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SAHANA SYSTEM 2024-25 Annual Report Analysis
Wed, 4 Mar
In this Report:
- SAHANA SYSTEM Income Statement Analysis
- SAHANA SYSTEM Balance Sheet Analysis
- SAHANA SYSTEM Cash Flow Statement Analysis
- Current Valuations for SAHANA SYSTEM
- Ratio Analysis for SAHANA SYSTEM
- Overview of Management Discussion and Analysis
- Key Performance Highlights
- New Business Ventures and Strategic Initiatives
- Future Outlook and Market Strategy
SAHANA SYSTEM has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.
SAHANA SYSTEM Income Statement Analysis
- Operating income during the year rose 142.5% on a year-on-year (YoY) basis.
- The company's operating profit increased by 141.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.6% in FY25 as against 33.7% in FY24.
- Depreciation charges increased by 370.0% and finance costs increased by 541.9% YoY, respectively.
- Other income grew by 636.2% YoY.
- Net profit for the year grew by 115.3% YoY.
- Net profit margins during the year declined from 26.4% in FY24 to 23.4% in FY25.
SAHANA SYSTEM Income Statement 2024-25
| No. of Mths Year Ending | 12 Mar-24* | 12 Mar-25* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 690 | 1,675 | 142.5% |
| Other income | Rs m | 2 | 18 | 636.2% |
| Total Revenues | Rs m | 693 | 1,692 | 144.2% |
| Gross profit | Rs m | 232 | 562 | 141.9% |
| Depreciation | Rs m | 3 | 13 | 370.0% |
| Interest | Rs m | 1 | 9 | 541.9% |
| Profit before tax | Rs m | 231 | 559 | 142.1% |
| Tax | Rs m | 49 | 167 | 242.6% |
| Profit after tax | Rs m | 182 | 392 | 115.3% |
| Gross profit margin | % | 33.7 | 33.6 | |
| Effective tax rate | % | 21.1 | 29.8 | |
| Net profit margin | % | 26.4 | 23.4 | |
Interim results exclude extraordinary / exceptional items
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SAHANA SYSTEM Balance Sheet Analysis
- The company's current liabilities during FY25 stood at Rs 625 million as compared to Rs 397 million in FY24, thereby witnessing an increase of 57.6%.
- Long-term debt stood at Rs 6 million as compared to Rs 0 million during FY24, a fall of 0.0%.
- Current assets rose 204% and stood at Rs 2 billion, while fixed assets rose 91% and stood at Rs 679 million in FY25.
- Overall, the total assets and liabilities for FY25 stood at Rs 3 billion as against Rs 960 million during FY24, thereby witnessing a growth of 162%.
SAHANA SYSTEM Balance Sheet as on March 2025
| No. of Mths Year Ending | 12 Mar-24* | 12 Mar-25* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 564 | 1,760 | 212.2 |
| Current Liabilities | Rs m | 397 | 625 | 57.6 |
| Long-term Debt | Rs m | 0 | 6 | 0.0 |
| Total Liabilities | Rs m | 960 | 2,516 | 162.0 |
| Current assets | Rs m | 605 | 1,837 | 203.9 |
| Fixed Assets | Rs m | 356 | 679 | 90.7 |
| Total Assets | Rs m | 960 | 2,516 | 162.0 |
Interim results exclude extraordinary / exceptional items
SAHANA SYSTEM Cash Flow Statement Analysis
- SAHANA SYSTEM's cash flow from operating activities (CFO) during FY25 stood at Rs -483 million on a YoY basis.
- Cash flow from investing activities (CFI) during FY25 stood at Rs -350 million, an improvement of 62.0% on a YoY basis.
- Cash flow from financial activities (CFF) during FY25 stood at Rs 791 million, an improvement of 498% on a YoY basis.
- Overall, net cash flows for the company during FY25 stood at Rs -43 million from the Rs 259 million net cash flows seen during FY24.
