ICRA 2022-23 Annual Report Analysis

Wed, 12 Jul

ICRA 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.

ICRA Income Statement Analysis

• Operating income during the year fell 35.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY23 as against 35.2% in FY22.
• Depreciation charges decreased by 10.0% and finance costs decreased by 14.0% YoY, respectively.
• Other income grew by 60.4% YoY.
• Net profit for the year declined by 15.5% YoY.
• Net profit margins during the year grew from 33.1% in FY22 to 43.1% in FY23.

ICRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,428	2,225	-35.1%
Other income	Rs m	409	656	60.4%
Total Revenues	Rs m	3,837	2,881	-24.9%
Gross profit	Rs m	1,206	599	-50.3%
Depreciation	Rs m	78	70	-10.0%
Interest	Rs m	16	13	-14.0%
Profit before tax	Rs m	1,521	1,171	-23.0%
Tax	Rs m	386	212	-45.0%
Profit after tax	Rs m	1,135	959	-15.5%
Gross profit margin	%	35.2	26.9
Effective tax rate	%	25.4	18.1
Net profit margin	%	33.1	43.1

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ICRA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 5.4%.
• Current assets fell 14% and stood at Rs 4 billion, while fixed assets fell 2% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 10 billion during FY22, thereby witnessing a fall of 8%.

ICRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,436	7,366	-12.7
Current Liabilities	Rs m	1,155	1,218	5.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,738	9,002	-7.6
Current assets	Rs m	4,359	3,736	-14.3
Fixed Assets	Rs m	5,379	5,266	-2.1
Total Assets	Rs m	9,738	9,002	-7.6

ICRA Cash Flow Statement Analysis

• ICRA's cash flow from operating activities (CFO) during FY23 stood at Rs 525 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -235 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -311 million, an improvement of 3% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -21 million from the Rs -65 million net cash flows seen during FY22.

ICRA 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	974	525	-46.0%
Cash Flow from Investing Activities	Rs m	-719	-235	-
Cash Flow from Financing Activities	Rs m	-320	-311	-
Net Cash Flow	Rs m	-65	-21	-

Current Valuations for ICRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 99.4, an decline from the EPS of Rs 117.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,443.0, stands at 38.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 23.6 times.
• The company's price to cash flow (P/CF) ratio stood at 42.7 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	355.2	230.6
TTM Earnings per share	Rs	117.6	99.4
Diluted earnings per share	Rs	117.6	99.4
Price to Cash Flow	x	33.9	42.7
TTM P/E ratio	x	36.2	38.4
Price / Book Value ratio	x	4.3	6.0
Market Cap	Rs m	35,881	44,006
Dividends per share (Unadj.)	Rs	28.0	130.0

Ratio Analysis for ICRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY23, from 3.8x 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 88.3x during FY23, from 98.4x 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 13.0% during FY23, from 13.5% 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 16.1% during FY23, from 18.2% 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 10.8% during FY23, from 11.8% 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	3.8	3.1
Debtors’ Days	Days	282	210
Interest coverage	x	98.4	88.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	10.8
Return on equity	%	13.5	13.0
Return on capital employed	%	18.2	16.1

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

ICRA Share Price Performance

Over the last one year, ICRA share price has moved up from Rs 3,784.2 to Rs 5,443.0, registering a gain of Rs 1,658.8 or around 43.8%.

Overall, the S&P BSE SENSEX is up 20.7% over the year.

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