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3I INFOTECH 2022-23 Annual Report Analysis
Sun, 24 Sep

3I INFOTECH 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.

3I INFOTECH Income Statement Analysis

  • Operating income during the year rose 7.7% 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 6.0% in FY23 as against 6.4% in FY22.
  • Depreciation charges increased by 58.7% and finance costs decreased by 9.8% YoY, respectively.
  • Other income grew by 480.5% YoY.
  • Net profit for the year declined by NA YoY.
  • Net profit margins during the year grew from 8.5% in FY22 to 0.2% in FY23.

3I INFOTECH Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 6,770 7,291 7.7%
Other income Rs m 138 799 480.5%
Total Revenues Rs m 6,908 8,091 17.1%
Gross profit Rs m -432 -435 NA
Depreciation Rs m 144 228 58.7%
Interest Rs m 103 93 -9.8%
Profit before tax Rs m -541 44 NA
Tax Rs m 34 30 -11.2%
Profit after tax Rs m -575 14 NA
Gross profit margin % -6.4 -6.0
Effective tax rate % -6.3 68.7
Net profit margin % -8.5 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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3I INFOTECH Balance Sheet Analysis

  • The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 97.3%.
  • Long-term debt down at Rs 2 million as compared to Rs 544 million during FY22, a fall of 99.7%.
  • Current assets fell 13% and stood at Rs 3 billion, while fixed assets rose 12% and stood at Rs 6 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 1%.

3I INFOTECH Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 6,848 6,349 -7.3
 
Current Liabilities Rs m 1,331 2,625 97.3
Long-term Debt Rs m 544 2 -99.7
Total Liabilities Rs m 9,581 9,699 1.2
 
Current assets Rs m 4,001 3,466 -13.4
Fixed Assets Rs m 5,559 6,233 12.1
Total Assets Rs m 9,581 9,699 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



3I INFOTECH Cash Flow Statement Analysis

  • 3I INFOTECH's cash flow from operating activities (CFO) during FY23 stood at Rs 801 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 2,583.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -412 million, an improvement of 92% on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -672 million from the Rs -5 billion net cash flows seen during FY22.

3I INFOTECH 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 -500 801 -
Cash Flow from Investing Activities Rs m -40 -1,060 -
Cash Flow from Financing Activities Rs m -4,939 -412 -
Net Cash Flow Rs m -5,479 -672 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for 3I INFOTECH

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -3.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 40.4, stands at -53.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 35.0 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 40.3 43.3
TTM Earnings per share Rs -3.4 0.1
Diluted earnings per share Rs -3.4 0.1
Price to Cash Flow x -20.1 35.0
TTM P/E ratio x -15.1 -53.6
Price / Book Value ratio x 1.5 1.3
Market Cap Rs m 10,590 8,460
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for 3I INFOTECH

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 3.0x 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 1.5x during FY23, from -4.3x 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 0.2% during FY23, from -8.4% 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 2.2% during FY23, from -5.9% 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 1.1% during FY23, from -4.9% 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 3.0 1.3
Debtors’ Days Days 5 6
Interest coverage x -4.3 1.5
Debt to equity ratio x 0.1 0.0
Return on assets % -4.9 1.1
Return on equity % -8.4 0.2
Return on capital employed % -5.9 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how 3I INFOTECH has performed over the last 5 years, please visit here.

3I INFOTECH Share Price Performance

Over the last one year, 3I INFOTECH share price has moved down from Rs 45.4 to Rs 40.4, registering a loss of Rs 5.0 or around 11.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,993.5 (down 0.1%). Over the last one year it has moved up from 27,135.2 to 32,993.5, a gain of 5,858 points (up 21.6%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

(To know more, check out historical annual results for 3I INFOTECH and quarterly results for 3I INFOTECH)

Annual Report FAQs

What is the current share price of 3I INFOTECH?

3I INFOTECH currently trades at Rs 40.0 per share. You can check out the latest share price performance of 3I INFOTECH here...

What was the revenue of 3I INFOTECH in FY23? How does it compare to earlier years?

The revenues of 3I INFOTECH stood at Rs 8,091 m in FY23, which was up 17.1% compared to Rs 6,908 m reported in FY22.

3I INFOTECH's revenue has fallen from Rs 11,428 m in FY19 to Rs 8,091 m in FY23.

Over the past 5 years, the revenue of 3I INFOTECH has grown at a CAGR of -8.3%.

What was the net profit of 3I INFOTECH in FY23? How does it compare to earlier years?

The net profit of 3I INFOTECH stood at Rs 14 m in FY23, which was NA compared to Rs -575 m reported in FY22.

This compares to a net profit of Rs 2,578 m in FY21 and a net profit of Rs 680 m in FY20.

Over the past 5 years, 3I INFOTECH net profit has grown at a CAGR of -62.3%.

What does the cash flow statement of 3I INFOTECH reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of 3I INFOTECH reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 801 m as compared to Rs -500 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -1,060 m as compared to Rs -40 m in FY22.
  • Cash flow from financial activity increased in FY23 and stood at Rs -412 m as compared to Rs -4,939 m in FY22.

Here's the cash flow statement of 3I INFOTECH for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations1,3701,686790-500801
From Investments56-598,029-40-1,060
From Financial Activity-903-1,744-2,958-4,939-412
Net Cashflow523-1175,862-5,479-672

What does the Key Ratio analysis of 3I INFOTECH reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of 3I INFOTECH reveals:

  • Operating profit margins witnessed a growth and down at 6.0% in FY23 as against 6.4% in FY22.
  • Net profit margins grew from 8.5% in FY22 to 0.2% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.1 in FY22.

Here's the ratio/financial analysis of 3I INFOTECH for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)12.95.358.7-6.4-6.0
Net Profit Margin (%)6.19.742.4-8.50.2
Debt to Equity Ratio (x)2.52.10.70.10.0

 

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