IRCON INTERNATIONAL 2022-23 Annual Report Analysis

Fri, 25 Aug

IRCON INTERNATIONAL 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.

IRCON INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 40.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.7% in FY23 as against 8.0% in FY22.
• Depreciation charges increased by 12.9% and finance costs increased by 23.8% YoY, respectively.
• Other income grew by 86.0% YoY.
• Net profit for the year grew by 29.2% YoY.
• Net profit margins during the year declined from 8.0% in FY22 to 7.4% in FY23.

IRCON INTERNATIONAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	73,797	103,679	40.5%
Other income	Rs m	4,420	8,221	86.0%
Total Revenues	Rs m	78,216	111,901	43.1%
Gross profit	Rs m	5,910	4,847	-18.0%
Depreciation	Rs m	952	1,075	12.9%
Interest	Rs m	2,491	3,084	23.8%
Profit before tax	Rs m	6,887	8,910	29.4%
Tax	Rs m	964	1,258	30.5%
Profit after tax	Rs m	5,923	7,652	29.2%
Gross profit margin	%	8.0	4.7
Effective tax rate	%	14.0	14.1
Net profit margin	%	8.0	7.4

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IRCON INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 73 billion as compared to Rs 73 billion in FY22, thereby witnessing an decrease of -0.1%.
• Long-term debt stood at Rs 14 billion as compared to Rs 13 billion during FY22, a growth of 10.4%.
• Current assets rose 9% and stood at Rs 112 billion, while fixed assets rose 2% and stood at Rs 42 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 154 billion as against Rs 144 billion during FY22, thereby witnessing a growth of 7%.

IRCON INTERNATIONAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	46,656	52,115	11.7
Current Liabilities	Rs m	72,755	72,654	-0.1
Long-term Debt	Rs m	13,044	14,403	10.4
Total Liabilities	Rs m	143,738	154,280	7.3
Current assets	Rs m	102,514	112,166	9.4
Fixed Assets	Rs m	41,210	42,106	2.2
Total Assets	Rs m	143,738	154,280	7.3

IRCON INTERNATIONAL Cash Flow Statement Analysis

• IRCON INTERNATIONAL's cash flow from operating activities (CFO) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 11 billion from the Rs 8 billion net cash flows seen during FY22.

IRCON INTERNATIONAL 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	14,141	-1,678	-
Cash Flow from Investing Activities	Rs m	-12,274	14,679	-
Cash Flow from Financing Activities	Rs m	6,708	-2,234	-
Net Cash Flow	Rs m	8,436	10,803	28.1%

Current Valuations for IRCON INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 107.8, stands at 12.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	78.5	110.2
TTM Earnings per share	Rs	6.3	8.1
Diluted earnings per share	Rs	6.3	8.1
Price to Cash Flow	x	5.4	5.5
TTM P/E ratio	x	7.0	12.8
Price / Book Value ratio	x	1.4	0.9
Market Cap	Rs m	66,306	47,778
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for IRCON INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.4x 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 3.9x during FY23, from 3.8x 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 improved and stood at 14.7% during FY23, from 12.7% 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 18.0% during FY23, from 15.7% 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 improved and stood at 7.0% during FY23, from 5.9% 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	1.4	1.5
Debtors’ Days	Days	3	3
Interest coverage	x	3.8	3.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	5.9	7.0
Return on equity	%	12.7	14.7
Return on capital employed	%	15.7	18.0

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 up from Rs 40.1 to Rs 107.8, registering a gain of Rs 67.8 or around 169.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 43,991.7 (down 1.3%). Over the last one year it has moved up from 31,546.1 to 43,991.7, a gain of 12,446 points (up 39.5%).

Overall, the S&P BSE SENSEX is up 9.9% over the year.

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