DATAMATICS GLOBAL 2021-22 Annual Report Analysis

Wed, 20 Jul

DATAMATICS GLOBAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DATAMATICS GLOBAL Income Statement Analysis

• Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in FY22 as against 12.0% in FY21.
• Depreciation charges decreased by 15.7% and finance costs decreased by 12.0% YoY, respectively.
• Other income grew by 76.4% YoY.
• Net profit for the year grew by 86.0% YoY.
• Net profit margins during the year grew from 7.3% in FY21 to 12.9% in FY22.

DATAMATICS GLOBAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,491	12,010	4.5%
Other income	Rs m	157	278	76.4%
Total Revenues	Rs m	11,648	12,288	5.5%
Gross profit	Rs m	1,374	2,017	46.9%
Depreciation	Rs m	395	333	-15.7%
Interest	Rs m	47	41	-12.0%
Profit before tax	Rs m	1,089	1,921	76.3%
Tax	Rs m	254	367	44.6%
Profit after tax	Rs m	836	1,554	86.0%
Gross profit margin	%	12.0	16.8
Effective tax rate	%	23.3	19.1
Net profit margin	%	7.3	12.9

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DATAMATICS GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 39.7%.
• Current assets rose 25% and stood at Rs 8 billion, while fixed assets rose 16% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 22%.

DATAMATICS GLOBAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,154	8,570	19.8
Current Liabilities	Rs m	1,546	2,160	39.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,927	10,929	22.4
Current assets	Rs m	6,414	8,018	25.0
Fixed Assets	Rs m	2,512	2,911	15.9
Total Assets	Rs m	8,927	10,929	22.4

DATAMATICS GLOBAL Cash Flow Statement Analysis

• DATAMATICS GLOBAL's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion, an improvement of 63.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 69.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 207 million, an improvement of 119% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 689 million from the Rs -957 million net cash flows seen during FY21.

DATAMATICS GLOBAL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,116	1,824	63.4%
Cash Flow from Investing Activities	Rs m	-793	-1,342	-
Cash Flow from Financing Activities	Rs m	-1,088	207	-
Net Cash Flow	Rs m	-957	689	-

Current Valuations for DATAMATICS GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.4, an improvement from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 308.0, stands at 11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 7.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	194.9	203.7
TTM Earnings per share	Rs	14.2	26.4
Diluted earnings per share	Rs	14.2	26.4
Price to Cash Flow	x	5.5	7.7
TTM P/E ratio	x	8.1	11.7
Price / Book Value ratio	x	0.7	1.7
Market Cap	Rs m	5,118	14,454
Dividends per share (Unadj.)	Rs	0.0	3.8

Ratio Analysis for DATAMATICS GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY22, from 4.1x during FY21. 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 47.5x during FY22, from 24.2x during FY21. 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 18.1% during FY22, from 11.7% during FY22. 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 22.9% during FY22, from 15.9% during FY21. 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 14.6% during FY22, from 9.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	4.1	3.7
Debtors’ Days	Days	58	74
Interest coverage	x	24.2	47.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.9	14.6
Return on equity	%	11.7	18.1
Return on capital employed	%	15.9	22.9

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

DATAMATICS GLOBAL Share Price Performance

Over the last one year, DATAMATICS GLOBAL share price has moved down from Rs 313.4 to Rs 308.0, registering a loss of Rs 5.4 or around 1.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,735.9 (up 2.7%). Over the last one year it has moved down from 29,914.2 to 28,735.9, a loss of 1,178 points (down 3.9%).

Overall, the S&P BSE SENSEX is up 5.7% over the year.

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

Read: Latest Annual Report Analysis of DATAMATICS GLOBAL