SASKEN TECHNOLOGIES 2022-23 Annual Report Analysis

Sat, 1 Jul

SASKEN TECHNOLOGIES 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.

SASKEN TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 3.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.5% in FY23 as against 29.7% in FY22.
• Depreciation charges increased by 3.9% and finance costs increased by 197.8% YoY, respectively.
• Other income declined by 15.8% YoY.
• Net profit for the year declined by 22.4% YoY.
• Net profit margins during the year declined from 29.6% in FY22 to 22.3% in FY23.

SASKEN TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,339	4,470	3.0%
Other income	Rs m	353	297	-15.8%
Total Revenues	Rs m	4,692	4,767	1.6%
Gross profit	Rs m	1,291	1,008	-21.9%
Depreciation	Rs m	65	68	3.9%
Interest	Rs m	0	1	197.8%
Profit before tax	Rs m	1,579	1,236	-21.7%
Tax	Rs m	296	242	-18.4%
Profit after tax	Rs m	1,282	995	-22.4%
Gross profit margin	%	29.7	22.5
Effective tax rate	%	18.8	19.5
Net profit margin	%	29.6	22.3

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SASKEN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 946 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -14.0%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 7%.

SASKEN TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,523	7,128	9.3
Current Liabilities	Rs m	1,100	946	-14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,627	8,148	6.8
Current assets	Rs m	1,797	2,133	18.7
Fixed Assets	Rs m	5,830	6,015	3.2
Total Assets	Rs m	7,627	8,148	6.8

SASKEN TECHNOLOGIES Cash Flow Statement Analysis

• SASKEN TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 715 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -271 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -371 million, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 75 million from the Rs -22 million net cash flows seen during FY22.

SASKEN TECHNOLOGIES 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	1,070	715	-33.2%
Cash Flow from Investing Activities	Rs m	-691	-271	-
Cash Flow from Financing Activities	Rs m	-392	-371	-
Net Cash Flow	Rs m	-22	75	-

Current Valuations for SASKEN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.1, an decline from the EPS of Rs 85.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 971.7, stands at 14.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	288.3	297.0
TTM Earnings per share	Rs	85.2	66.1
Diluted earnings per share	Rs	85.2	66.1
Price to Cash Flow	x	10.2	12.4
TTM P/E ratio	x	10.7	14.7
Price / Book Value ratio	x	2.7	1.9
Market Cap	Rs m	17,844	13,187
Dividends per share (Unadj.)	Rs	25.0	25.0

Ratio Analysis for SASKEN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.6x 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 923.6x during FY23, from 3,508.8x 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 14.0% during FY23, from 19.7% 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 17.4% during FY23, from 24.2% 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 declined and down at 12.2% during FY23, from 16.8% 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	1.6	2.3
Debtors’ Days	Days	687	586
Interest coverage	x	3,508.8	923.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.8	12.2
Return on equity	%	19.7	14.0
Return on capital employed	%	24.2	17.4

To see how SASKEN TECHNOLOGIES has performed over the last 5 years, please visit here.

SASKEN TECHNOLOGIES Share Price Performance

Over the last one year, SASKEN TECHNOLOGIES share price has moved up from Rs 759.3 to Rs 971.7, registering a gain of Rs 212.5 or around 28.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,876.5 (up 2.3%). Over the last one year it has moved up from 28,517.7 to 29,876.5, a gain of 1,359 points (up 4.8%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for SASKEN TECHNOLOGIES and quarterly results for SASKEN TECHNOLOGIES)