INTELLECT DESIGN 2021-22 Annual Report Analysis

Tue, 12 Jul

INTELLECT DESIGN 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.

INTELLECT DESIGN Income Statement Analysis

• Operating income during the year rose 25.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.3% in FY22 as against 23.9% in FY21.
• Depreciation charges increased by 27.2% and finance costs decreased by 44.1% YoY, respectively.
• Other income grew by 219.4% YoY.
• Net profit for the year grew by 35.8% YoY.
• Net profit margins during the year grew from 17.1% in FY21 to 18.5% in FY22.

INTELLECT DESIGN Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	14,975	18,782	25.4%
Other income	Rs m	127	405	219.4%
Total Revenues	Rs m	15,101	19,187	27.1%
Gross profit	Rs m	3,586	4,750	32.5%
Depreciation	Rs m	767	976	27.2%
Interest	Rs m	130	73	-44.1%
Profit before tax	Rs m	2,816	4,107	45.9%
Tax	Rs m	255	627	146.5%
Profit after tax	Rs m	2,562	3,480	35.8%
Gross profit margin	%	23.9	25.3
Effective tax rate	%	9.0	15.3
Net profit margin	%	17.1	18.5

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

INTELLECT DESIGN Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 6 billion in FY21, thereby witnessing an increase of 24.9%.
• Current assets rose 50% and stood at Rs 16 billion, while fixed assets rose 5% and stood at Rs 10 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 25 billion as against Rs 20 billion during FY21, thereby witnessing a growth of 29%.

INTELLECT DESIGN Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,301	17,208	29.4
Current Liabilities	Rs m	6,108	7,629	24.9
Long-term Debt	Rs m	76	0	-100.0
Total Liabilities	Rs m	19,634	25,335	29.0
Current assets	Rs m	10,451	15,672	49.9
Fixed Assets	Rs m	9,183	9,664	5.2
Total Assets	Rs m	19,634	25,335	29.0

INTELLECT DESIGN Cash Flow Statement Analysis

• INTELLECT DESIGN's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 109.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -521 million, an improvement of 77% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 14 million from the Rs 450 million net cash flows seen during FY21.

INTELLECT DESIGN 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	4,633	4,529	-2.2%
Cash Flow from Investing Activities	Rs m	-1,905	-3,991	-
Cash Flow from Financing Activities	Rs m	-2,253	-521	-
Net Cash Flow	Rs m	450	14	-96.8%

Current Valuations for INTELLECT DESIGN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.9, an improvement from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 676.3, stands at 26.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 23.1 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	112.6	139.6
TTM Earnings per share	Rs	19.3	25.9
Diluted earnings per share	Rs	19.0	25.8
Price to Cash Flow	x	30.0	23.1
TTM P/E ratio	x	39.0	26.2
Price / Book Value ratio	x	4.0	6.0
Market Cap	Rs m	53,403	103,129
Dividends per share (Unadj.)	Rs	0.0	2.5

Ratio Analysis for INTELLECT DESIGN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x 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 57.6x during FY22, from 22.7x 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 20.2% during FY22, from 19.3% 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 24.3% during FY22, from 22.0% 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 14.0% during FY22, from 13.7% 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	2.1
Debtors’ Days	Days	46	37
Interest coverage	x	22.7	57.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.7	14.0
Return on equity	%	19.3	20.2
Return on capital employed	%	22.0	24.3

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

INTELLECT DESIGN Share Price Performance

Over the last one year, INTELLECT DESIGN share price has moved down from Rs 711.9 to Rs 676.3, registering a loss of Rs 35.6 or around 5.0%.

Overall, the S&P BSE SENSEX is up 2.5% over the year.

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

Read: Latest Annual Report Analysis of INTELLECT DESIGN