IRB INFRA 2022-23 Annual Report Analysis

Fri, 31 Mar

IRB INFRA 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.

IRB INFRA Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 48.9% in FY23 as against 44.4% in FY22.
• Depreciation charges increased by 21.9% and finance costs decreased by 19.7% YoY, respectively.
• Other income declined by 45.3% YoY.
• Net profit for the year grew by 99.2% YoY.
• Net profit margins during the year grew from 6.2% in FY22 to 11.2% in FY23.

IRB INFRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	58,037	64,016	10.3%
Other income	Rs m	5,517	3,017	-45.3%
Total Revenues	Rs m	63,554	67,033	5.5%
Gross profit	Rs m	25,747	31,286	21.5%
Depreciation	Rs m	6,828	8,321	21.9%
Interest	Rs m	18,940	15,212	-19.7%
Profit before tax	Rs m	5,496	10,770	95.9%
Tax	Rs m	1,882	3,569	89.6%
Profit after tax	Rs m	3,614	7,200	99.2%
Gross profit margin	%	44.4	48.9
Effective tax rate	%	34.2	33.1
Net profit margin	%	6.2	11.2

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IRB INFRA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 45 billion as compared to Rs 35 billion in FY22, thereby witnessing an increase of 29.2%.
• Long-term debt down at Rs 133 billion as compared to Rs 148 billion during FY22, a fall of 9.9%.
• Current assets rose 25% and stood at Rs 72 billion, while fixed assets fell 4% and stood at Rs 357 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 429 billion as against Rs 431 billion during FY22, thereby witnessing a fall of 0%.

IRB INFRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	125,656	133,789	6.5
Current Liabilities	Rs m	35,176	45,446	29.2
Long-term Debt	Rs m	147,646	132,981	-9.9
Total Liabilities	Rs m	430,780	429,426	-0.3
Current assets	Rs m	57,677	72,052	24.9
Fixed Assets	Rs m	373,103	357,374	-4.2
Total Assets	Rs m	430,780	429,426	-0.3

IRB INFRA Cash Flow Statement Analysis

• IRB INFRA's cash flow from operating activities (CFO) during FY23 stood at Rs 18 billion, an improvement of 384.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs -6 billion net cash flows seen during FY22.

IRB INFRA 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	3,641	17,641	384.5%
Cash Flow from Investing Activities	Rs m	-15,534	-6,503	-
Cash Flow from Financing Activities	Rs m	5,886	-8,605	-
Net Cash Flow	Rs m	-6,008	2,533	-

Current Valuations for IRB INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an decline from the EPS of Rs 6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 25.1, stands at 18.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	96.1	10.6
TTM Earnings per share	Rs	6.0	1.2
Diluted earnings per share	Rs	0.6	1.2
Price to Cash Flow	x	14.6	10.3
TTM P/E ratio	x	25.9	18.3
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	135,168	159,774
Dividends per share (Unadj.)	Rs	0.0	0.2

Ratio Analysis for IRB INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.6x 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 improved and stood at 1.7x during FY23, from 1.3x 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 improved and stood at 5.4% during FY23, from 2.9% 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 improved and stood at 9.7% during FY23, from 8.9% 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 5.2% during FY23, from 5.2% 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	1.6	1.6
Debtors’ Days	Days	62	93
Interest coverage	x	1.3	1.7
Debt to equity ratio	x	1.2	1.0
Return on assets	%	5.2	5.2
Return on equity	%	2.9	5.4
Return on capital employed	%	8.9	9.7

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 down from Rs 25.2 to Rs 25.1, registering a loss of Rs 0.1 or around 0.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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