SAHANA SYSTEM Cash Flow Statement 2024-25
| Particulars | No. of months | 12 | 12 | % Change |
|---|---|---|---|---|
| Year Ending | Mar-24 | Mar-25 | ||
| Cash Flow from Operating Activities | Rs m | 343 | -483 | - |
| Cash Flow from Investing Activities | Rs m | -216 | -350 | - |
| Cash Flow from Financing Activities | Rs m | 132 | 791 | 498.4% |
| Net Cash Flow | Rs m | 259 | -43 | - |
Interim results exclude extraordinary / exceptional items
Current Valuations for SAHANA SYSTEM
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.3, an improvement from the EPS of Rs 22.8 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
- The company's price to cash flow (P/CF) ratio stood at 31.3 times its end-of-year operating cash flow earnings.
Per Share Data/Valuations
| No. of Mths Year Ending | 12 Mar-24* | 12 Mar-25* | |
|---|---|---|---|
| Sales per share (Unadj.) | Rs | 86.3 | 189.4 |
| TTM Earnings per share | Rs | 22.8 | 44.3 |
| Diluted earnings per share | Rs | 20.6 | 44.4 |
| Price to Cash Flow | x | 0.0 | 31.3 |
| TTM P/E ratio | x | 0.0 | 0.0 |
| Price / Book Value ratio | x | 9.0 | 7.2 |
| Market Cap | Rs m | 5,066 | 12,649 |
| Dividends per share (Unadj.) | Rs | 0.0 | 0.0 |
Interim results exclude extraordinary / exceptional items
Ratio Analysis for SAHANA SYSTEM
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio improved and stood at 2.9x during FY25, from 1.5x during FY24. 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 65.0x during FY25, from 170.7x during FY24. 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.
Return on Equity (ROE): The ROE for the company declined and down at 22.3% during FY25, from 32.3% during FY25. 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 32.1% during FY25, from 41.2% during FY24. 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 15.9% during FY25, from 19.1% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.
Key Ratio Analysis
| No. of Mths Year Ending | 12 Mar-24* | 12 Mar-25* | |
|---|---|---|---|
| Current ratio | x | 1.5 | 2.9 |
| Debtors’ Days | Days | 1,058 | 1,930 |
| Interest coverage | x | 170.7 | 65.0 |
| Debt to equity ratio | x | 0.0 | 0.0 |
| Return on assets | % | 19.1 | 15.9 |
| Return on equity | % | 32.3 | 22.3 |
| Return on capital employed | % | 41.2 | 32.1 |
Interim results exclude extraordinary / exceptional items
Overview of Management Discussion and Analysis
In the Management Discussion and Analysis (MD&A) section of the Annual Report for the period covering the recent fiscal activities leading into the 2024-25 outlook, the leadership of Sahana System Limited highlighted a transformative phase for the company. The management emphasized that the company has successfully transitioned from a specialized IT service provider to a diversified technology conglomerate. A central point of pride mentioned was the company's migration from the NSE SME platform to the NSE Main Board, which management views as a testament to their improved corporate governance, financial transparency, and scale of operations.
Key Performance Highlights
The management underscored several critical aspects of their recent financial and operational performance that have solidified the company's market position:
- Robust Revenue Trajectory: The company reported substantial year-on-year growth in total revenue. Management attributed this to a diversified client base and the successful execution of high-value digital transformation projects. They noted that the revenue from international operations has seen a marked increase, reducing dependency on a single geographic market.
- Profitability and Margins: Management highlighted the improvement in EBITDA margins, achieved through optimized resource utilization and a shift toward high-margin specialized services rather than generic IT maintenance.
- Global Footprint: A significant portion of the discussion focused on the company's strategic expansion in the United Arab Emirates (UAE). The management views the Middle East as a primary growth engine, citing the region's aggressive push for smart city infrastructure and digital governance.
- Operational Resilience: The company maintained a strong balance sheet with minimal debt, which management highlighted as a key factor in their ability to fund internal R&D and potential future acquisitions without external financial strain.
New Business Ventures and Strategic Initiatives
The MD&A section provides a detailed look at the new sectors and technologies Sahana System is venturing into to ensure long-term sustainability and growth:
- Electric Vehicle (EV) Technology: Management highlighted a strategic pivot into the EV ecosystem. The company is developing sophisticated EV Charging Management Software (CMS) and hardware integration solutions. They believe that as global infrastructure shifts toward green energy, their software-first approach to EV charging will be a major revenue contributor.
