RATEGAIN TRAVEL TECH 2022-23 Annual Report Analysis

Fri, 25 Aug

RATEGAIN TRAVEL TECH 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.

RATEGAIN TRAVEL TECH Income Statement Analysis

• Operating income during the year rose 54.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 178.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in FY23 as against 8.5% in FY22.
• Depreciation charges increased by 19.1% and finance costs decreased by 48.6% YoY, respectively.
• Other income grew by 20.6% YoY.
• Net profit for the year grew by 712.5% YoY.
• Net profit margins during the year grew from 2.3% in FY22 to 12.1% in FY23.

RATEGAIN TRAVEL TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,666	5,651	54.2%
Other income	Rs m	165	199	20.6%
Total Revenues	Rs m	3,831	5,851	52.7%
Gross profit	Rs m	311	866	178.1%
Depreciation	Rs m	301	358	19.1%
Interest	Rs m	68	35	-48.6%
Profit before tax	Rs m	108	673	520.6%
Tax	Rs m	24	-11	NA
Profit after tax	Rs m	84	684	712.5%
Gross profit margin	%	8.5	15.3
Effective tax rate	%	22.3	-1.7
Net profit margin	%	2.3	12.1

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RATEGAIN TRAVEL TECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 48.4%.
• Current assets fell 4% and stood at Rs 5 billion, while fixed assets rose 71% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 20%.

RATEGAIN TRAVEL TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,994	6,979	16.4
Current Liabilities	Rs m	1,296	1,923	48.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,769	9,295	19.7
Current assets	Rs m	5,282	5,047	-4.5
Fixed Assets	Rs m	2,486	4,249	70.9
Total Assets	Rs m	7,769	9,295	19.7

RATEGAIN TRAVEL TECH Cash Flow Statement Analysis

• RATEGAIN TRAVEL TECH's cash flow from operating activities (CFO) during FY23 stood at Rs 519 million, an improvement of 208.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 126 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -17 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 658 million from the Rs -197 million net cash flows seen during FY22.

RATEGAIN TRAVEL TECH 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	168	519	208.9%
Cash Flow from Investing Activities	Rs m	-2,951	126	-
Cash Flow from Financing Activities	Rs m	2,399	-17	-
Net Cash Flow	Rs m	-197	658	-

Current Valuations for RATEGAIN TRAVEL TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an improvement from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 577.0, stands at 73.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.0 times, while the price to sales ratio stands at 11.1 times.
• The company's price to cash flow (P/CF) ratio stood at 34.0 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	34.2	52.2
TTM Earnings per share	Rs	0.8	6.3
Diluted earnings per share	Rs	0.8	6.3
Price to Cash Flow	x	94.1	34.0
TTM P/E ratio	x	430.3	73.7
Price / Book Value ratio	x	7.2	5.1
Market Cap	Rs m	42,938	35,417
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RATEGAIN TRAVEL TECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY23, from 4.1x 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 20.3x during FY23, from 2.6x 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 9.8% during FY23, from 1.4% 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 10.1% during FY23, from 2.9% 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 7.7% during FY23, from 2.0% 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	4.1	2.6
Debtors’ Days	Days	100	104
Interest coverage	x	2.6	20.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.0	7.7
Return on equity	%	1.4	9.8
Return on capital employed	%	2.9	10.1

To see how RATEGAIN TRAVEL TECH has performed over the last 5 years, please visit here.

RATEGAIN TRAVEL TECH Share Price Performance

Over the last one year, RATEGAIN TRAVEL TECH share price has moved up from Rs 308.6 to Rs 577.0, registering a gain of Rs 268.5 or around 87.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 31,264.9 (down 0.5%). Over the last one year it has moved up from 29,193.4 to 31,264.9, a gain of 2,072 points (up 7.1%).

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for RATEGAIN TRAVEL TECH and quarterly results for RATEGAIN TRAVEL TECH)