GENESYS INTL. 2022-23 Annual Report Analysis

Mon, 19 Feb

GENESYS INTL. 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.

GENESYS INTL. Income Statement Analysis

• Operating income during the year rose 51.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.4% in FY23 as against 14.6% in FY22.
• Depreciation charges increased by 94.5% and finance costs increased by 12.7% YoY, respectively.
• Other income grew by 93.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 33.2% in FY22 to 8.2% in FY23.

GENESYS INTL. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,196	1,811	51.4%
Other income	Rs m	34	65	93.0%
Total Revenues	Rs m	1,230	1,876	52.5%
Gross profit	Rs m	-175	586	NA
Depreciation	Rs m	191	372	94.5%
Interest	Rs m	26	29	12.7%
Profit before tax	Rs m	-359	250	NA
Tax	Rs m	38	101	163.7%
Profit after tax	Rs m	-397	149	NA
Gross profit margin	%	-14.6	32.4
Effective tax rate	%	-10.6	40.3
Net profit margin	%	-33.2	8.2

Emerging Opportunity: Bluechip Bull Run

GENESYS INTL. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 691 million as compared to Rs 808 million in FY22, thereby witnessing an decrease of -14.5%.
• Long-term debt stood at Rs 173 million as compared to Rs 13 million during FY22, a growth of 1207.9%.
• Current assets rose 79% and stood at Rs 2 billion, while fixed assets rose 43% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 59%.

GENESYS INTL. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,012	3,833	90.5
Current Liabilities	Rs m	808	691	-14.5
Long-term Debt	Rs m	13	173	1,207.9
Total Liabilities	Rs m	3,034	4,825	59.0
Current assets	Rs m	1,358	2,434	79.3
Fixed Assets	Rs m	1,676	2,390	42.6
Total Assets	Rs m	3,034	4,825	59.0

GENESYS INTL. Cash Flow Statement Analysis

• GENESYS INTL.'s cash flow from operating activities (CFO) during FY23 stood at Rs -352 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 841.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 1,704% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -88 million from the Rs 200 million net cash flows seen during FY22.

GENESYS INTL. 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	281	-352	-
Cash Flow from Investing Activities	Rs m	-200	-1,885	-
Cash Flow from Financing Activities	Rs m	119	2,149	1,704.5%
Net Cash Flow	Rs m	200	-88	-

Current Valuations for GENESYS INTL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs -12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 328.9, stands at 87.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 35.3 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	38.1	48.0
TTM Earnings per share	Rs	-12.7	4.0
Diluted earnings per share	Rs	-10.0	3.8
Price to Cash Flow	x	-109.6	35.3
TTM P/E ratio	x	-56.8	87.1
Price / Book Value ratio	x	5.6	4.8
Market Cap	Rs m	11,195	18,413
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GENESYS INTL.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY23, from 1.7x 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 9.5x during FY23, from -12.8x 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 3.9% during FY23, from -19.7% 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 improved and stood at 7.0% during FY23, from -16.4% 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 3.7% during FY23, from -12.2% 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	1.7	3.5
Debtors’ Days	Days	1,499	1,677
Interest coverage	x	-12.8	9.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-12.2	3.7
Return on equity	%	-19.7	3.9
Return on capital employed	%	-16.4	7.0

To see how GENESYS INTL. has performed over the last 5 years, please visit here.

GENESYS INTL. Share Price Performance

Over the last one year, GENESYS INTL. share price has moved down from Rs 570.3 to Rs 328.9, registering a loss of Rs 241.4 or around 42.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,479.0 (up 2.5%). Over the last one year it has moved down from 36,402.7 to 28,479.0, a loss of 7,924 points (down 21.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for GENESYS INTL. and quarterly results for GENESYS INTL.)