DATAMATICS GLOBAL 2022-23 Annual Report Analysis

Tue, 26 Sep

DATAMATICS GLOBAL 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.

DATAMATICS GLOBAL Income Statement Analysis

• Operating income during the year fell 38.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 40.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.4% in FY23 as against 16.8% in FY22.
• Depreciation charges decreased by 62.3% and finance costs decreased by 47.5% YoY, respectively.
• Other income grew by 7.5% YoY.
• Net profit for the year declined by 33.6% YoY.
• Net profit margins during the year grew from 12.9% in FY22 to 14.1% in FY23.

DATAMATICS GLOBAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,010	7,333	-38.9%
Other income	Rs m	278	299	7.5%
Total Revenues	Rs m	12,288	7,631	-37.9%
Gross profit	Rs m	2,017	1,202	-40.4%
Depreciation	Rs m	333	126	-62.3%
Interest	Rs m	41	22	-47.5%
Profit before tax	Rs m	1,921	1,354	-29.5%
Tax	Rs m	367	322	-12.1%
Profit after tax	Rs m	1,554	1,031	-33.6%
Gross profit margin	%	16.8	16.4
Effective tax rate	%	19.1	23.8
Net profit margin	%	12.9	14.1

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DATAMATICS GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -50.2%.
• Current assets fell 37% and stood at Rs 5 billion, while fixed assets rose 34% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 11 billion during FY22, thereby witnessing a fall of 18%.

DATAMATICS GLOBAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,570	7,675	-10.4
Current Liabilities	Rs m	2,160	1,075	-50.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,929	8,970	-17.9
Current assets	Rs m	8,018	5,063	-36.9
Fixed Assets	Rs m	2,911	3,908	34.2
Total Assets	Rs m	10,929	8,970	-17.9

DATAMATICS GLOBAL Cash Flow Statement Analysis

• DATAMATICS GLOBAL's cash flow from operating activities (CFO) during FY23 stood at Rs 640 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 31 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -517 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 154 million from the Rs 689 million net cash flows seen during FY22.

DATAMATICS GLOBAL 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	1,824	640	-64.9%
Cash Flow from Investing Activities	Rs m	-1,342	31	-
Cash Flow from Financing Activities	Rs m	207	-517	-
Net Cash Flow	Rs m	689	154	-77.7%

Current Valuations for DATAMATICS GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.5, an decline from the EPS of Rs 26.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 573.4, stands at 17.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 4.6 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	203.7	124.4
TTM Earnings per share	Rs	26.4	17.5
Diluted earnings per share	Rs	26.4	17.5
Price to Cash Flow	x	9.4	15.2
TTM P/E ratio	x	11.4	17.1
Price / Book Value ratio	x	1.7	2.3
Market Cap	Rs m	14,454	17,611
Dividends per share (Unadj.)	Rs	3.8	5.0

Ratio Analysis for DATAMATICS GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.7x during FY23, from 3.7x 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 improved and stood at 63.4x during FY23, from 47.5x 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 13.4% during FY23, from 18.1% 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 declined and down at 17.9% during FY23, from 22.9% 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 11.7% during FY23, from 14.6% 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	3.7	4.7
Debtors’ Days	Days	74	8
Interest coverage	x	47.5	63.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.6	11.7
Return on equity	%	18.1	13.4
Return on capital employed	%	22.9	17.9

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 up from Rs 305.1 to Rs 573.4, registering a gain of Rs 268.4 or around 88.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,588.9 (down 0.5%). Over the last one year it has moved up from 27,172.0 to 32,588.9, a gain of 5,417 points (up 19.9%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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