INFIBEAM AVENUES 2020-21 Annual Report Analysis

Wed, 31 Mar

INFIBEAM AVENUES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

INFIBEAM AVENUES Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.0% in FY21 as against 25.0% in FY20.
• Depreciation charges decreased by 14.1% and finance costs decreased by 13.8% YoY, respectively.
• Other income declined by 14.1% YoY.
• Net profit for the year grew by 8.0% YoY.
• Net profit margins during the year grew from 9.0% in FY20 to 9.1% in FY21.

INFIBEAM AVENUES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,327	6,760	6.8%
Other income	Rs m	117	100	-14.1%
Total Revenues	Rs m	6,444	6,861	6.5%
Gross profit	Rs m	1,582	1,418	-10.3%
Depreciation	Rs m	873	751	-14.1%
Interest	Rs m	42	37	-13.8%
Profit before tax	Rs m	783	732	-6.6%
Tax	Rs m	212	115	-45.7%
Profit after tax	Rs m	571	616	8.0%
Gross profit margin	%	25.0	21.0
Effective tax rate	%	27.1	15.7
Net profit margin	%	9.0	9.1

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INFIBEAM AVENUES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 122.5%.
• Long-term debt down at Rs 110 million as compared to Rs 176 million during FY20, a fall of 37.2%.
• Current assets rose 73% and stood at Rs 9 billion, while fixed assets rose 2% and stood at Rs 27 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 35 billion as against Rs 31 billion during FY20, thereby witnessing a growth of 13%.

INFIBEAM AVENUES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	27,826	28,601	2.8
Current Liabilities	Rs m	2,736	6,086	122.5
Long-term Debt	Rs m	176	110	-37.2
Total Liabilities	Rs m	31,296	35,496	13.4
Current assets	Rs m	5,098	8,825	73.1
Fixed Assets	Rs m	26,198	26,671	1.8
Total Assets	Rs m	31,296	35,496	13.4

INFIBEAM AVENUES Cash Flow Statement Analysis

• INFIBEAM AVENUES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 591.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -640 million, an improvement of 74.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -94 million, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 911 million from the Rs -454 million net cash flows seen during FY20.

INFIBEAM AVENUES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	224	1,549	591.9%
Cash Flow from Investing Activities	Rs m	-367	-640	-
Cash Flow from Financing Activities	Rs m	-261	-94	-
Net Cash Flow	Rs m	-454	911	-

Current Valuations for INFIBEAM AVENUES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 47.4, stands at 205.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 70.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	9.5	5.1
TTM Earnings per share	Rs	0.9	0.5
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	63.0	70.1
TTM P/E ratio	x	159.5	205.2
Price / Book Value ratio	x	1.0	3.3
Market Cap	Rs m	29,181	95,769
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for INFIBEAM AVENUES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY21, from 1.9x during FY20. 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 21.0x during FY21, from 19.5x during FY20. 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 2.2% during FY21, from 2.1% during FY21. 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 2.7% during FY21, from 2.9% during FY20. 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 1.8% during FY21, from 2.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.9	1.5
Debtors’ Days	Days	31	39
Interest coverage	x	19.5	21.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.0	1.8
Return on equity	%	2.1	2.2
Return on capital employed	%	2.9	2.7

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

INFIBEAM AVENUES Share Price Performance

Over the last one year, INFIBEAM AVENUES share price has moved up from Rs 34.0 to Rs 47.4, registering a gain of Rs 13.4 or around 39.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of INFIBEAM AVENUES