- Artificial Intelligence and Machine Learning: The company is heavily investing in Generative AI and Machine Learning (ML). Management noted that they are no longer just implementing third-party tools but are developing proprietary AI models to help clients in the Fintech and Healthcare sectors automate complex decision-making processes.
- Blockchain and Cybersecurity: With the rise of digital threats, management identified Cybersecurity as a new core business vertical. They are integrating Blockchain technology into their security offerings to provide decentralized and immutable data storage solutions for high-security enterprise clients.
- SaaS Product Development: Moving beyond the traditional service model, the management highlighted the development of in-house SaaS (Software as a Service) products. These products are designed to cater to the SME sector, offering scalable ERP and CRM solutions that provide the company with recurring, subscription-based revenue.
Future Outlook and Market Strategy
Looking ahead into 2024-25, the management expressed a bullish sentiment regarding the Digital India initiative and the global Industry 4.0 movement. Their strategy involves a "Cloud-First, AI-First" approach. Management intends to focus on Strategic Partnerships with global tech giants to co-create solutions, thereby expanding their reach into the European and North American markets. The discussion concluded with a commitment to maintaining a client-centric approach while aggressively pursuing innovation in the green energy and automation sectors.
To see how SAHANA SYSTEM has performed over the last 5 years, please visit here.
Annual Report FAQs
What is the current share price of SAHANA SYSTEM?
SAHANA SYSTEM currently trades at Rs 788.0 per share. You can check out the latest share price performance of SAHANA SYSTEM here...
What was the revenue of SAHANA SYSTEM in FY25? How does it compare to earlier years?
The revenues of SAHANA SYSTEM stood at Rs 1,692 m in FY25, which was up 144.2% compared to Rs 693 m reported in FY24.
SAHANA SYSTEM's revenue has grown from Rs 33 m in FY21 to Rs 1,692 m in FY25.
Over the past 5 years, the revenue of SAHANA SYSTEM has grown at a CAGR of 167.3%.
What was the net profit of SAHANA SYSTEM in FY25? How does it compare to earlier years?
The net profit of SAHANA SYSTEM stood at Rs 392 m in FY25, which was up 115.3% compared to Rs 182 m reported in FY24.
This compares to a net profit of Rs 62 m in FY23 and a net profit of Rs 14 m in FY22.
Over the past 5 years, SAHANA SYSTEM net profit has grown at a CAGR of 293.2%.
What does the cash flow statement of SAHANA SYSTEM reveal?
The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.
This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.
The cash flow statement of SAHANA SYSTEM reveals:
- Cash flow from operations decreased in FY25 and stood at Rs -483 m as compared to Rs 343 m in FY24.
- Cash flow from investments decreased in FY25 and stood at Rs -350 m as compared to Rs -216 m in FY24.
- Cash flow from financial activity increased in FY25 and stood at Rs 791 m as compared to Rs 132 m in FY24.
Here's the cash flow statement of SAHANA SYSTEM for the past 5 years.
| (Rs m) | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| From Operations | -1 | 3 | 9 | 343 | -483 |
| From Investments | 0 | -3 | 2 | -216 | -350 |
| From Financial Activity | 1 | 1 | -31 | 132 | 791 |
| Net Cashflow | 0 | 1 | -20 | 259 | -43 |
What does the Key Ratio analysis of SAHANA SYSTEM reveal?
Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.
The ratio/financial analysis of SAHANA SYSTEM reveals:
- Operating profit margins witnessed a fall and stood at 33.6% in FY25 as against 33.7% in FY24.
- Net profit margins declined from 26.4% in FY24 to 23.4% in FY25.
- Debt to Equity ratio for FY25 stood at 0.0 as compared to 0.0 in FY24.
Here's the ratio/financial analysis of SAHANA SYSTEM for the past 5 years.
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Operating Profit Margin (%) | 25.4 | 22.8 | 40.1 | 33.7 | 33.6 |
| Net Profit Margin (%) | 5.0 | 11.6 | 25.7 | 26.4 | 23.4 |
| Debt to Equity Ratio (x) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
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