INFIBEAM AVENUES 2021-22 Annual Report Analysis

Thu, 8 Sep

INFIBEAM AVENUES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

INFIBEAM AVENUES Income Statement Analysis

• Operating income during the year rose 91.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.2% in FY22 as against 21.0% in FY21.
• Depreciation charges decreased by 16.5% and finance costs decreased by 43.4% YoY, respectively.
• Other income declined by 0.2% YoY.
• Net profit for the year grew by 22.8% YoY.
• Net profit margins during the year declined from 9.1% in FY21 to 5.9% in FY22.

INFIBEAM AVENUES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	6,760	12,939	91.4%
Other income	Rs m	100	100	-0.2%
Total Revenues	Rs m	6,861	13,039	90.1%
Gross profit	Rs m	1,422	1,453	2.2%
Depreciation	Rs m	751	626	-16.5%
Interest	Rs m	40	23	-43.4%
Profit before tax	Rs m	732	904	23.6%
Tax	Rs m	115	147	27.7%
Profit after tax	Rs m	616	757	22.8%
Gross profit margin	%	21.0	11.2
Effective tax rate	%	15.7	16.3
Net profit margin	%	9.1	5.9

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INFIBEAM AVENUES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 6 billion in FY21, thereby witnessing an increase of 28.5%.
• Current assets rose 21% and stood at Rs 11 billion, while fixed assets rose 4% and stood at Rs 28 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 39 billion as against Rs 35 billion during FY21, thereby witnessing a growth of 9%.

INFIBEAM AVENUES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	28,601	28,987	1.4
Current Liabilities	Rs m	6,086	7,819	28.5
Long-term Debt	Rs m	110	0	-100.0
Total Liabilities	Rs m	35,496	38,543	8.6
Current assets	Rs m	8,825	10,701	21.3
Fixed Assets	Rs m	26,671	27,842	4.4
Total Assets	Rs m	35,496	38,543	8.6

INFIBEAM AVENUES Cash Flow Statement Analysis

• INFIBEAM AVENUES's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -550 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -358 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 314 million from the Rs 911 million net cash flows seen during FY21.

INFIBEAM AVENUES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,549	1,220	-21.3%
Cash Flow from Investing Activities	Rs m	-640	-550	-
Cash Flow from Financing Activities	Rs m	-94	-358	-
Net Cash Flow	Rs m	911	314	-65.5%

Current Valuations for INFIBEAM AVENUES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.6, stands at 49.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 74.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	5.1	4.8
TTM Earnings per share	Rs	0.5	0.3
Diluted earnings per share	Rs	0.2	0.3
Price to Cash Flow	x	92.8	74.9
TTM P/E ratio	x	205.3	49.7
Price / Book Value ratio	x	3.3	3.6
Market Cap	Rs m	95,769	103,640
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 1.4x during FY22, from 1.5x during FY21. 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 40.4x during FY22, from 19.1x during FY21. 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 2.6% during FY22, from 2.2% during FY22. 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 3.2% during FY22, from 2.7% during FY21. 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 2.0% during FY22, from 1.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	39	23
Interest coverage	x	19.1	40.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.9	2.0
Return on equity	%	2.2	2.6
Return on capital employed	%	2.7	3.2

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 down from Rs 43.8 to Rs 16.6, registering a loss of Rs 27.2 or around 62.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,672.2 (up 0.9%). Over the last one year it has moved down from 34,235.1 to 28,672.2, a loss of 5,563 points (down 16.2%).

Overall, the S&P BSE SENSEX is up 2.4% 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