IRCTC 2021-22 Annual Report Analysis

Thu, 4 Aug

IRCTC 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.

IRCTC Income Statement Analysis

• Operating income during the year rose 142.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 286.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 46.6% in FY22 as against 29.2% in FY21.
• Depreciation charges increased by 5.7% and finance costs increased by 33.5% YoY, respectively.
• Other income declined by 14.3% YoY.
• Net profit for the year grew by 254.9% YoY.
• Net profit margins during the year grew from 24.1% in FY21 to 35.3% in FY22.

IRCTC Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,767	18,795	142.0%
Other income	Rs m	850	728	-14.3%
Total Revenues	Rs m	8,616	19,523	126.6%
Gross profit	Rs m	2,272	8,767	286.0%
Depreciation	Rs m	463	490	5.7%
Interest	Rs m	83	111	33.5%
Profit before tax	Rs m	2,575	8,895	245.4%
Tax	Rs m	705	2,258	220.4%
Profit after tax	Rs m	1,870	6,637	254.9%
Gross profit margin	%	29.2	46.6
Effective tax rate	%	27.4	25.4
Net profit margin	%	24.1	35.3

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

IRCTC Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 20 billion as compared to Rs 16 billion in FY21, thereby witnessing an increase of 25.7%.
• Current assets rose 28% and stood at Rs 36 billion, while fixed assets rose 11% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 40 billion as against Rs 31 billion during FY21, thereby witnessing a growth of 26%.

IRCTC Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	14,558	18,839	29.4
Current Liabilities	Rs m	16,094	20,227	25.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	31,479	39,805	26.4
Current assets	Rs m	27,780	35,691	28.5
Fixed Assets	Rs m	3,700	4,114	11.2
Total Assets	Rs m	31,479	39,805	26.4

IRCTC Cash Flow Statement Analysis

• IRCTC's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion, an improvement of 111.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 232 million from the Rs -3 billion net cash flows seen during FY21.

IRCTC 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	2,475	5,237	111.6%
Cash Flow from Investing Activities	Rs m	-4,531	-2,424	-
Cash Flow from Financing Activities	Rs m	-468	-2,581	-
Net Cash Flow	Rs m	-2,524	232	-

Current Valuations for IRCTC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an decline from the EPS of Rs 11.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 638.8, stands at 77.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 27.1 times, while the price to sales ratio stands at 27.2 times.
• The company's price to cash flow (P/CF) ratio stood at 395.3 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	48.5	23.5
TTM Earnings per share	Rs	11.7	8.3
Diluted earnings per share	Rs	2.3	8.3
Price to Cash Flow	x	602.0	395.3
TTM P/E ratio	x	739.8	77.0
Price / Book Value ratio	x	17.1	149.5
Market Cap	Rs m	248,356	2,817,240
Dividends per share (Unadj.)	Rs	1.0	3.5

Ratio Analysis for IRCTC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.7x 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 81.5x during FY22, from 32.1x 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 35.2% during FY22, from 12.8% 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 improved and stood at 47.8% during FY22, from 18.3% 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 improved and stood at 17.0% during FY22, from 6.2% 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	1.7	1.8
Debtors’ Days	Days	2,450	1,112
Interest coverage	x	32.1	81.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	17.0
Return on equity	%	12.8	35.2
Return on capital employed	%	18.3	47.8

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

IRCTC Share Price Performance

Over the last one year, IRCTC share price has moved down from Rs 2,491.4 to Rs 638.8, registering a loss of Rs 1,852.7 or around 74.4%.

Overall, the S&P BSE SENSEX is up 10.1% over the year.

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

Read: Latest Annual Report Analysis of IRCTC