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IRCON INTERNATIONAL 2021-22 Annual Report Analysis
Fri, 2 Sep

IRCON INTERNATIONAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

IRCON INTERNATIONAL Income Statement Analysis

  • Operating income during the year rose 37.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.2% in FY22 as against 9.0% in FY21.
  • Depreciation charges increased by 3.3% and finance costs decreased by 6.1% YoY, respectively.
  • Other income grew by 4.3% YoY.
  • Net profit for the year grew by 48.2% YoY.
  • Net profit margins during the year grew from 6.7% in FY21 to 7.2% in FY22.

IRCON INTERNATIONAL Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 53,498 73,797 37.9%
Other income Rs m 4,238 4,420 4.3%
Total Revenues Rs m 57,737 78,216 35.5%
Gross profit Rs m 4,793 5,311 10.8%
Depreciation Rs m 921 952 3.3%
Interest Rs m 2,653 2,492 -6.1%
Profit before tax Rs m 5,457 6,287 15.2%
Tax Rs m 1,865 964 -48.3%
Profit after tax Rs m 3,592 5,323 48.2%
Gross profit margin % 9.0 7.2
Effective tax rate % 34.2 15.3
Net profit margin % 6.7 7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

IRCON INTERNATIONAL Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 77 billion as compared to Rs 58 billion in FY21, thereby witnessing an increase of 33.6%.
  • Long-term debt stood at Rs 13 billion as compared to Rs 3 billion during FY21, a growth of 318.0%.
  • Current assets rose 37% and stood at Rs 103 billion, while fixed assets rose 12% and stood at Rs 41 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 144 billion as against Rs 112 billion during FY21, thereby witnessing a growth of 29%.

IRCON INTERNATIONAL Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 44,031 46,656 6.0
 
Current Liabilities Rs m 57,831 77,246 33.6
Long-term Debt Rs m 3,121 13,044 318.0
Total Liabilities Rs m 111,835 143,738 28.5
 
Current assets Rs m 74,980 102,528 36.7
Fixed Assets Rs m 36,855 41,210 11.8
Total Assets Rs m 111,835 143,738 28.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



IRCON INTERNATIONAL Cash Flow Statement Analysis

  • IRCON INTERNATIONAL's cash flow from operating activities (CFO) during FY22 stood at Rs 14 billion, an improvement of 171.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -12 billion, an improvement of 57.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 7 billion, an improvement of 303% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 8 billion from the Rs -987 million net cash flows seen during FY21.

IRCON INTERNATIONAL Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 5,181 14,054 171.2%
Cash Flow from Investing Activities Rs m -7,774 -12,272 -
Cash Flow from Financing Activities Rs m 1,686 6,794 303.1%
Net Cash Flow Rs m -987 8,438 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for IRCON INTERNATIONAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.7, an decline from the EPS of Rs 7.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 43.0, stands at 6.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 113.8 78.5
TTM Earnings per share Rs 7.6 5.7
Diluted earnings per share Rs 3.8 5.7
Price to Cash Flow x 18.4 10.6
TTM P/E ratio x 23.1 6.9
Price / Book Value ratio x 2.5 1.4
Market Cap Rs m 110,757 66,306
Dividends per share (Unadj.) Rs 3.0 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for IRCON INTERNATIONAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x during FY21. 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 3.5x during FY22, from 3.1x during FY21. 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 11.4% during FY22, from 8.2% during FY22. 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 14.7% during FY22, from 17.2% during FY21. 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 5.4% during FY22, from 5.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.3 1.3
Debtors’ Days Days 4 3
Interest coverage x 3.1 3.5
Debt to equity ratio x 0.1 0.3
Return on assets % 5.6 5.4
Return on equity % 8.2 11.4
Return on capital employed % 17.2 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

IRCON INTERNATIONAL Share Price Performance

Over the last one year, IRCON INTERNATIONAL share price has moved down from Rs 43.0 to Rs 43.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 32,858.8 (up 1.3%). Over the last one year it has moved up from 25,376.4 to 32,858.8, a gain of 7,482 points (up 29.5%).

Overall, the S&P BSE SENSEX is up 3.4% over the year.

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

Annual Report FAQs

What is the current share price of IRCON INTERNATIONAL?

IRCON INTERNATIONAL currently trades at Rs 218.9 per share. You can check out the latest share price performance of IRCON INTERNATIONAL here...

What was the revenue of IRCON INTERNATIONAL in FY22? How does it compare to earlier years?

The revenues of IRCON INTERNATIONAL stood at Rs 78,216 m in FY22, which was up 35.5% compared to Rs 57,737 m reported in FY21.

IRCON INTERNATIONAL's revenue has grown from Rs 43,008 m in FY18 to Rs 78,216 m in FY22.

Over the past 5 years, the revenue of IRCON INTERNATIONAL has grown at a CAGR of 16.1%.

What was the net profit of IRCON INTERNATIONAL in FY22? How does it compare to earlier years?

The net profit of IRCON INTERNATIONAL stood at Rs 5,323 m in FY22, which was up 48.2% compared to Rs 3,592 m reported in FY21.

This compares to a net profit of Rs 4,549 m in FY20 and a net profit of Rs 4,285 m in FY19.

Over the past 5 years, IRCON INTERNATIONAL net profit has grown at a CAGR of 7.2%.

What does the cash flow statement of IRCON INTERNATIONAL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of IRCON INTERNATIONAL reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 14,054 m as compared to Rs 5,181 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -12,272 m as compared to Rs -7,774 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 6,794 m as compared to Rs 1,686 m in FY21.

Here's the cash flow statement of IRCON INTERNATIONAL for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations-26,168-11,854-1,3575,18114,054
From Investments-2176,1834,467-7,774-12,272
From Financial Activity27,374-926-2,7531,6866,794
Net Cashflow1,004-6,620358-9878,438

What does the Key Ratio analysis of IRCON INTERNATIONAL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of IRCON INTERNATIONAL reveals:

  • Operating profit margins witnessed a fall and stood at 7.2% in FY22 as against 9.0% in FY21.
  • Net profit margins grew from 6.7% in FY21 to 7.2% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.3 as compared to 0.1 in FY21.

Here's the ratio/financial analysis of IRCON INTERNATIONAL for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)8.88.97.29.07.2
Net Profit Margin (%)10.08.98.46.77.2
Debt to Equity Ratio (x)0.90.60.00.10.3

Read: Latest Annual Report Analysis of IRCON INTERNATIONAL

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