CYIENT 2022-23 Annual Report Analysis

Thu, 1 Jun

CYIENT 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.

CYIENT Income Statement Analysis

• Operating income during the year rose 32.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.9% in FY23 as against 18.0% in FY22.
• Depreciation charges increased by 33.5% and finance costs increased by 154.5% YoY, respectively.
• Other income declined by 26.0% YoY.
• Net profit for the year declined by 1.5% YoY.
• Net profit margins during the year declined from 11.5% in FY22 to 8.6% in FY23.

CYIENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	45,344	60,159	32.7%
Other income	Rs m	1,121	830	-26.0%
Total Revenues	Rs m	46,465	60,989	31.3%
Gross profit	Rs m	8,178	9,548	16.8%
Depreciation	Rs m	1,922	2,566	33.5%
Interest	Rs m	393	1,000	154.5%
Profit before tax	Rs m	6,984	6,812	-2.5%
Tax	Rs m	1,761	1,668	-5.3%
Profit after tax	Rs m	5,223	5,144	-1.5%
Gross profit margin	%	18.0	15.9
Effective tax rate	%	25.2	24.5
Net profit margin	%	11.5	8.6

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CYIENT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 20 billion as compared to Rs 13 billion in FY22, thereby witnessing an increase of 60.3%.
• Long-term debt stood at Rs 5 billion as compared to Rs 23 million during FY22, a growth of 21373.9%.
• Current assets rose 10% and stood at Rs 32 billion, while fixed assets rose 77% and stood at Rs 33 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 65 billion as against Rs 48 billion during FY22, thereby witnessing a growth of 36%.

CYIENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	30,934	34,179	10.5
Current Liabilities	Rs m	12,623	20,231	60.3
Long-term Debt	Rs m	23	4,939	21,373.9
Total Liabilities	Rs m	47,625	64,999	36.5
Current assets	Rs m	28,972	31,913	10.2
Fixed Assets	Rs m	18,653	33,086	77.4
Total Assets	Rs m	47,625	64,999	36.5

CYIENT Cash Flow Statement Analysis

• CYIENT's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -10 billion, an improvement of 170.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 billion from the Rs -3 billion net cash flows seen during FY22.

CYIENT 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	6,345	5,539	-12.7%
Cash Flow from Investing Activities	Rs m	-3,823	-10,327	-
Cash Flow from Financing Activities	Rs m	-5,445	-1,093	-
Net Cash Flow	Rs m	-2,871	-5,616	-

Current Valuations for CYIENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.5, an decline from the EPS of Rs 47.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,388.0, stands at 29.8 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 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	411.0	544.0
TTM Earnings per share	Rs	47.3	46.5
Diluted earnings per share	Rs	47.2	46.5
Price to Cash Flow	x	14.4	12.7
TTM P/E ratio	x	19.7	29.8
Price / Book Value ratio	x	3.5	2.9
Market Cap	Rs m	107,209	97,640
Dividends per share (Unadj.)	Rs	24.0	26.0

Ratio Analysis for CYIENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 2.3x 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 7.8x during FY23, from 18.8x 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 15.1% during FY23, from 16.9% 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 20.0% during FY23, from 23.8% 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 9.5% during FY23, from 11.8% 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	2.3	1.6
Debtors’ Days	Days	59	68
Interest coverage	x	18.8	7.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.8	9.5
Return on equity	%	16.9	15.1
Return on capital employed	%	23.8	20.0

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

CYIENT Share Price Performance

Over the last one year, CYIENT share price has moved up from Rs 798.8 to Rs 1,388.0, registering a gain of Rs 589.3 or around 73.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,613.8 (up 0.9%). Over the last one year it has moved down from 29,814.6 to 29,613.8, a loss of 201 points (down 0.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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