TRIDENT TECHLABS LTD. 2023-24 Annual Report Analysis

Wed, 9 Oct

TRIDENT TECHLABS 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.

TRIDENT TECHLABS LTD. Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.0% in FY24 as against 14.9% in FY23.
• Depreciation charges decreased by 56.3% and finance costs decreased by 7.7% YoY, respectively.
• Other income declined by 55.0% YoY.
• Net profit for the year grew by 100.7% YoY.
• Net profit margins during the year grew from 6.9% in FY23 to 12.9% in FY24.

TRIDENT TECHLABS LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	673	726	7.8%
Other income	Rs m	9	4	-55.0%
Total Revenues	Rs m	682	730	7.0%
Gross profit	Rs m	101	160	58.8%
Depreciation	Rs m	9	4	-56.3%
Interest	Rs m	36	33	-7.7%
Profit before tax	Rs m	64	126	96.4%
Tax	Rs m	18	33	85.0%
Profit after tax	Rs m	47	94	100.7%
Gross profit margin	%	14.9	22.0
Effective tax rate	%	27.5	25.9
Net profit margin	%	6.9	12.9

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TRIDENT TECHLABS LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 386 million as compared to Rs 143 million in FY23, thereby witnessing an increase of 169.4%.
• Long-term debt down at Rs 131 million as compared to Rs 160 million during FY23, a fall of 18.0%.
• Current assets rose 96% and stood at Rs 914 million, while fixed assets rose 120% and stood at Rs 70 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 984 million as against Rs 497 million during FY23, thereby witnessing a growth of 98%.

TRIDENT TECHLABS LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	196	466	137.7
Current Liabilities	Rs m	143	386	169.4
Long-term Debt	Rs m	160	131	-18.0
Total Liabilities	Rs m	497	984	98.0
Current assets	Rs m	465	914	96.4
Fixed Assets	Rs m	32	70	120.2
Total Assets	Rs m	497	984	98.0

TRIDENT TECHLABS LTD. Cash Flow Statement Analysis

• TRIDENT TECHLABS LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -174 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -39 million, an improvement of 1,081.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 215 million, an improvement of 293% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs -1 million net cash flows seen during FY23.

TRIDENT TECHLABS 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	114	-174	-
Cash Flow from Investing Activities	Rs m	-3	-39	-
Cash Flow from Financing Activities	Rs m	-111	215	-
Net Cash Flow	Rs m	-1	2	-

Current Valuations for TRIDENT TECHLABS LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an decline from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 836.0, stands at 154.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 31.0 times, while the price to sales ratio stands at 19.9 times.
• The company's price to cash flow (P/CF) ratio stood at 34.1 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	240.5	42.0
TTM Earnings per share	Rs	16.7	5.4
Diluted earnings per share	Rs	2.7	5.4
Price to Cash Flow	x	0.0	34.1
TTM P/E ratio	x	0.0	154.2
Price / Book Value ratio	x	0.0	7.1
Market Cap	Rs m	0	3,327
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TRIDENT TECHLABS LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 3.2x 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 4.8x during FY24, from 2.8x 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 20.1% during FY24, from 23.8% 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 26.8% during FY24, from 28.3% 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 12.9% during FY24, from 16.7% 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	3.2	2.4
Debtors’ Days	Days	2,030	2,997
Interest coverage	x	2.8	4.8
Debt to equity ratio	x	0.8	0.3
Return on assets	%	16.7	12.9
Return on equity	%	23.8	20.1
Return on capital employed	%	28.3	26.8

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

TRIDENT TECHLABS LTD. Share Price Performance

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