INFOSYS 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

INFOSYS 2018-19 Annual Report Analysis
Tue, 21 May

INFOSYS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

INFOSYS Income Statement Analysis

  • Operating income during the year rose 17.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.4% in FY19 as against 26.8% in FY18.
  • Depreciation charges increased by 7.9% increased by 0.0% YoY, respectively.
  • Other income declined by 13.0% YoY.
  • Net profit for the year declined by 3.9% YoY.
  • Net profit margins during the year declined from 21.7% in FY18 to 18.0% in FY19.

INFOSYS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 705,220 826,750 17.2%
Other income Rs m 33,110 28,820 -13.0%
Total Revenues Rs m 738,330 855,570 15.9%
Gross profit Rs m 188,930 201,700 6.8%
Depreciation Rs m 18,630 20,110 7.9%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 203,410 210,410 3.4%
Tax Rs m 42,410 56,310 32.8%
Profit after tax Rs m 160,290 154,100 -3.9%
Gross profit margin % 26.8 24.4
Effective tax rate % 20.8 26.8
Net profit margin % 21.7 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



INFOSYS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 186 billion as compared to Rs 141 billion in FY18, thereby witnessing an increase of 32.1%.
  • Current assets rose 6% and stood at Rs 529 billion, while fixed assets rose 21% and stood at Rs 171 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 847 billion as against Rs 799 billion during FY18, thereby witnessing a growth of 6%.

INFOSYS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 649,230 649,480 0.0
 
Current Liabilities Rs m 141,050 186,380 32.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 798,900 847,380 6.1
 
Current assets Rs m 500,170 528,780 5.7
Fixed Assets Rs m 141,800 170,980 20.6
Total Assets Rs m 798,900 847,380 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



INFOSYS Cash Flow Statement Analysis

  • INFOSYS's cash flow from operating activities (CFO) during FY19 stood at Rs 148 billion, an improvement of 12.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -145 billion, an improvement of 29% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -3 billion from the Rs -28 billion net cash flows seen during FY18.

INFOSYS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 132,180 148,410 12.3%
Cash Flow from Investing Activities Rs m 44,520 -5,750 -
Cash Flow from Financing Activities Rs m -205,050 -145,120 -
Net Cash Flow Rs m -27,540 -3,030 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for INFOSYS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.5, an decline from the EPS of Rs 73.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 716.0, stands at 20.3 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 3.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 324.5 190.7
TTM Earnings per share Rs 73.8 35.5
Diluted earnings per share Rs 36.7 35.3
Price to Cash Flow x 8.7 18.0
TTM P/E ratio x 10.1 20.3
Price / Book Value ratio x 3.5 4.4
Market Cap Rs m 1,556,090 3,127,670
Dividends per share (Unadj.) Rs 43.5 21.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for INFOSYS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY19, from 3.5x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 23.7% during FY19, from 24.7% during FY19. 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 32.4% during FY19, from 31.2% during FY18. 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 18.2% during FY19, from 20.1% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 3.5 2.8
Debtors’ Days Days 68 65
Interest coverage x 0.0 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 20.1 18.2
Return on equity % 24.7 23.7
Return on capital employed % 31.2 32.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

INFOSYS Share Price Performance

Over the last one year, INFOSYS share price has moved up from Rs 591.3 to Rs 716.0, registering a gain of Rs 124.7 or around 21.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,445.8 (down 0.5%). Over the last one year it has moved up from 13,223.1 to 15,445.8, a gain of 2,223 points (up 16.8%).

Overall, the S&P BSE SENSEX is up 14.1% over the year.

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

Equitymaster requests your view! Post a comment on "INFOSYS 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

INFOSYS Announces Quarterly Results (2QFY21); Net Profit Up 20.3% (Quarterly Result Update)

Oct 15, 2020 | Updated on Oct 15, 2020

For the quarter ended September 2020, INFOSYS has posted a net profit of Rs 49 bn (up 20.3% YoY). Sales on the other hand came in at Rs 246 bn (up 8.6% YoY). Read on for a complete analysis of INFOSYS's quarterly results.

INFOSYS 2019-20 Annual Report Analysis (Annual Result Update)

Aug 5, 2020 | Updated on Aug 5, 2020

Here's an analysis of the annual report of INFOSYS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of INFOSYS. Also includes updates on the valuation of INFOSYS.

INFOSYS Announces Quarterly Results (1QFY21); Net Profit Up 12.4% (Quarterly Result Update)

Jul 16, 2020 | Updated on Jul 16, 2020

For the quarter ended June 2020, INFOSYS has posted a net profit of Rs 43 bn (up 12.4% YoY). Sales on the other hand came in at Rs 237 bn (up 8.5% YoY). Read on for a complete analysis of INFOSYS's quarterly results.

More Views on News

Most Popular

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

It's Time to Book Profits(Fast Profits Daily)

Nov 27, 2020

In my first video on Equitymaster, I want to introduce you my proprietary greed and fear index. It's telling us to book some profits in the market.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

Create Wealth for Yourself in India's Drone Revolution(Profit Hunter)

Nov 27, 2020

The Chinese drone market is 14 times that of India's. Billions may flow into Indian drone companies too. Don't miss out on this wealth creating opportunity.

The Price of Dying, the Cost of Living(The Honest Truth)

Nov 20, 2020

Ajit Dayal presents a cost benefit analysis of the various types of response to covid around the world.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK INFOSYS

  • Track your investment in INFOSYS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

INFOSYS - INFO EDGE COMPARISON

COMPARE INFOSYS WITH

MARKET STATS