KSOLVES INDIA 2024-25 Annual Report Analysis

Wed, 4 Mar

KSOLVES INDIA has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

KSOLVES INDIA Income Statement Analysis

• Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 34.9% in FY25 as against 42.8% in FY24.
• Depreciation charges increased by 155.9% and finance costs increased by 280.5% YoY, respectively.
• Other income grew by 31.3% YoY.
• Net profit for the year grew by 0.5% YoY.
• Net profit margins during the year declined from 31.4% in FY24 to 25.0% in FY25.

KSOLVES INDIA Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	1,086	1,374	26.5%
Other income	Rs m	3	4	31.3%
Total Revenues	Rs m	1,090	1,379	26.5%
Gross profit	Rs m	465	480	3.3%
Depreciation	Rs m	9	22	155.9%
Interest	Rs m	1	4	280.5%
Profit before tax	Rs m	459	458	-0.1%
Tax	Rs m	117	115	-1.9%
Profit after tax	Rs m	342	343	0.5%
Gross profit margin	%	42.8	34.9
Effective tax rate	%	25.5	25.1
Net profit margin	%	31.4	25.0

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KSOLVES INDIA Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 276 million as compared to Rs 137 million in FY24, thereby witnessing an increase of 101.6%.
• Current assets rose 29% and stood at Rs 467 million, while fixed assets rose 200% and stood at Rs 87 million in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 554 million as against Rs 390 million during FY24, thereby witnessing a growth of 42%.

KSOLVES INDIA Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	238	208	-12.9
Current Liabilities	Rs m	137	276	101.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	390	554	42.0
Current assets	Rs m	361	467	29.3
Fixed Assets	Rs m	29	87	200.0
Total Assets	Rs m	390	554	42.0

KSOLVES INDIA Cash Flow Statement Analysis

• KSOLVES INDIA's cash flow from operating activities (CFO) during FY25 stood at Rs 341 million, an improvement of 2.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -76 million, an improvement of 300.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -234 million, an improvement of 28% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 31 million from the Rs -13 million net cash flows seen during FY24.

KSOLVES INDIA Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	332	341	2.6%
Cash Flow from Investing Activities	Rs m	-19	-76	-
Cash Flow from Financing Activities	Rs m	-326	-234	-
Net Cash Flow	Rs m	-13	31	-

Current Valuations for KSOLVES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.5, an decline from the EPS of Rs 28.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 435.8, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 49.8 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 31.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	91.6	58.0
TTM Earnings per share	Rs	28.8	14.5
Diluted earnings per share	Rs	14.4	14.5
Price to Cash Flow	x	37.8	31.1
TTM P/E ratio	x	38.8	30.1
Price / Book Value ratio	x	47.3	54.8
Market Cap	Rs m	11,279	11,370
Dividends per share (Unadj.)	Rs	9.8	15.5

Ratio Analysis for KSOLVES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY25, from 2.6x during FY24. 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 103.0x during FY25, from 389.7x during FY24. 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 165.4% during FY25, from 143.3% during FY25. 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 222.9% during FY25, from 193.0% during FY24. 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 62.7% during FY25, from 87.8% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	2.6	1.7
Debtors’ Days	Days	539	561
Interest coverage	x	389.7	103.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	87.8	62.7
Return on equity	%	143.3	165.4
Return on capital employed	%	193.0	222.9

To see how KSOLVES INDIA has performed over the last 5 years, please visit here.

KSOLVES INDIA Share Price Performance

Over the last one year, KSOLVES INDIA share price has moved down from Rs 558.5 to Rs 435.8, registering a loss of Rs 122.7 or around 22.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 36,122.7 (down 1.8%). Over the last one year it has moved up from 35,644.8 to 36,122.7, a gain of 478 points (up 1.3%).

Overall, the S&P BSE SENSEX is up 6.1% over the year.

(To know more, check out historical annual results for KSOLVES INDIA and quarterly results for KSOLVES INDIA)