LATENT VIEW ANALYTICS 2022-23 Annual Report Analysis

Sun, 9 Jul

LATENT VIEW ANALYTICS 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.

LATENT VIEW ANALYTICS Income Statement Analysis

• Operating income during the year rose 32.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY23 as against 35.5% in FY22.
• Depreciation charges increased by 8.1% and finance costs decreased by 15.4% YoY, respectively.
• Other income grew by 165.9% YoY.
• Net profit for the year grew by 20.0% YoY.
• Net profit margins during the year declined from 31.8% in FY22 to 28.8% in FY23.

LATENT VIEW ANALYTICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,078	5,388	32.1%
Other income	Rs m	210	558	165.9%
Total Revenues	Rs m	4,288	5,945	38.7%
Gross profit	Rs m	1,446	1,452	0.4%
Depreciation	Rs m	82	88	8.1%
Interest	Rs m	33	28	-15.4%
Profit before tax	Rs m	1,542	1,894	22.8%
Tax	Rs m	247	339	37.6%
Profit after tax	Rs m	1,295	1,554	20.0%
Gross profit margin	%	35.5	26.9
Effective tax rate	%	16.0	17.9
Net profit margin	%	31.8	28.8

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LATENT VIEW ANALYTICS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 340 million as compared to Rs 499 million in FY22, thereby witnessing an decrease of -31.9%.
• Long-term debt down at Rs 3 million as compared to Rs 4 million during FY22, a fall of 21.7%.
• Current assets rose 4% and stood at Rs 9 billion, while fixed assets rose 76% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 16%.

LATENT VIEW ANALYTICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,234	12,025	17.5
Current Liabilities	Rs m	499	340	-31.9
Long-term Debt	Rs m	4	3	-21.7
Total Liabilities	Rs m	10,737	12,440	15.9
Current assets	Rs m	9,019	9,424	4.5
Fixed Assets	Rs m	1,718	3,016	75.6
Total Assets	Rs m	10,737	12,440	15.9

LATENT VIEW ANALYTICS Cash Flow Statement Analysis

• LATENT VIEW ANALYTICS's cash flow from operating activities (CFO) during FY23 stood at Rs 974 million, an improvement of 11.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -41 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY22.

LATENT VIEW ANALYTICS 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	874	974	11.5%
Cash Flow from Investing Activities	Rs m	-4,390	-2,849	-
Cash Flow from Financing Activities	Rs m	4,488	-41	-
Net Cash Flow	Rs m	1,017	-1,834	-

Current Valuations for LATENT VIEW ANALYTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an improvement from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 370.0, stands at 48.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 14.1 times.
• The company's price to cash flow (P/CF) ratio stood at 53.1 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	20.3	26.3
TTM Earnings per share	Rs	6.5	7.6
Diluted earnings per share	Rs	6.3	7.6
Price to Cash Flow	x	62.9	53.1
TTM P/E ratio	x	66.9	48.8
Price / Book Value ratio	x	11.0	7.3
Market Cap	Rs m	112,587	87,247
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LATENT VIEW ANALYTICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 27.8x during FY23, from 18.1x 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 69.9x during FY23, from 48.4x 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 12.9% during FY23, from 12.7% 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 16.0% during FY23, from 15.4% 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 12.7% during FY23, from 12.4% 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	18.1	27.8
Debtors’ Days	Days	75	67
Interest coverage	x	48.4	69.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.4	12.7
Return on equity	%	12.7	12.9
Return on capital employed	%	15.4	16.0

To see how LATENT VIEW ANALYTICS has performed over the last 5 years, please visit here.

LATENT VIEW ANALYTICS Share Price Performance

Over the last one year, LATENT VIEW ANALYTICS share price has moved up from Rs 365.8 to Rs 370.0, registering a gain of Rs 4.2 or around 1.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,834.1 (down 0.8%). Over the last one year it has moved up from 28,798.1 to 29,834.1, a gain of 1,036 points (up 3.6%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for LATENT VIEW ANALYTICS and quarterly results for LATENT VIEW ANALYTICS)