eTranzact Plc, an active player on the ICT sector of the Nigerian Stock Exchange has continued to attract the attention of investors in recent time, thanks to appreciable level of working capital, low debts to equity ratio, among others, according to the analysis of its half year (H1) financial result for period ended 30th June 2015.
The banking and payment services company listed August 7th 2009 recorded a revenue growth of 15.5 per cent to N2.02 billion during H1 2015 from N1.75 billion in the same period of 2014 when operating profit hit 130 per cent to N223.6 million from N96.92 million.
Moreover, while profit before tax grew 137 per cent to N264.6 million from N111.6 million, profit after tax rose 147 per cent to N165.6 million from N66.9 million in H1 2014.
Analysing working capital adequacy, it was revealed that it rose 22.4 per cent to N1.85 billion in 2015 from N1.51 billion in 2014, while current ratio stood at 2.05 from 1.89 in H1 2014, a confirmation of adequate liquidity.
With debts to equity ratio slipping to 0.53 from 0.56 achieved in H1 2014, for every naira of shareholders equity, eTranzact is utilizing 53 kobo of its liabilities. With this, the company had effectively kept debt at a level lower than owners’ investment.
Operating margin growth to 11.1 per cent from 5.5 per cent showed that the business was profitable as the company retained N11 as profit for each naira of sales made in H1 2015.
A major source of the profitability also came from net profit margin growth to 8.19 from 3.83 in H1 2014, while basic earnings per share increased to 0.78 kobo from 0.71 kobo.
The company has market capitalisation of N11.6 billion and outstanding shares of 4.2 billion with share last traded at N2.75, a 3 per cent or 8 kobo gain from previous trading session.
By Pita Ochai
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