE SOLUTIONS Income Statement Analysis

• Operating income during the year fell 71.0% 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 15.6% in FY23 as against 1.5% in FY22.
• Depreciation charges decreased by 77.7% and finance costs decreased by 74.5% YoY, respectively.
• Other income declined by 49.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 12.7% in FY22 to 24.8% in FY23.

TAKE SOLUTIONS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,526	1,891	-71.0%
Other income	Rs m	168	84	-49.7%
Total Revenues	Rs m	6,694	1,975	-70.5%
Gross profit	Rs m	101	-294	NA
Depreciation	Rs m	756	168	-77.7%
Interest	Rs m	293	75	-74.5%
Profit before tax	Rs m	-780	-453	NA
Tax	Rs m	48	17	-65.3%
Profit after tax	Rs m	-829	-470	NA
Gross profit margin	%	1.5	-15.6
Effective tax rate	%	-6.2	-3.7
Net profit margin	%	-12.7	-24.8

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

TAKE SOLUTIONS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -31.8%.
• Long-term debt down at Rs 58 million as compared to Rs 152 million during FY22, a fall of 62.1%.
• Current assets fell 52% and stood at Rs 902 million, while fixed assets fell 2% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 12 billion during FY22, thereby witnessing a fall of 82%.

TAKE SOLUTIONS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,706	1,070	-37.3
Current Liabilities	Rs m	1,479	1,009	-31.8
Long-term Debt	Rs m	152	58	-62.1
Total Liabilities	Rs m	12,205	2,217	-81.8
Current assets	Rs m	1,895	902	-52.4
Fixed Assets	Rs m	1,342	1,315	-2.0
Total Assets	Rs m	12,205	2,217	-81.8

TAKE SOLUTIONS Cash Flow Statement Analysis

• TAKE SOLUTIONS's cash flow from operating activities (CFO) during FY23 stood at Rs 200 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -21 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -357 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -183 million from the Rs 354 million net cash flows seen during FY22.

TAKE SOLUTIONS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,203	200	-83.4%
Cash Flow from Investing Activities	Rs m	-306	-21	-
Cash Flow from Financing Activities	Rs m	-545	-357	-
Net Cash Flow	Rs m	354	-183	-

Current Valuations for TAKE SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.2, an improvement from the EPS of Rs -5.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 13.5, stands at -4.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at -11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	44.6	12.9
TTM Earnings per share	Rs	-5.7	-3.2
Diluted earnings per share	Rs	-5.6	-3.2
Price to Cash Flow	x	-59.3	-11.3
TTM P/E ratio	x	-5.0	-4.2
Price / Book Value ratio	x	4.3	3.2
Market Cap	Rs m	7,293	3,414
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TAKE SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.3x during FY22. 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 -5.1x during FY23, from -1.7x during FY22. 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 -43.9% during FY23, from -48.6% during FY23. 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 -33.5% during FY23, from -26.2% during FY22. 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 -17.8% during FY23, from -4.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	0.9
Debtors’ Days	Days	46	58
Interest coverage	x	-1.7	-5.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-4.4	-17.8
Return on equity	%	-48.6	-43.9
Return on capital employed	%	-26.2	-33.5

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

TAKE SOLUTIONS Share Price Performance

Over the last one year, TAKE SOLUTIONS share price has moved down from Rs 29.0 to Rs 13.5, registering a loss of Rs 15.4 or around 53.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,479.0 (up 2.5%). Over the last one year it has moved down from 36,402.7 to 28,479.0, a loss of 7,924 points (down 21.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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