INFOSYS LTD 2017-18 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 LTD 2017-18 Annual Report Analysis
Wed, 8 Aug

INFOSYS LTD has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

INFOSYS LTD Income Statement Analysis

  • Operating income during the year rose 3.0% 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 27.0% in FY18 as against 27.2% in FY17.
  • Depreciation charges increased by 9.4% YoY.
  • Other income grew by 3.7% YoY.
  • Net profit for the year grew by 11.7% YoY.
  • Net profit margins during the year grew from 20.1% in FY17 to 21.7% in FY18.

INFOSYS LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 684,840 705,220 3.0%
Other income Rs m 30,800 31,930 3.7%
Total Revenues Rs m 715,640 737,150 3.0%
Gross profit Rs m 186,040 190,110 2.2%
Depreciation Rs m 17,030 18,630 9.4%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 199,810 203,410 1.8%
Tax Rs m 55,980 42,410 -24.2%
Profit after tax Rs m 143,530 160,290 11.7%
Gross profit margin % 27.2 27.0
Effective tax rate % 28.0 20.8
Net profit margin % 20.1 21.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



INFOSYS LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 141 billion as compared to Rs 140 billion in FY17, thereby witnessing an increase of 0.7%.
  • Current assets fell 7% and stood at Rs 500 billion, while fixed assets fell 9% and stood at Rs 142 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 799 billion as against Rs 834 billion during FY17, thereby witnessing a fall of 4%.

INFOSYS LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 689,820 649,230 -5.9
 
Current Liabilities Rs m 140,130 141,050 0.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 833,550 798,900 -4.2
 
Current assets Rs m 537,050 500,170 -6.9
Fixed Assets Rs m 156,150 141,800 -9.2
Total Assets Rs m 833,550 798,900 -4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



INFOSYS LTD Cash Flow Statement Analysis

  • INFOSYS LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 132 billion, an improvement of 14.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 45 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -205 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -28 billion from the Rs -101 billion net cash flows seen during FY17.

INFOSYS LTD Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 115,310 132,180 14.6%
Cash Flow from Investing Activities Rs m -145,420 44,520 -
Cash Flow from Financing Activities Rs m -69,390 -205,050 -
Net Cash Flow Rs m -100,720 -27,540 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for INFOSYS LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 73.4, an improvement from the EPS of Rs 62.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,365.0, stands at 19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 298.2 322.9
TTM Earnings per share Rs 62.5 73.4
Diluted earnings per share Rs 62.5 69.8
Price to Cash Flow x 19.5 17.5
TTM P/E ratio x 19.4 19.4
Price / Book Value ratio x 3.6 3.5
Market Cap Rs m 3,135,208 3,135,236
Dividends per share (Unadj.) Rs 25.8 43.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for INFOSYS LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.5x during FY18, from 3.8x during FY17. 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 improved and stood at 24.7% during FY18, from 20.8% during FY18. 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 31.2% during FY18, from 28.9% during FY17. 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 20.1% during FY18, from 17.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 3.8 3.5
Debtors’ Days Days 66 68
Interest coverage x 0.0 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 17.2 20.1
Return on equity % 20.8 24.7
Return on capital employed % 28.9 31.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

INFOSYS LTD Share Price Performance

Over the last one year, INFOSYS LTD share price has moved up from Rs 964.6 to Rs 1,365.0, registering a gain of Rs 400.4 or around 41.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,566.6 (down 0.1%). Over the last one year it has moved up from 10,222.5 to 14,566.6, a gain of 4,344 points (up 42.5%).

Overall, the S&P BSE SENSEX is up 17.4% over the year.

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

Equitymaster requests your view! Post a comment on "INFOSYS LTD 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

INFOSYS Announces Quarterly Results (4QFY20); Net Profit Up 6.3% (Quarterly Result Update)

Apr 21, 2020 | Updated on Apr 21, 2020

For the quarter ended March 2020, INFOSYS has posted a net profit of Rs 43 bn (up 6.3% YoY). Sales on the other hand came in at Rs 233 bn (up 8.0% YoY). Read on for a complete analysis of INFOSYS's quarterly results.

INFOSYS Announces Quarterly Results (3QFY20); Net Profit Up 23.7% (Quarterly Result Update)

Jan 13, 2020 | Updated on Jan 13, 2020

For the quarter ended December 2019, INFOSYS has posted a net profit of Rs 45 bn (up 23.7% YoY). Sales on the other hand came in at Rs 231 bn (up 7.9% YoY). Read on for a complete analysis of INFOSYS's quarterly results.

INFOSYS 2018-19 Annual Report Analysis (Annual Result Update)

May 21, 2019 | Updated on May 21, 2019

Here's an analysis of the annual report of INFOSYS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of INFOSYS. Also includes updates on the valuation of INFOSYS.

More Views on News

Most Popular

6 Charts Showing the State of Indian Financial Markets in 2020(Sector Info)

May 26, 2020

Six charts showing how Indian financial markets have performed in 2020 so far...

Why We Picked This Smallcap Stock for a Post Coronavirus World(Profit Hunter)

May 28, 2020

Covid-19 has made it a survival of the fittest race for many companies. The ones that can adapt will thrive in a post crisis world.

What the RBI's Rate Cut Means for Options Traders(Fast Profits Daily)

May 25, 2020

The RBI governor has cut the repo rate to 4%. What does this mean for options traders? Find out in this video.

Who Will Be Crowned the 'Multibagger Blue Chip' of the Decade?(Profit Hunter)

May 25, 2020

Will the mutlibagger blue chips of the past decade continue to rule the bourses?

More

India's #1 Trader
Reveals His Secrets

The Secret to Increasing Your Trading Profits Today
Get this Special Report, The Secret to Increasing Your Trading Profits Today, 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 - HP COMPARISON

COMPARE INFOSYS WITH

MARKET STATS