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LTIMINDTREE 2022-23 Annual Report Analysis

Mon, 26 Jun

LTIMINDTREE 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.

LTIMINDTREE Income Statement Analysis

• Operating income during the year rose 104.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 92.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.3% in FY23 as against 19.5% in FY22.
• Depreciation charges increased by 80.1% and finance costs increased by 97.8% YoY, respectively.
• Other income grew by 8.2% YoY.
• Net profit for the year grew by 85.2% YoY.
• Net profit margins during the year declined from 14.7% in FY22 to 13.3% in FY23.

LTIMINDTREE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	156,687	319,754	104.1%
Other income	Rs m	4,745	5,133	8.2%
Total Revenues	Rs m	161,432	324,887	101.3%
Gross profit	Rs m	30,506	58,579	92.0%
Depreciation	Rs m	3,549	6,392	80.1%
Interest	Rs m	728	1,440	97.8%
Profit before tax	Rs m	30,974	55,880	80.4%
Tax	Rs m	7,989	13,317	66.7%
Profit after tax	Rs m	22,985	42,563	85.2%
Gross profit margin	%	19.5	18.3
Effective tax rate	%	25.8	23.8
Net profit margin	%	14.7	13.3

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LTIMINDTREE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 51 billion as compared to Rs 29 billion in FY22, thereby witnessing an increase of 74.9%.
• Current assets rose 86% and stood at Rs 165 billion, while fixed assets rose 57% and stood at Rs 56 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 221 billion as against Rs 124 billion during FY22, thereby witnessing a growth of 78%.

LTIMINDTREE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	87,563	155,151	77.2
Current Liabilities	Rs m	29,183	51,042	74.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	124,144	220,944	78.0
Current assets	Rs m	88,656	165,097	86.2
Fixed Assets	Rs m	35,488	55,847	57.4
Total Assets	Rs m	124,144	220,944	78.0

LTIMINDTREE Cash Flow Statement Analysis

• LTIMINDTREE's cash flow from operating activities (CFO) during FY23 stood at Rs 29 billion, an improvement of 74.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -20 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 billion from the Rs -4 billion net cash flows seen during FY22.

LTIMINDTREE 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	16,520	28,831	74.5%
Cash Flow from Investing Activities	Rs m	-9,594	-2,389	-
Cash Flow from Financing Activities	Rs m	-10,458	-19,799	-
Net Cash Flow	Rs m	-3,645	7,278	-

Current Valuations for LTIMINDTREE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 143.9, an improvement from the EPS of Rs 131.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,995.1, stands at 43.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.5 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 30.7 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	894.0	1,080.9
TTM Earnings per share	Rs	131.1	143.9
Diluted earnings per share	Rs	77.7	143.8
Price to Cash Flow	x	68.7	30.7
TTM P/E ratio	x	56.8	43.1
Price / Book Value ratio	x	11.1	9.7
Market Cap	Rs m	974,607	1,503,090
Dividends per share (Unadj.)	Rs	55.0	60.0

Ratio Analysis for LTIMINDTREE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY23, from 3.0x 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 deteriorated and stood at 39.8x during FY23, from 43.5x 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 27.4% during FY23, from 26.2% 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 36.9% during FY23, from 36.2% 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 19.9% during FY23, from 19.1% 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	3.0	3.2
Debtors’ Days	Days	66	61
Interest coverage	x	43.5	39.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.1	19.9
Return on equity	%	26.2	27.4
Return on capital employed	%	36.2	36.9

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

LTIMINDTREE Share Price Performance

Over the last one year, LTIMINDTREE share price has moved up from Rs 4,034.0 to Rs 4,995.1, registering a gain of Rs 961.1 or around 23.8%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,903.3 (up 0.2%). Over the last one year it has moved up from 28,147.6 to 28,903.3, a gain of 756 points (up 2.7%).

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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