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INFIBEAM AVENUES 2022-23 Annual Report Analysis

Mon, 2 Oct

INFIBEAM AVENUES 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.

INFIBEAM AVENUES Income Statement Analysis

• Operating income during the year rose 51.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY23 as against 11.8% in FY22.
• Depreciation charges decreased by 1.7% and finance costs decreased by 6.2% YoY, respectively.
• Other income grew by 607.5% YoY.
• Net profit for the year grew by 62.9% YoY.
• Net profit margins during the year grew from 6.5% in FY22 to 6.9% in FY23.

INFIBEAM AVENUES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,939	19,623	51.7%
Other income	Rs m	100	707	607.5%
Total Revenues	Rs m	13,039	20,331	55.9%
Gross profit	Rs m	1,533	1,752	14.3%
Depreciation	Rs m	626	616	-1.7%
Interest	Rs m	23	22	-6.2%
Profit before tax	Rs m	984	1,822	85.3%
Tax	Rs m	147	459	212.4%
Profit after tax	Rs m	837	1,363	62.9%
Gross profit margin	%	11.8	8.9
Effective tax rate	%	15.0	25.2
Net profit margin	%	6.5	6.9

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INFIBEAM AVENUES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 0.2%.
• Current assets rose 17% and stood at Rs 13 billion, while fixed assets rose 2% and stood at Rs 28 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 41 billion as against Rs 39 billion during FY22, thereby witnessing a growth of 6%.

INFIBEAM AVENUES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	28,987	30,438	5.0
Current Liabilities	Rs m	7,819	7,835	0.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	38,543	41,040	6.5
Current assets	Rs m	10,701	12,543	17.2
Fixed Assets	Rs m	27,842	28,497	2.4
Total Assets	Rs m	38,543	41,040	6.5

INFIBEAM AVENUES Cash Flow Statement Analysis

• INFIBEAM AVENUES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -885 million, an improvement of 60.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 367 million, an improvement of 202% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 612 million from the Rs 314 million net cash flows seen during FY22.

INFIBEAM AVENUES 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	1,220	1,130	-7.4%
Cash Flow from Investing Activities	Rs m	-550	-885	-
Cash Flow from Financing Activities	Rs m	-358	367	-
Net Cash Flow	Rs m	314	612	95.0%

Current Valuations for INFIBEAM AVENUES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 17.7, stands at 33.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 22.5 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	4.8	7.3
TTM Earnings per share	Rs	0.3	0.5
Diluted earnings per share	Rs	0.3	0.5
Price to Cash Flow	x	35.5	22.5
TTM P/E ratio	x	68.6	33.5
Price / Book Value ratio	x	3.6	1.5
Market Cap	Rs m	103,640	44,585
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for INFIBEAM AVENUES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x 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 improved and stood at 85.7x during FY23, from 43.9x 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 improved and stood at 4.5% during FY23, from 2.9% 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 improved and stood at 6.1% during FY23, from 3.5% 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 improved and stood at 3.4% during FY23, from 2.2% 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	1.6
Debtors’ Days	Days	23	12
Interest coverage	x	43.9	85.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.2	3.4
Return on equity	%	2.9	4.5
Return on capital employed	%	3.5	6.1

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 14.7 to Rs 17.7, registering a gain of Rs 3.1 or around 21.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,065.3 (down 0.3%). Over the last one year it has moved up from 27,488.4 to 32,065.3, a gain of 4,577 points (up 16.7%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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