ZEN TECHNOLOGIES 2023-24 Annual Report Analysis

Tue, 27 Aug

ZEN 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.

ZEN TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 101.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 145.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.6% in FY24 as against 34.1% in FY23.
• Depreciation charges increased by 59.8% and finance costs decreased by 44.0% YoY, respectively.
• Other income grew by 105.9% YoY.
• Net profit for the year grew by 159.2% YoY.
• Net profit margins during the year grew from 22.8% in FY23 to 29.4% in FY24.

ZEN TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,188	4,399	101.0%
Other income	Rs m	72	149	105.9%
Total Revenues	Rs m	2,261	4,548	101.1%
Gross profit	Rs m	746	1,832	145.5%
Depreciation	Rs m	61	97	59.8%
Interest	Rs m	41	23	-44.0%
Profit before tax	Rs m	717	1,862	159.5%
Tax	Rs m	218	567	160.4%
Profit after tax	Rs m	500	1,295	159.2%
Gross profit margin	%	34.1	41.6
Effective tax rate	%	30.3	30.4
Net profit margin	%	22.8	29.4

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

ZEN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 92.6%.
• Current assets rose 86% and stood at Rs 6 billion, while fixed assets rose 4% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 63%.

ZEN TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,132	4,458	42.3
Current Liabilities	Rs m	1,402	2,699	92.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,596	7,505	63.3
Current assets	Rs m	3,320	6,183	86.2
Fixed Assets	Rs m	1,276	1,322	3.6
Total Assets	Rs m	4,596	7,505	63.3

ZEN TECHNOLOGIES Cash Flow Statement Analysis

• ZEN TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 134 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -852 million, an improvement of 2,209.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -33 million, an improvement of 85% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -751 million from the Rs 908 million net cash flows seen during FY23.

ZEN 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	1,164	134	-88.5%
Cash Flow from Investing Activities	Rs m	-37	-852	-
Cash Flow from Financing Activities	Rs m	-219	-33	-
Net Cash Flow	Rs m	908	-751	-

Current Valuations for ZEN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,883.5, stands at 98.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 35.5 times, while the price to sales ratio stands at 36.0 times.
• The company's price to cash flow (P/CF) ratio stood at 38.7 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	27.5	52.3
TTM Earnings per share	Rs	6.3	15.4
Diluted earnings per share	Rs	5.9	15.4
Price to Cash Flow	x	49.1	38.7
TTM P/E ratio	x	55.1	98.6
Price / Book Value ratio	x	6.0	12.1
Market Cap	Rs m	18,927	53,824
Dividends per share (Unadj.)	Rs	0.2	1.0

Ratio Analysis for ZEN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.4x 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 82.6x during FY24, from 18.6x 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 29.1% during FY24, from 16.0% 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 42.3% during FY24, from 24.2% 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 17.6% during FY24, from 11.8% 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	2.4	2.3
Debtors’ Days	Days	1,424	1,531
Interest coverage	x	18.6	82.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	17.6
Return on equity	%	16.0	29.1
Return on capital employed	%	24.2	42.3

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

ZEN TECHNOLOGIES Share Price Performance

Over the last one year, ZEN TECHNOLOGIES share price has moved up from Rs 813.8 to Rs 1,883.5, registering a gain of Rs 1,069.7 or around 131.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,550.7 (up 0.3%). Over the last one year it has moved up from 31,264.9 to 42,550.7, a gain of 11,286 points (up 36.1%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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