SAGARSOFT (INDIA) 2022-23 Annual Report Analysis

Fri, 16 Jun

SAGARSOFT (INDIA) 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.

SAGARSOFT (INDIA) Income Statement Analysis

• Operating income during the year rose 39.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY23 as against 10.3% in FY22.
• Depreciation charges increased by 16.7% and finance costs increased by 319.2% YoY, respectively.
• Other income grew by 79.1% YoY.
• Net profit for the year declined by 4.2% YoY.
• Net profit margins during the year declined from 6.8% in FY22 to 4.6% in FY23.

SAGARSOFT (INDIA) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,178	1,642	39.4%
Other income	Rs m	14	24	79.1%
Total Revenues	Rs m	1,191	1,666	39.8%
Gross profit	Rs m	121	125	2.9%
Depreciation	Rs m	22	26	16.7%
Interest	Rs m	4	17	319.2%
Profit before tax	Rs m	109	106	-2.5%
Tax	Rs m	29	30	2.1%
Profit after tax	Rs m	80	76	-4.2%
Gross profit margin	%	10.3	7.6
Effective tax rate	%	26.8	28.0
Net profit margin	%	6.8	4.6

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

SAGARSOFT (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 245 million as compared to Rs 291 million in FY22, thereby witnessing an decrease of -15.9%.
• Current assets rose 6% and stood at Rs 742 million, while fixed assets rose 38% and stood at Rs 207 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 949 million as against Rs 848 million during FY22, thereby witnessing a growth of 12%.

SAGARSOFT (INDIA) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	550	617	12.2
Current Liabilities	Rs m	291	245	-15.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	848	949	11.9
Current assets	Rs m	698	742	6.3
Fixed Assets	Rs m	149	207	38.3
Total Assets	Rs m	848	949	11.9

SAGARSOFT (INDIA) Cash Flow Statement Analysis

• SAGARSOFT (INDIA)'s cash flow from operating activities (CFO) during FY23 stood at Rs 118 million, an improvement of 433.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -45 million, an improvement of 934.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -33 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 49 million from the Rs 135 million net cash flows seen during FY22.

SAGARSOFT (INDIA) 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	22	118	433.9%
Cash Flow from Investing Activities	Rs m	-4	-45	-
Cash Flow from Financing Activities	Rs m	19	-33	-
Net Cash Flow	Rs m	135	49	-63.6%

Current Valuations for SAGARSOFT (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an decline from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 144.6, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.6 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	184.3	256.9
TTM Earnings per share	Rs	12.5	11.9
Diluted earnings per share	Rs	12.4	11.9
Price to Cash Flow	x	10.4	10.6
TTM P/E ratio	x	13.3	12.1
Price / Book Value ratio	x	2.2	1.8
Market Cap	Rs m	1,199	1,087
Dividends per share (Unadj.)	Rs	3.0	2.0

Ratio Analysis for SAGARSOFT (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY23, from 2.4x 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 7.1x during FY23, from 27.1x 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 declined and down at 12.4% during FY23, from 14.5% 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 declined and down at 20.0% during FY23, from 20.5% 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 improved and stood at 9.9% during FY23, from 9.9% 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	2.4	3.0
Debtors’ Days	Days	1,203	733
Interest coverage	x	27.1	7.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.9	9.9
Return on equity	%	14.5	12.4
Return on capital employed	%	20.5	20.0

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

SAGARSOFT (INDIA) Share Price Performance

Over the last one year, SAGARSOFT (INDIA) share price has moved down from Rs 161.6 to Rs 144.6, registering a loss of Rs 17.0 or around 10.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,026.0 (down 0.5%). Over the last one year it has moved up from 27,543.0 to 29,026.0, a gain of 1,483 points (up 5.4%).

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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