IRCTC 2022-23 Annual Report Analysis

Sun, 6 Aug

IRCTC 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.

IRCTC Income Statement Analysis

• Operating income during the year rose 88.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 36.8% in FY23 as against 46.2% in FY22.
• Depreciation charges increased by 9.7% and finance costs increased by 45.8% YoY, respectively.
• Other income grew by 56.1% YoY.
• Net profit for the year grew by 52.5% YoY.
• Net profit margins during the year declined from 35.1% in FY22 to 28.4% in FY23.

IRCTC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,786	35,415	88.5%
Other income	Rs m	771	1,204	56.1%
Total Revenues	Rs m	19,557	36,619	87.2%
Gross profit	Rs m	8,683	13,034	50.1%
Depreciation	Rs m	490	537	9.7%
Interest	Rs m	111	161	45.8%
Profit before tax	Rs m	8,854	13,540	52.9%
Tax	Rs m	2,258	3,481	54.2%
Profit after tax	Rs m	6,596	10,059	52.5%
Gross profit margin	%	46.2	36.8
Effective tax rate	%	25.5	25.7
Net profit margin	%	35.1	28.4

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IRCTC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 24 billion as compared to Rs 18 billion in FY22, thereby witnessing an increase of 33.0%.
• Current assets rose 29% and stood at Rs 44 billion, while fixed assets rose 47% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 50 billion as against Rs 38 billion during FY22, thereby witnessing a growth of 31%.

IRCTC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,703	24,784	32.5
Current Liabilities	Rs m	17,979	23,914	33.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	37,894	49,582	30.8
Current assets	Rs m	33,780	43,526	28.9
Fixed Assets	Rs m	4,114	6,056	47.2
Total Assets	Rs m	37,894	49,582	30.8

IRCTC Cash Flow Statement Analysis

• IRCTC's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 54.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 30.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 606 million from the Rs 232 million net cash flows seen during FY22.

IRCTC 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	5,240	8,101	54.6%
Cash Flow from Investing Activities	Rs m	-2,424	-3,151	-
Cash Flow from Financing Activities	Rs m	-2,584	-4,343	-
Net Cash Flow	Rs m	232	606	161.6%

Current Valuations for IRCTC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.6, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 653.3, stands at 52.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 21.1 times, while the price to sales ratio stands at 14.8 times.
• The company's price to cash flow (P/CF) ratio stood at 52.7 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	23.5	44.3
TTM Earnings per share	Rs	8.2	12.6
Diluted earnings per share	Rs	8.2	12.6
Price to Cash Flow	x	87.5	52.7
TTM P/E ratio	x	93.4	52.0
Price / Book Value ratio	x	150.6	22.5
Market Cap	Rs m	2,817,240	558,820
Dividends per share (Unadj.)	Rs	3.5	5.5

Ratio Analysis for IRCTC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 1.9x 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 85.0x during FY23, from 81.1x 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 40.6% during FY23, from 35.3% 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 55.3% during FY23, from 47.9% 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 improved and stood at 20.6% during FY23, from 17.7% 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	1.9	1.8
Debtors’ Days	Days	1,110	1,178
Interest coverage	x	81.1	85.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.7	20.6
Return on equity	%	35.3	40.6
Return on capital employed	%	47.9	55.3

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 up from Rs 642.2 to Rs 653.3, registering a gain of Rs 11.1 or around 1.7%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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