ORACLE FINANCIAL 2022-23 Annual Report Analysis

Sat, 1 Jul

ORACLE FINANCIAL 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.

ORACLE FINANCIAL Income Statement Analysis

• Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 43.1% in FY23 as against 47.7% in FY22.
• Depreciation charges decreased by 13.1% and finance costs increased by 3.7% YoY, respectively.
• Other income grew by 47.6% YoY.
• Net profit for the year declined by 4.4% YoY.
• Net profit margins during the year declined from 36.2% in FY22 to 31.7% in FY23.

ORACLE FINANCIAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	52,215	56,983	9.1%
Other income	Rs m	1,406	2,075	47.6%
Total Revenues	Rs m	53,621	59,059	10.1%
Gross profit	Rs m	24,927	24,557	-1.5%
Depreciation	Rs m	928	807	-13.1%
Interest	Rs m	122	127	3.7%
Profit before tax	Rs m	25,283	25,699	1.6%
Tax	Rs m	6,395	7,638	19.4%
Profit after tax	Rs m	18,888	18,061	-4.4%
Gross profit margin	%	47.7	43.1
Effective tax rate	%	25.3	29.7
Net profit margin	%	36.2	31.7

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ORACLE FINANCIAL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 10.6%.
• Current assets rose 8% and stood at Rs 72 billion, while fixed assets fell 0% and stood at Rs 19 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 91 billion as against Rs 86 billion during FY22, thereby witnessing a growth of 6%.

ORACLE FINANCIAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	69,436	73,056	5.2
Current Liabilities	Rs m	9,889	10,941	10.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	85,924	91,188	6.1
Current assets	Rs m	66,423	71,689	7.9
Fixed Assets	Rs m	19,502	19,499	0.0
Total Assets	Rs m	85,924	91,188	6.1

ORACLE FINANCIAL Cash Flow Statement Analysis

• ORACLE FINANCIAL's cash flow from operating activities (CFO) during FY23 stood at Rs 18 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -17 billion, an improvement of 4% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 billion from the Rs -149 million net cash flows seen during FY22.

ORACLE FINANCIAL 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	18,562	17,584	-5.3%
Cash Flow from Investing Activities	Rs m	-1,673	1,371	-
Cash Flow from Financing Activities	Rs m	-17,335	-16,655	-
Net Cash Flow	Rs m	-149	3,601	-

Current Valuations for ORACLE FINANCIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 209.0, an decline from the EPS of Rs 219.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,860.7, stands at 18.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.2 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	605.4	659.5
TTM Earnings per share	Rs	219.0	209.0
Diluted earnings per share	Rs	218.4	208.8
Price to Cash Flow	x	15.7	15.2
TTM P/E ratio	x	16.4	18.5
Price / Book Value ratio	x	5.2	3.9
Market Cap	Rs m	358,768	286,556
Dividends per share (Unadj.)	Rs	190.0	225.0

Ratio Analysis for ORACLE FINANCIAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.6x during FY23, from 6.7x 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 204.1x during FY23, from 208.2x 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 declined and down at 24.7% during FY23, from 27.2% 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 declined and down at 35.4% during FY23, from 36.6% 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 declined and down at 19.9% during FY23, from 22.1% 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	6.7	6.6
Debtors’ Days	Days	65	69
Interest coverage	x	208.2	204.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.1	19.9
Return on equity	%	27.2	24.7
Return on capital employed	%	36.6	35.4

To see how ORACLE FINANCIAL has performed over the last 5 years, please visit here.

ORACLE FINANCIAL Share Price Performance

Over the last one year, ORACLE FINANCIAL share price has moved up from Rs 3,061.2 to Rs 3,860.7, registering a gain of Rs 799.5 or around 26.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,876.5 (up 2.3%). Over the last one year it has moved up from 28,517.7 to 29,876.5, a gain of 1,359 points (up 4.8%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for ORACLE FINANCIAL and quarterly results for ORACLE FINANCIAL)