IRB INFRA 2020-21 Annual Report Analysis

Wed, 31 Mar

IRB INFRA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

IRB INFRA Income Statement Analysis

• Operating income during the year fell 22.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.5% in FY21 as against 44.3% in FY20.
• Depreciation charges increased by 24.2% and finance costs increased by 7.9% YoY, respectively.
• Other income declined by 3.1% YoY.
• Net profit for the year declined by 61.6% YoY.
• Net profit margins during the year declined from 10.8% in FY20 to 5.3% in FY21.

IRB INFRA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	68,522	52,986	-22.7%
Other income	Rs m	1,950	1,889	-3.1%
Total Revenues	Rs m	70,472	54,875	-22.1%
Gross profit	Rs m	30,381	25,175	-17.1%
Depreciation	Rs m	4,683	5,817	24.2%
Interest	Rs m	15,736	16,973	7.9%
Profit before tax	Rs m	11,911	4,274	-64.1%
Tax	Rs m	4,544	1,445	-68.2%
Profit after tax	Rs m	7,367	2,829	-61.6%
Gross profit margin	%	44.3	47.5
Effective tax rate	%	38.1	33.8
Net profit margin	%	10.8	5.3

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IRB INFRA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 67 billion as compared to Rs 144 billion in FY20, thereby witnessing an decrease of -53.9%.
• Long-term debt stood at Rs 165 billion as compared to Rs 65 billion during FY20, a growth of 155.5%.
• Current assets rose 12% and stood at Rs 69 billion, while fixed assets rose 1% and stood at Rs 356 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 425 billion as against Rs 415 billion during FY20, thereby witnessing a growth of 3%.

IRB INFRA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	66,829	69,008	3.3
Current Liabilities	Rs m	144,337	66,528	-53.9
Long-term Debt	Rs m	64,581	165,034	155.5
Total Liabilities	Rs m	414,530	425,121	2.6
Current assets	Rs m	61,421	68,995	12.3
Fixed Assets	Rs m	353,109	356,126	0.9
Total Assets	Rs m	414,530	425,121	2.6

IRB INFRA Cash Flow Statement Analysis

• IRB INFRA's cash flow from operating activities (CFO) during FY21 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -82 billion, an improvement of 66.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 75 billion, an improvement of 442% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY20.

IRB INFRA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	37,092	8,668	-76.6%
Cash Flow from Investing Activities	Rs m	-49,053	-81,761	-
Cash Flow from Financing Activities	Rs m	13,878	75,199	441.9%
Net Cash Flow	Rs m	1,650	2,106	27.6%

Current Valuations for IRB INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an decline from the EPS of Rs 21.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.7, stands at 23.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	195.0	150.8
TTM Earnings per share	Rs	21.0	8.1
Diluted earnings per share	Rs	12.2	4.7
Price to Cash Flow	x	2.7	3.8
TTM P/E ratio	x	4.3	23.2
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	36,164	33,194
Dividends per share (Unadj.)	Rs	5.0	0.0

Ratio Analysis for IRB INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.4x during FY20. 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 1.3x during FY21, from 1.8x during FY20. 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 4.1% during FY21, from 11.0% during FY21. 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 9.1% during FY21, from 21.0% during FY20. 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 4.7% during FY21, from 5.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.4	1.0
Debtors’ Days	Days	23	23
Interest coverage	x	1.8	1.3
Debt to equity ratio	x	1.0	2.4
Return on assets	%	5.6	4.7
Return on equity	%	11.0	4.1
Return on capital employed	%	21.0	9.1

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

IRB INFRA Share Price Performance

Over the last one year, IRB INFRA share price has moved up from Rs 53.1 to Rs 108.7, registering a gain of Rs 55.6 or around 104.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of IRB INFRA