ALLSEC TECHNOLOGIES 2022-23 Annual Report Analysis

Wed, 25 Oct

ALLSEC TECHNOLOGIES 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.

ALLSEC TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 23.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.6% in FY23 as against 25.2% in FY22.
• Depreciation charges increased by 20.5% and finance costs increased by 83.0% YoY, respectively.
• Other income grew by 22.5% YoY.
• Net profit for the year grew by 37.1% YoY.
• Net profit margins during the year grew from 11.2% in FY22 to 12.5% in FY23.

ALLSEC TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,172	3,905	23.1%
Other income	Rs m	69	85	22.5%
Total Revenues	Rs m	3,241	3,989	23.1%
Gross profit	Rs m	798	882	10.5%
Depreciation	Rs m	235	283	20.5%
Interest	Rs m	21	39	83.0%
Profit before tax	Rs m	612	645	5.5%
Tax	Rs m	255	157	-38.5%
Profit after tax	Rs m	356	489	37.1%
Gross profit margin	%	25.2	22.6
Effective tax rate	%	41.7	24.3
Net profit margin	%	11.2	12.5

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ALLSEC TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 711 million as compared to Rs 504 million in FY22, thereby witnessing an increase of 41.0%.
• Current assets rose 14% and stood at Rs 2 billion, while fixed assets rose 13% and stood at Rs 919 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 14%.

ALLSEC TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,094	2,297	9.7
Current Liabilities	Rs m	504	711	41.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,876	3,266	13.6
Current assets	Rs m	2,063	2,347	13.8
Fixed Assets	Rs m	813	919	13.1
Total Assets	Rs m	2,876	3,266	13.6

ALLSEC TECHNOLOGIES Cash Flow Statement Analysis

• ALLSEC TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 713 million, an improvement of 11.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -174 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -516 million, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 87 million from the Rs -672 million net cash flows seen during FY22.

ALLSEC TECHNOLOGIES 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	637	713	11.8%
Cash Flow from Investing Activities	Rs m	-207	-174	-
Cash Flow from Financing Activities	Rs m	-1,123	-516	-
Net Cash Flow	Rs m	-672	87	-

Current Valuations for ALLSEC TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.1, an improvement from the EPS of Rs 23.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 629.0, stands at 18.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.9 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	208.1	256.2
TTM Earnings per share	Rs	23.4	32.1
Diluted earnings per share	Rs	23.4	32.1
Price to Cash Flow	x	13.5	9.9
TTM P/E ratio	x	22.4	18.8
Price / Book Value ratio	x	3.8	3.3
Market Cap	Rs m	7,959	7,621
Dividends per share (Unadj.)	Rs	45.0	20.0

Ratio Analysis for ALLSEC TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY23, from 4.1x 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 17.6x during FY23, from 29.8x 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 21.3% during FY23, from 17.0% 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 29.8% during FY23, from 30.2% 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 16.1% during FY23, from 13.1% 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	4.1	3.3
Debtors’ Days	Days	658	554
Interest coverage	x	29.8	17.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.1	16.1
Return on equity	%	17.0	21.3
Return on capital employed	%	30.2	29.8

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

ALLSEC TECHNOLOGIES Share Price Performance

Over the last one year, ALLSEC TECHNOLOGIES share price has moved up from Rs 512.6 to Rs 629.0, registering a gain of Rs 116.4 or around 22.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,902.5 (down 1.1%). Over the last one year it has moved up from 28,930.6 to 30,902.5, a gain of 1,972 points (up 6.8%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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