TATA TECHNOLOGIES LTD. 2023-24 Annual Report Analysis

Tue, 28 May

TATA TECHNOLOGIES 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.

TATA TECHNOLOGIES LTD. Income Statement Analysis

• Operating income during the year rose 15.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.4% in FY24 as against 18.3% in FY23.
• Depreciation charges increased by 12.0% and finance costs increased by 5.2% YoY, respectively.
• Other income grew by 13.4% YoY.
• Net profit for the year grew by 8.9% YoY.
• Net profit margins during the year declined from 14.1% in FY23 to 13.3% in FY24.

TATA TECHNOLOGIES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	44,142	51,172	15.9%
Other income	Rs m	1,020	1,156	13.4%
Total Revenues	Rs m	45,161	52,328	15.9%
Gross profit	Rs m	8,067	9,413	16.7%
Depreciation	Rs m	946	1,059	12.0%
Interest	Rs m	180	189	5.2%
Profit before tax	Rs m	7,962	9,321	17.1%
Tax	Rs m	1,721	2,527	46.8%
Profit after tax	Rs m	6,240	6,794	8.9%
Gross profit margin	%	18.3	18.4
Effective tax rate	%	21.6	27.1
Net profit margin	%	14.1	13.3

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

TATA TECHNOLOGIES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 21 billion as compared to Rs 20 billion in FY23, thereby witnessing an increase of 7.6%.
• Current assets rose 5% and stood at Rs 40 billion, while fixed assets rose 8% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 53 billion as against Rs 50 billion during FY23, thereby witnessing a growth of 5%.

TATA TECHNOLOGIES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	29,877	32,156	7.6
Current Liabilities	Rs m	19,734	21,228	7.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	50,494	53,250	5.5
Current assets	Rs m	37,975	39,730	4.6
Fixed Assets	Rs m	12,519	13,520	8.0
Total Assets	Rs m	50,494	53,250	5.5

TATA TECHNOLOGIES LTD. Cash Flow Statement Analysis

• TATA TECHNOLOGIES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -4 billion net cash flows seen during FY23.

TATA TECHNOLOGIES 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	4,014	2,943	-26.7%
Cash Flow from Investing Activities	Rs m	-4,874	3,936	-
Cash Flow from Financing Activities	Rs m	-3,469	-5,568	-
Net Cash Flow	Rs m	-3,854	1,370	-

Current Valuations for TATA TECHNOLOGIES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an improvement from the EPS of Rs 15.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,076.6, stands at 64.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.6 times, while the price to sales ratio stands at 8.5 times.
• The company's price to cash flow (P/CF) ratio stood at 62.5 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	108.8	126.1
TTM Earnings per share	Rs	15.4	16.7
Diluted earnings per share	Rs	15.4	16.7
Price to Cash Flow	x	0.0	62.5
TTM P/E ratio	x	0.0	64.3
Price / Book Value ratio	x	0.0	15.3
Market Cap	Rs m	0	490,859
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for TATA TECHNOLOGIES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 1.9x 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 50.3x during FY24, from 45.3x 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 21.1% during FY24, from 20.9% 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 improved and stood at 29.6% during FY24, from 27.2% 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 13.1% during FY24, from 12.7% 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	1.9	1.9
Debtors’ Days	Days	9	8
Interest coverage	x	45.3	50.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.7	13.1
Return on equity	%	20.9	21.1
Return on capital employed	%	27.2	29.6

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

TATA TECHNOLOGIES LTD. Share Price Performance

Over the last one year, TATA TECHNOLOGIES LTD. share price has moved up from Rs 0.0 to Rs 1,076.6, registering a gain of Rs 1,076.6 or around 0.0%.

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

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