ACCELYA SOLUTIONS 2022-23 Annual Report Analysis

Mon, 9 Oct

ACCELYA SOLUTIONS has announced its results for the year ended June 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ACCELYA SOLUTIONS Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.9% in FY as against 35.3% in FY.
• Depreciation charges decreased by 4.6% and finance costs decreased by 39.8% YoY, respectively.
• Other income declined by 19.3% YoY.
• Net profit for the year grew by 66.3% YoY.
• Net profit margins during the year grew from 20.7% in FY to 27.0% in FY.

ACCELYA SOLUTIONS Income Statement 2022-23

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Net Sales	Rs m	3,684	4,694	27.4%
Other income	Rs m	122	98	-19.3%
Total Revenues	Rs m	3,806	4,792	25.9%
Gross profit	Rs m	1,299	1,965	51.2%
Depreciation	Rs m	354	338	-4.6%
Interest	Rs m	34	21	-39.8%
Profit before tax	Rs m	1,032	1,704	65.1%
Tax	Rs m	270	437	61.7%
Profit after tax	Rs m	762	1,267	66.3%
Gross profit margin	%	35.3	41.9
Effective tax rate	%	26.2	25.6
Net profit margin	%	20.7	27.0

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ACCELYA SOLUTIONS Balance Sheet Analysis

• The company's current liabilities during FY stood at Rs 2 billion as compared to Rs 2 billion in FY, thereby witnessing an increase of 9.9%.
• Current assets rose 8% and stood at Rs 4 billion, while fixed assets rose 18% and stood at Rs 2 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 5 billion as against Rs 5 billion during FY, thereby witnessing a growth of 11%.

ACCELYA SOLUTIONS Balance Sheet as on June 2023

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Networth	Rs m	2,627	2,700	2.8
Current Liabilities	Rs m	1,765	1,940	9.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,787	5,318	11.1
Current assets	Rs m	3,336	3,600	7.9
Fixed Assets	Rs m	1,451	1,718	18.4
Total Assets	Rs m	4,787	5,318	11.1

ACCELYA SOLUTIONS Cash Flow Statement Analysis

• ACCELYA SOLUTIONS's cash flow from operating activities (CFO) during FY stood at Rs 1 billion, an improvement of 12.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs 132 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 146 million from the Rs -179 million net cash flows seen during FY.

ACCELYA SOLUTIONS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-22	Jun-23
Cash Flow from Operating Activities	Rs m	1,182	1,335	12.9%
Cash Flow from Investing Activities	Rs m	-732	132	-
Cash Flow from Financing Activities	Rs m	-642	-1,324	-
Net Cash Flow	Rs m	-179	146	-

Current Valuations for ACCELYA SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 84.9, an improvement from the EPS of Rs 51.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,688.2, stands at 19.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.3 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Sales per share (Unadj.)	Rs	246.8	314.4
TTM Earnings per share	Rs	51.0	84.9
Diluted earnings per share	Rs	51.0	84.9
Price to Cash Flow	x	11.8	12.1
TTM P/E ratio	x	17.3	19.9
Price / Book Value ratio	x	6.7	7.2
Market Cap	Rs m	17,665	19,486
Dividends per share (Unadj.)	Rs	62.0	65.0

Ratio Analysis for ACCELYA SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY, from 1.9x during FY. 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 83.5x during FY, from 31.1x during FY. 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 46.9% during FY, from 29.0% during FY. 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 63.9% during FY, from 40.6% during FY. 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 24.2% during FY, from 16.6% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Current ratio	x	1.9	1.9
Debtors’ Days	Days	675	599
Interest coverage	x	31.1	83.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.6	24.2
Return on equity	%	29.0	46.9
Return on capital employed	%	40.6	63.9

To see how ACCELYA SOLUTIONS has performed over the last 5 years, please visit here.

ACCELYA SOLUTIONS Share Price Performance

Over the last one year, ACCELYA SOLUTIONS share price has moved up from Rs 1,099.9 to Rs 1,688.2, registering a gain of Rs 588.3 or around 53.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,660.2 (up 0.1%). Over the last one year it has moved up from 28,188.7 to 32,660.2, a gain of 4,471 points (up 15.9%).

Overall, the S&P BSE SENSEX is up 12.7% over the year.

(To know more, check out historical annual results for ACCELYA SOLUTIONS and quarterly results for ACCELYA SOLUTIONS)