Fractal Analytics (FRACTAL) Q4 22/23 earnings summary

Executive summary

• FY23 standalone revenue rose to ₹9,476m from ₹6,388m; an ₹898m impairment charge drove a net loss of ₹560m versus ₹26m.

• Auditors issued an unmodified opinion; internal financial controls were adequate and operating effectively at March 31, 2023.

Financial highlights

• Revenue from operations was ₹9,476m; third-party services contributed ₹2,377m and related-party services ₹7,099m.

• Other income increased to ₹609m from ₹320m, including ₹148m dividend income, ₹306m net foreign-exchange gain and ₹157m net gain on financial instruments.

• Employee benefits expense increased to ₹7,912m from ₹5,178m, including ₹1,049m ESOP expense versus ₹102m.

• Loss before tax was ₹415m after ₹898m of exceptional impairment; net loss was ₹560m versus ₹26m, and total comprehensive loss was ₹540m.

Key financial ratios and metrics

• Basic and diluted EPS were both -₹18.47 versus -₹0.93; options were anti-dilutive because of the loss.

• Current ratio was 6.64 versus 6.22; trade receivables turnover was 1.93 versus 2.24, and trade payables turnover was 5.75 versus 5.46.

• Net profit ratio was -5.91% versus -0.40%; return on equity was -3.89% versus -0.26%, while return on investment improved to 4.68% from 1.83%.