INFOBEANS TECHNOLOGY 2022-23 Annual Report Analysis

Tue, 11 Jul

INFOBEANS TECHNOLOGY 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.

INFOBEANS TECHNOLOGY Income Statement Analysis

• Operating income during the year rose 42.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.4% in FY23 as against 24.2% in FY22.
• Depreciation charges increased by 67.7% and finance costs increased by 69.4% YoY, respectively.
• Other income declined by 23.1% YoY.
• Net profit for the year declined by 34.6% YoY.
• Net profit margins during the year declined from 20.3% in FY22 to 9.3% in FY23.

INFOBEANS TECHNOLOGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,714	3,853	42.0%
Other income	Rs m	176	135	-23.1%
Total Revenues	Rs m	2,890	3,988	38.0%
Gross profit	Rs m	657	710	8.1%
Depreciation	Rs m	180	301	67.7%
Interest	Rs m	46	78	69.4%
Profit before tax	Rs m	607	466	-23.3%
Tax	Rs m	58	107	85.2%
Profit after tax	Rs m	550	360	-34.6%
Gross profit margin	%	24.2	18.4
Effective tax rate	%	9.5	22.8
Net profit margin	%	20.3	9.3

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INFOBEANS TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 653 million as compared to Rs 709 million in FY22, thereby witnessing an decrease of -7.9%.
• Current assets rose 41% and stood at Rs 2 billion, while fixed assets fell 17% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 3%.

INFOBEANS TECHNOLOGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,298	2,682	16.7
Current Liabilities	Rs m	709	653	-7.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,050	4,165	2.8
Current assets	Rs m	1,394	1,964	40.8
Fixed Assets	Rs m	2,655	2,201	-17.1
Total Assets	Rs m	4,050	4,165	2.8

INFOBEANS TECHNOLOGY Cash Flow Statement Analysis

• INFOBEANS TECHNOLOGY 's cash flow from operating activities (CFO) during FY23 stood at Rs 773 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -734 million, an improvement of 54.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -139 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -78 million from the Rs 184 million net cash flows seen during FY22.

INFOBEANS TECHNOLOGY 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	807	773	-4.2%
Cash Flow from Investing Activities	Rs m	-476	-734	-
Cash Flow from Financing Activities	Rs m	-151	-139	-
Net Cash Flow	Rs m	184	-78	-

Current Valuations for INFOBEANS TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.8, an decline from the EPS of Rs 22.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 501.2, stands at 33.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 17.9 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	112.3	158.9
TTM Earnings per share	Rs	22.7	14.8
Diluted earnings per share	Rs	22.6	14.8
Price to Cash Flow	x	0.0	17.9
TTM P/E ratio	x	0.0	33.9
Price / Book Value ratio	x	5.0	4.4
Market Cap	Rs m	11,397	11,859
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for INFOBEANS TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY23, from 2.0x 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 7.0x during FY23, from 14.2x 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 13.4% during FY23, from 23.9% 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 declined and down at 20.3% during FY23, from 28.4% 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 10.5% during FY23, from 14.7% 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	2.0	3.0
Debtors’ Days	Days	909	608
Interest coverage	x	14.2	7.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.7	10.5
Return on equity	%	23.9	13.4
Return on capital employed	%	28.4	20.3

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

INFOBEANS TECHNOLOGY Share Price Performance

Over the last one year, INFOBEANS TECHNOLOGY share price has moved up from Rs 0.0 to Rs 501.2, registering a gain of Rs 501.2 or around 0.0%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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