QUINT DIGITAL MEDIA 2022-23 Annual Report Analysis

Fri, 31 Mar

QUINT DIGITAL MEDIA 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.

QUINT DIGITAL MEDIA Income Statement Analysis

• Operating income during the year rose 33.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 22.3% in FY23 as against 32.2% in FY22.
• Depreciation charges increased by 30.4% and finance costs increased by 98.4% YoY, respectively.
• Other income grew by 10.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 44.4% in FY22 to 37.8% in FY23.

QUINT DIGITAL MEDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	560	745	33.1%
Other income	Rs m	56	61	10.2%
Total Revenues	Rs m	616	806	31.0%
Gross profit	Rs m	-180	-166	NA
Depreciation	Rs m	90	117	30.4%
Interest	Rs m	18	35	98.4%
Profit before tax	Rs m	-232	-257	NA
Tax	Rs m	17	25	47.0%
Profit after tax	Rs m	-249	-282	NA
Gross profit margin	%	-32.2	-22.3
Effective tax rate	%	-7.3	-9.6
Net profit margin	%	-44.4	-37.8

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QUINT DIGITAL MEDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 894 million as compared to Rs 612 million in FY22, thereby witnessing an increase of 46.1%.
• Long-term debt down at Rs 1 million as compared to Rs 1 million during FY22, a fall of 41.2%.
• Current assets rose 282% and stood at Rs 2 billion, while fixed assets rose 57% and stood at Rs 870 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 159%.

QUINT DIGITAL MEDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	559	2,017	260.8
Current Liabilities	Rs m	612	894	46.1
Long-term Debt	Rs m	1	1	-41.2
Total Liabilities	Rs m	1,092	2,827	158.9
Current assets	Rs m	510	1,948	281.7
Fixed Assets	Rs m	553	870	57.4
Total Assets	Rs m	1,092	2,827	158.9

QUINT DIGITAL MEDIA Cash Flow Statement Analysis

• QUINT DIGITAL MEDIA's cash flow from operating activities (CFO) during FY23 stood at Rs -215 million, an improvement of 18.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 7,790.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 829% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 167 million from the Rs -22 million net cash flows seen during FY22.

QUINT DIGITAL MEDIA 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	-181	-215	-
Cash Flow from Investing Activities	Rs m	-16	-1,242	-
Cash Flow from Financing Activities	Rs m	175	1,624	829.2%
Net Cash Flow	Rs m	-22	167	-

Current Valuations for QUINT DIGITAL MEDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.0, an improvement from the EPS of Rs -11.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 130.9, stands at -22.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at -83.2 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	25.5	15.9
TTM Earnings per share	Rs	-11.3	-6.0
Diluted earnings per share	Rs	-5.3	-6.0
Price to Cash Flow	x	-124.2	-83.2
TTM P/E ratio	x	-82.1	-22.5
Price / Book Value ratio	x	18.1	6.8
Market Cap	Rs m	10,094	13,700
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for QUINT DIGITAL MEDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 0.8x 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 -6.3x during FY23, from -12.1x 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 -14.0% during FY23, from -44.5% 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 -11.0% during FY23, from -38.2% 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 -8.7% during FY23, from -21.2% 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	0.8	2.2
Debtors’ Days	Days	77,973	93,714
Interest coverage	x	-12.1	-6.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-21.2	-8.7
Return on equity	%	-44.5	-14.0
Return on capital employed	%	-38.2	-11.0

To see how QUINT DIGITAL MEDIA has performed over the last 5 years, please visit here.

QUINT DIGITAL MEDIA Share Price Performance

Over the last one year, QUINT DIGITAL MEDIA share price has moved down from Rs 419.4 to Rs 130.9, registering a loss of Rs 288.5 or around 68.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,978.0 (up 2.2%). Over the last one year it has moved down from 16,247.8 to 12,978.0, a loss of 3,270 points (down 20.1%).

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

(To know more, check out historical annual results for QUINT DIGITAL MEDIA and quarterly results for QUINT DIGITAL MEDIA)