INDUS TOWERS 2022-23 Annual Report Analysis

Mon, 21 Aug

INDUS TOWERS 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.

INDUS TOWERS Income Statement Analysis

• Operating income during the year rose 2.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.3% in FY23 as against 53.3% in FY22.
• Depreciation charges decreased by 0.0% and finance costs increased by 4.2% YoY, respectively.
• Other income grew by 0.4% YoY.
• Net profit for the year declined by 68.0% YoY.
• Net profit margins during the year declined from 23.0% in FY22 to 7.2% in FY23.

INDUS TOWERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	277,172	283,818	2.4%
Other income	Rs m	5,755	5,778	0.4%
Total Revenues	Rs m	282,927	289,596	2.4%
Gross profit	Rs m	147,837	91,758	-37.9%
Depreciation	Rs m	53,252	53,239	0.0%
Interest	Rs m	16,033	16,704	4.2%
Profit before tax	Rs m	84,307	27,593	-67.3%
Tax	Rs m	20,576	7,193	-65.0%
Profit after tax	Rs m	63,731	20,400	-68.0%
Gross profit margin	%	53.3	32.3
Effective tax rate	%	24.4	26.1
Net profit margin	%	23.0	7.2

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INDUS TOWERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 82 billion as compared to Rs 88 billion in FY22, thereby witnessing an decrease of -7.5%.
• Long-term debt stood at Rs 24 billion as compared to Rs 24 billion during FY22, a growth of 2.5%.
• Current assets fell 29% and stood at Rs 87 billion, while fixed assets rose 3% and stood at Rs 366 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 454 billion as against Rs 480 billion during FY22, thereby witnessing a fall of 5%.

INDUS TOWERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	221,407	210,977	-4.7
Current Liabilities	Rs m	88,269	81,628	-7.5
Long-term Debt	Rs m	23,739	24,340	2.5
Total Liabilities	Rs m	479,676	453,506	-5.5
Current assets	Rs m	123,113	87,076	-29.3
Fixed Assets	Rs m	356,563	366,430	2.8
Total Assets	Rs m	479,676	453,506	-5.5

INDUS TOWERS Cash Flow Statement Analysis

• INDUS TOWERS's cash flow from operating activities (CFO) during FY23 stood at Rs 79 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -17 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -71 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -10 billion from the Rs 10 billion net cash flows seen during FY22.

INDUS TOWERS 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	91,212	79,048	-13.3%
Cash Flow from Investing Activities	Rs m	-21,737	-17,300	-
Cash Flow from Financing Activities	Rs m	-59,816	-71,326	-
Net Cash Flow	Rs m	9,659	-9,578	-

Current Valuations for INDUS TOWERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an decline from the EPS of Rs 23.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 158.4, stands at 14.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	102.8	105.3
TTM Earnings per share	Rs	23.6	7.6
Diluted earnings per share	Rs	23.6	7.6
Price to Cash Flow	x	5.1	6.7
TTM P/E ratio	x	9.4	14.7
Price / Book Value ratio	x	3.2	2.3
Market Cap	Rs m	709,914	493,106
Dividends per share (Unadj.)	Rs	11.0	0.0

Ratio Analysis for INDUS TOWERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.4x 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 6.3x 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 declined and down at 9.7% during FY23, from 28.8% 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 18.8% during FY23, from 40.9% 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 declined and down at 8.2% during FY23, from 16.6% 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	1.4	1.1
Debtors’ Days	Days	93	63
Interest coverage	x	6.3	2.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	16.6	8.2
Return on equity	%	28.8	9.7
Return on capital employed	%	40.9	18.8

To see how INDUS TOWERS has performed over the last 5 years, please visit here.

INDUS TOWERS Share Price Performance

Over the last one year, INDUS TOWERS share price has moved down from Rs 196.8 to Rs 158.4, registering a loss of Rs 38.4 or around 19.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,897.6 (up 0.6%). Over the last one year it has moved down from 13,903.0 to 13,897.6, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for INDUS TOWERS and quarterly results for INDUS TOWERS)