SYSTAMATIX C 2022-23 Annual Report Analysis

Fri, 31 Mar

SYSTAMATIX C 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.

SYSTAMATIX C Income Statement Analysis

• Operating income during the year fell 18.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 86.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.8% in FY23 as against 28.8% in FY22.
• Depreciation charges decreased by 8.2% and finance costs decreased by 4.6% YoY, respectively.
• Other income grew by 246.8% YoY.
• Net profit for the year declined by 71.0% YoY.
• Net profit margins during the year declined from 19.6% in FY22 to 7.0% in FY23.

SYSTAMATIX C Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	893	725	-18.8%
Other income	Rs m	18	63	246.8%
Total Revenues	Rs m	911	788	-13.6%
Gross profit	Rs m	257	34	-86.6%
Depreciation	Rs m	7	6	-8.2%
Interest	Rs m	35	33	-4.6%
Profit before tax	Rs m	234	58	-75.3%
Tax	Rs m	59	7	-88.4%
Profit after tax	Rs m	175	51	-71.0%
Gross profit margin	%	28.8	4.8
Effective tax rate	%	25.1	11.8
Net profit margin	%	19.6	7.0

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SYSTAMATIX C Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 740 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -36.0%.
• Long-term debt down at Rs 82 million as compared to Rs 153 million during FY22, a fall of 46.4%.
• Current assets fell 24% and stood at Rs 1 billion, while fixed assets rose 5% and stood at Rs 349 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 20%.

SYSTAMATIX C Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	950	991	4.3
Current Liabilities	Rs m	1,156	740	-36.0
Long-term Debt	Rs m	153	82	-46.4
Total Liabilities	Rs m	2,264	1,810	-20.0
Current assets	Rs m	1,931	1,461	-24.4
Fixed Assets	Rs m	332	349	5.0
Total Assets	Rs m	2,264	1,810	-20.0

SYSTAMATIX C Cash Flow Statement Analysis

• SYSTAMATIX C's cash flow from operating activities (CFO) during FY23 stood at Rs -122 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -140 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -253 million from the Rs 266 million net cash flows seen during FY22.

SYSTAMATIX C 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	506	-122	-
Cash Flow from Investing Activities	Rs m	-151	9	-
Cash Flow from Financing Activities	Rs m	-89	-140	-
Net Cash Flow	Rs m	266	-253	-

Current Valuations for SYSTAMATIX C

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an decline from the EPS of Rs 13.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 216.9, stands at 55.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 88.1 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	68.8	55.9
TTM Earnings per share	Rs	13.5	3.9
Diluted earnings per share	Rs	13.5	3.9
Price to Cash Flow	x	29.2	88.1
TTM P/E ratio	x	30.3	55.4
Price / Book Value ratio	x	4.2	5.1
Market Cap	Rs m	3,951	5,015
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for SYSTAMATIX C

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.7x 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 2.7x during FY23, from 7.7x 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 5.1% during FY23, from 18.4% 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 declined and down at 8.5% during FY23, from 24.3% 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 4.6% during FY23, from 9.3% 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	1.7	2.0
Debtors’ Days	Days	1,659	479
Interest coverage	x	7.7	2.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	9.3	4.6
Return on equity	%	18.4	5.1
Return on capital employed	%	24.3	8.5

To see how SYSTAMATIX C has performed over the last 5 years, please visit here.

SYSTAMATIX C Share Price Performance

Over the last one year, SYSTAMATIX C share price has moved down from Rs 408.8 to Rs 216.9, registering a loss of Rs 191.9 or around 46.9%.

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

(To know more, check out historical annual results for SYSTAMATIX C and quarterly results for SYSTAMATIX C)