3I INFOTECH LTD. 2017-18 Annual Report Analysis

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3I INFOTECH LTD. 2017-18 Annual Report Analysis
Tue, 19 Mar

3I INFOTECH LTD. has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

3I INFOTECH LTD. Income Statement Analysis

  • Operating income during the year fell 1.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY18 as against 15.6% in FY17.
  • Depreciation charges decreased by 33.8% and finance costs decreased by 6.8% YoY, respectively.
  • Other income declined by 63.1% YoY.
  • Net profit for the year declined by 24.4% YoY.
  • Net profit margins during the year declined from 8.9% in FY17 to 7.0% in FY18.

3I INFOTECH LTD. Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 10,038 9,912 -1.3%
Other income Rs m 521 192 -63.1%
Total Revenues Rs m 10,559 10,104 -4.3%
Gross profit Rs m 1,569 1,558 -0.7%
Depreciation Rs m 135 89 -33.8%
Interest Rs m 930 867 -6.8%
Profit before tax Rs m 1,026 795 -22.5%
Tax Rs m 85 84 -1.6%
Profit after tax Rs m 941 711 -24.4%
Gross profit margin % 15.6 15.7
Effective tax rate % 8.3 10.5
Net profit margin % 8.9 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



3I INFOTECH LTD. Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an decrease of -2.7%.
  • Long-term debt down at Rs 8 billion as compared to Rs 9 billion during FY17, a fall of 8.7%.
  • Current assets fell 2% and stood at Rs 4 billion, while fixed assets fell 0% and stood at Rs 8 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 14 billion as against Rs 14 billion during FY17, thereby witnessing a fall of 1%.

3I INFOTECH LTD. Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 1,775 2,518 41.9
 
Current Liabilities Rs m 2,816 2,740 -2.7
Long-term Debt Rs m 9,029 8,247 -8.7
Total Liabilities Rs m 13,828 13,743 -0.6
 
Current assets Rs m 4,172 4,070 -2.4
Fixed Assets Rs m 8,064 8,030 -0.4
Total Assets Rs m 13,828 13,743 -0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



3I INFOTECH LTD. Cash Flow Statement Analysis

  • 3I INFOTECH LTD.'s cash flow from operating activities (CFO) during FY18 stood at Rs 927 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -25 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -701 million from the Rs 708 million net cash flows seen during FY17.

3I INFOTECH LTD. Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 1,294 927 -28.3%
Cash Flow from Investing Activities Rs m 156 -25 -
Cash Flow from Financing Activities Rs m -742 -1,604 -
Net Cash Flow Rs m 708 -701 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for 3I INFOTECH LTD.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3.8, stands at 5.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 8.2 6.1
TTM Earnings per share Rs 0.8 0.4
Diluted earnings per share Rs 1.0 0.8
Price to Cash Flow x 4.4 4.3
TTM P/E ratio x 7.7 5.7
Price / Book Value ratio x 3.5 4.1
Market Cap Rs m 4,687 3,443
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for 3I INFOTECH LTD.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.5x during FY17. 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 1.9x during FY18, from 2.1x during FY17. 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 28.2% during FY18, from 53.0% during FY18. 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 15.4% during FY18, from 18.1% during FY17. 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 11.5% during FY18, from 13.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.5 1.5
Debtors’ Days Days 74 78
Interest coverage x 2.1 1.9
Debt to equity ratio x 5.1 3.3
Return on assets % 13.5 11.5
Return on equity % 53.0 28.2
Return on capital employed % 18.1 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

3I INFOTECH LTD. Share Price Performance

Over the last one year, 3I INFOTECH LTD. share price has moved up from Rs 4.6 to Rs 3.8, registering a loss of Rs 0.8 or around 16.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,977.6 (down 0.0%). Over the last one year it has moved up from 12,074.2 to 14,977.6, a gain of 2,903 points (up 24.0%).

Overall, the S&P BSE SENSEX is up 15.9% over the year.

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

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For the quarter ended September 2019, 3I INFOTECH LTD. has posted a net profit of Rs 146 m (up 64.8% YoY). Sales on the other hand came in at Rs 3 bn (up 8.2% YoY). Read on for a complete analysis of 3I INFOTECH LTD.'s quarterly results.

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