TRACXN TECHNOLOGIES 2023-24 Annual Report Analysis

Thu, 24 Oct

TRACXN TECHNOLOGIES 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.

TRACXN TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY24 as against 8.9% in FY23.
• Depreciation charges decreased by 10.5% and finance costs decreased by 1.3% YoY, respectively.
• Other income grew by 24.2% YoY.
• Net profit for the year declined by 80.4% YoY.
• Net profit margins during the year declined from 42.4% in FY23 to 7.9% in FY24.

TRACXN TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	781	828	6.0%
Other income	Rs m	35	44	24.2%
Total Revenues	Rs m	816	871	6.8%
Gross profit	Rs m	69	48	-30.9%
Depreciation	Rs m	2	2	-10.5%
Interest	Rs m	3	3	-1.3%
Profit before tax	Rs m	99	87	-12.7%
Tax	Rs m	-231	22	NA
Profit after tax	Rs m	331	65	-80.4%
Gross profit margin	%	8.9	5.8
Effective tax rate	%	-232.7	25.1
Net profit margin	%	42.4	7.9

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

TRACXN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 384 million as compared to Rs 346 million in FY23, thereby witnessing an increase of 11.1%.
• Current assets rose 22% and stood at Rs 862 million, while fixed assets rose 73% and stood at Rs 60 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 922 million as against Rs 743 million during FY23, thereby witnessing a growth of 24%.

TRACXN TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	292	468	60.1
Current Liabilities	Rs m	346	384	11.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	743	922	24.0
Current assets	Rs m	709	862	21.6
Fixed Assets	Rs m	35	60	72.6
Total Assets	Rs m	743	922	24.0

TRACXN TECHNOLOGIES Cash Flow Statement Analysis

• TRACXN TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 112 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -94 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 22 million from the Rs -6 million net cash flows seen during FY23.

TRACXN TECHNOLOGIES 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	152	112	-25.8%
Cash Flow from Investing Activities	Rs m	-158	-94	-
Cash Flow from Financing Activities	Rs m	0	4	0.0%
Net Cash Flow	Rs m	-6	22	-

Current Valuations for TRACXN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 80.6, stands at 119.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.1 times, while the price to sales ratio stands at 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at 146.7 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	7.8	8.0
TTM Earnings per share	Rs	3.3	0.6
Diluted earnings per share	Rs	3.2	0.6
Price to Cash Flow	x	20.5	146.7
TTM P/E ratio	x	20.6	119.5
Price / Book Value ratio	x	28.0	20.9
Market Cap	Rs m	8,193	9,787
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TRACXN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 2.1x 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 30.1x during FY24, from 33.9x 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 13.9% during FY24, from 113.3% 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 19.2% during FY24, from 35.1% 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 7.4% during FY24, from 44.9% 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	2.1	2.2
Debtors’ Days	Days	457	368
Interest coverage	x	33.9	30.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	44.9	7.4
Return on equity	%	113.3	13.9
Return on capital employed	%	35.1	19.2

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

TRACXN TECHNOLOGIES Share Price Performance

Over the last one year, TRACXN TECHNOLOGIES share price has moved up from Rs 70.3 to Rs 80.6, registering a gain of Rs 10.3 or around 14.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,002.7 (down 0.5%). Over the last one year it has moved up from 31,255.0 to 42,002.7, a gain of 10,748 points (up 34.4%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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