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ONMOBILE GLOBAL 2022-23 Annual Report Analysis

Fri, 31 Mar

ONMOBILE 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.

ONMOBILE GLOBAL Income Statement Analysis

• Operating income during the year rose 1.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 83.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.3% in FY23 as against 8.0% in FY22.
• Depreciation charges decreased by 1.1% and finance costs decreased by 12.2% YoY, respectively.
• Other income declined by 31.2% YoY.
• Net profit for the year declined by 79.1% YoY.
• Net profit margins during the year declined from 6.2% in FY22 to 1.3% in FY23.

ONMOBILE GLOBAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,195	5,252	1.1%
Other income	Rs m	174	120	-31.2%
Total Revenues	Rs m	5,370	5,372	0.0%
Gross profit	Rs m	418	70	-83.3%
Depreciation	Rs m	104	103	-1.1%
Interest	Rs m	17	15	-12.2%
Profit before tax	Rs m	472	72	-84.8%
Tax	Rs m	147	4	-97.3%
Profit after tax	Rs m	325	68	-79.1%
Gross profit margin	%	8.0	1.3
Effective tax rate	%	31.2	5.6
Net profit margin	%	6.2	1.3

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ONMOBILE GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -2.6%.
• Current assets fell 16% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 1%.

ONMOBILE GLOBAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,491	6,451	-0.6
Current Liabilities	Rs m	2,385	2,323	-2.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,616	8,547	-0.8
Current assets	Rs m	4,057	3,411	-15.9
Fixed Assets	Rs m	4,558	5,136	12.7
Total Assets	Rs m	8,616	8,547	-0.8

ONMOBILE GLOBAL Cash Flow Statement Analysis

• ONMOBILE GLOBAL's cash flow from operating activities (CFO) during FY23 stood at Rs 444 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -336 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -85 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 42 million from the Rs -191 million net cash flows seen during FY22.

ONMOBILE 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	-242	444	-
Cash Flow from Investing Activities	Rs m	169	-336	-
Cash Flow from Financing Activities	Rs m	-115	-85	-
Net Cash Flow	Rs m	-191	42	-

Current Valuations for ONMOBILE GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.3, stands at 95.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 76.9 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	49.2	49.5
TTM Earnings per share	Rs	3.1	0.6
Diluted earnings per share	Rs	3.1	0.6
Price to Cash Flow	x	28.5	76.9
TTM P/E ratio	x	37.7	95.6
Price / Book Value ratio	x	2.2	2.0
Market Cap	Rs m	14,098	13,102
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for ONMOBILE GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 deteriorated and stood at 5.7x during FY23, from 28.3x 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 1.1% during FY23, from 5.0% 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 1.3% during FY23, from 7.5% 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 1.0% during FY23, from 4.0% 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	1.5
Debtors’ Days	Days	113	92
Interest coverage	x	28.3	5.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.0	1.0
Return on equity	%	5.0	1.1
Return on capital employed	%	7.5	1.3

To see how ONMOBILE GLOBAL has performed over the last 5 years, please visit here.

ONMOBILE GLOBAL Share Price Performance

Over the last one year, ONMOBILE GLOBAL share price has moved down from Rs 114.8 to Rs 60.3, registering a loss of Rs 54.5 or around 47.5%.

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 ONMOBILE GLOBAL and quarterly results for ONMOBILE GLOBAL)