UPDATER SERVICES LTD. 2023-24 Annual Report Analysis

Tue, 18 Jun

UPDATER SERVICES 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.

UPDATER SERVICES LTD. Income Statement Analysis

• Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.5% in FY24 as against 4.4% in FY23.
• Depreciation charges increased by 45.7% and finance costs increased by 32.4% YoY, respectively.
• Other income grew by 78.8% YoY.
• Net profit for the year grew by 91.5% YoY.
• Net profit margins during the year grew from 1.6% in FY23 to 2.7% in FY24.

UPDATER SERVICES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,989	24,444	16.5%
Other income	Rs m	132	236	78.8%
Total Revenues	Rs m	21,121	24,680	16.8%
Gross profit	Rs m	926	1,342	45.0%
Depreciation	Rs m	370	540	45.7%
Interest	Rs m	146	193	32.4%
Profit before tax	Rs m	542	846	56.1%
Tax	Rs m	196	183	-6.5%
Profit after tax	Rs m	346	663	91.5%
Gross profit margin	%	4.4	5.5
Effective tax rate	%	36.1	21.7
Net profit margin	%	1.6	2.7

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

UPDATER SERVICES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an decrease of -5.9%.
• Long-term debt down at Rs 0 million as compared to Rs 179 million during FY23, a fall of 99.8%.
• Current assets rose 41% and stood at Rs 10 billion, while fixed assets rose 7% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 27%.

UPDATER SERVICES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,755	8,322	121.6
Current Liabilities	Rs m	5,992	5,636	-5.9
Long-term Debt	Rs m	179	0	-99.8
Total Liabilities	Rs m	11,681	14,874	27.3
Current assets	Rs m	7,018	9,862	40.5
Fixed Assets	Rs m	4,664	5,011	7.4
Total Assets	Rs m	11,681	14,874	27.3

UPDATER SERVICES LTD. Cash Flow Statement Analysis

• UPDATER SERVICES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 133.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 133% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -311 million from the Rs 574 million net cash flows seen during FY23.

UPDATER SERVICES 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	1,148	1,026	-10.6%
Cash Flow from Investing Activities	Rs m	-1,530	-3,564	-
Cash Flow from Financing Activities	Rs m	956	2,227	133.0%
Net Cash Flow	Rs m	574	-311	-

Current Valuations for UPDATER SERVICES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 303.0, stands at 30.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	396.4	365.1
TTM Earnings per share	Rs	6.5	9.9
Diluted earnings per share	Rs	5.2	9.9
Price to Cash Flow	x	0.0	17.4
TTM P/E ratio	x	0.0	30.6
Price / Book Value ratio	x	0.0	2.5
Market Cap	Rs m	0	20,947
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UPDATER SERVICES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.2x 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 5.4x during FY24, from 4.7x 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 8.0% during FY24, from 9.2% 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 12.5% during FY24, from 17.5% 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 5.8% during FY24, from 4.2% 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	1.2	1.7
Debtors’ Days	Days	74	75
Interest coverage	x	4.7	5.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	5.8
Return on equity	%	9.2	8.0
Return on capital employed	%	17.5	12.5

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

UPDATER SERVICES LTD. Share Price Performance

Over the last one year, UPDATER SERVICES LTD. share price has moved up from Rs 0.0 to Rs 303.0, registering a gain of Rs 303.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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