ZEAL GLOBAL SERVICES 2022-23 Annual Report Analysis

Mon, 26 Feb

ZEAL GLOBAL SERVICES 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.

ZEAL GLOBAL SERVICES Income Statement Analysis

• Operating income during the year fell 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 102.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY23 as against 6.1% in FY22.
• Depreciation charges increased by 264.5% and finance costs increased by 610.1% YoY, respectively.
• Other income grew by 167.4% YoY.
• Net profit for the year grew by 86.2% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 8.7% in FY23.

ZEAL GLOBAL SERVICES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,211	1,122	-7.3%
Other income	Rs m	2	5	167.4%
Total Revenues	Rs m	1,213	1,127	-7.1%
Gross profit	Rs m	74	149	102.6%
Depreciation	Rs m	3	9	264.5%
Interest	Rs m	2	13	610.1%
Profit before tax	Rs m	71	132	85.9%
Tax	Rs m	19	35	84.9%
Profit after tax	Rs m	52	98	86.2%
Gross profit margin	%	6.1	13.3
Effective tax rate	%	26.3	26.2
Net profit margin	%	4.3	8.7

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ZEAL GLOBAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 372 million as compared to Rs 187 million in FY22, thereby witnessing an increase of 99.2%.
• Long-term debt down at Rs 2 million as compared to Rs 3 million during FY22, a fall of 34.5%.
• Current assets rose 26% and stood at Rs 339 million, while fixed assets rose 443% and stood at Rs 261 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 600 million as against Rs 318 million during FY22, thereby witnessing a growth of 89%.

ZEAL GLOBAL SERVICES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	128	225	75.9
Current Liabilities	Rs m	187	372	99.2
Long-term Debt	Rs m	3	2	-34.5
Total Liabilities	Rs m	318	600	88.6
Current assets	Rs m	270	339	25.5
Fixed Assets	Rs m	48	261	442.6
Total Assets	Rs m	318	600	88.6

ZEAL GLOBAL SERVICES Cash Flow Statement Analysis

• ZEAL GLOBAL SERVICES's cash flow from operating activities (CFO) during FY23 stood at Rs -90 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -87 million, an improvement of 92.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 143 million, an improvement of 9,759% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -35 million from the Rs 24 million net cash flows seen during FY22.

ZEAL GLOBAL SERVICES 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	68	-90	-
Cash Flow from Investing Activities	Rs m	-45	-87	-
Cash Flow from Financing Activities	Rs m	1	143	9,758.6%
Net Cash Flow	Rs m	24	-35	-

Current Valuations for ZEAL GLOBAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an decline from the EPS of Rs 26.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 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	621.0	114.8
TTM Earnings per share	Rs	26.9	10.0
Diluted earnings per share	Rs	3.9	7.3
Price to Cash Flow	x	0.0	0.0
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	0
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZEAL GLOBAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.4x 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 11.5x during FY23, from 41.0x 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 43.5% during FY23, from 41.1% 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 improved and stood at 64.0% during FY23, from 56.0% 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 improved and stood at 18.4% during FY23, from 17.0% 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	1.4	0.9
Debtors’ Days	Days	388	512
Interest coverage	x	41.0	11.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.0	18.4
Return on equity	%	41.1	43.5
Return on capital employed	%	56.0	64.0

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

ZEAL GLOBAL SERVICES Share Price Performance

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(To know more, check out historical annual results for ZEAL GLOBAL SERVICES and quarterly results for ZEAL GLOBAL SERVICES)