63 MOONS TECH 2022-23 Annual Report Analysis

Fri, 1 Sep

63 MOONS 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.

63 MOONS TECH Income Statement Analysis

• Operating income during the year rose 81.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 23.6% in FY23 as against 81.9% in FY22.
• Depreciation charges increased by 87.3% and finance costs increased by 33.6% YoY, respectively.
• Other income grew by 58.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 46.4% in FY22 to 7.5% in FY23.

63 MOONS TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,603	2,901	81.0%
Other income	Rs m	705	1,120	58.8%
Total Revenues	Rs m	2,308	4,021	74.2%
Gross profit	Rs m	-1,313	-684	NA
Depreciation	Rs m	125	234	87.3%
Interest	Rs m	5	6	33.6%
Profit before tax	Rs m	-737	195	NA
Tax	Rs m	6	414	6,465.4%
Profit after tax	Rs m	-744	-218	NA
Gross profit margin	%	-81.9	-23.6
Effective tax rate	%	-0.9	211.6
Net profit margin	%	-46.4	-7.5

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63 MOONS TECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 27.7%.
• Current assets rose 3% and stood at Rs 20 billion, while fixed assets rose 6% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 34 billion as against Rs 33 billion during FY22, thereby witnessing a growth of 4%.

63 MOONS TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	30,964	31,140	0.6
Current Liabilities	Rs m	2,780	3,550	27.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	32,840	34,183	4.1
Current assets	Rs m	19,498	20,089	3.0
Fixed Assets	Rs m	13,342	14,095	5.6
Total Assets	Rs m	32,840	34,183	4.1

63 MOONS TECH Cash Flow Statement Analysis

• 63 MOONS TECH's cash flow from operating activities (CFO) during FY23 stood at Rs 707 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 500 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 189 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 540 million net cash flows seen during FY22.

63 MOONS 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	-1,018	707	-
Cash Flow from Investing Activities	Rs m	750	500	-33.3%
Cash Flow from Financing Activities	Rs m	808	189	-76.6%
Net Cash Flow	Rs m	540	1,396	158.7%

Current Valuations for 63 MOONS TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.7, an improvement from the EPS of Rs -16.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 331.7, stands at 52.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 678.4 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	34.8	62.9
TTM Earnings per share	Rs	-16.1	-4.7
Diluted earnings per share	Rs	-16.1	-4.7
Price to Cash Flow	x	-20.0	678.4
TTM P/E ratio	x	-16.6	52.7
Price / Book Value ratio	x	0.3	0.3
Market Cap	Rs m	10,178	10,693
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for 63 MOONS TECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.7x during FY23, from 7.0x 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 31.9x during FY23, from -154.9x 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 -0.7% during FY23, from -2.4% 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 0.6% during FY23, from -2.4% 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 -0.6% during FY23, from -2.3% 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	7.0	5.7
Debtors’ Days	Days	920	555
Interest coverage	x	-154.9	31.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.3	-0.6
Return on equity	%	-2.4	-0.7
Return on capital employed	%	-2.4	0.6

To see how 63 MOONS TECH has performed over the last 5 years, please visit here.

63 MOONS TECH Share Price Performance

Over the last one year, 63 MOONS TECH share price has moved up from Rs 188.3 to Rs 331.7, registering a gain of Rs 143.4 or around 76.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 31,528.2 (up 0.2%). Over the last one year it has moved up from 28,430.4 to 31,528.2, a gain of 3,098 points (up 10.9%).

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for 63 MOONS TECH and quarterly results for 63 MOONS TECH)