L&T INFOTECH 2021-22 Annual Report Analysis

Wed, 22 Jun

L&T INFOTECH 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.

L&T INFOTECH Income Statement Analysis

• Operating income during the year rose 26.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY22 as against 21.9% in FY21.
• Depreciation charges increased by 6.7% and finance costs decreased by 7.6% YoY, respectively.
• Other income grew by 65.0% YoY.
• Net profit for the year grew by 18.6% YoY.
• Net profit margins during the year declined from 15.7% in FY21 to 14.7% in FY22.

L&T INFOTECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	123,698	156,687	26.7%
Other income	Rs m	2,875	4,745	65.0%
Total Revenues	Rs m	126,573	161,432	27.5%
Gross profit	Rs m	27,120	30,506	12.5%
Depreciation	Rs m	3,325	3,549	6.7%
Interest	Rs m	788	728	-7.6%
Profit before tax	Rs m	25,882	30,974	19.7%
Tax	Rs m	6,500	7,989	22.9%
Profit after tax	Rs m	19,382	22,985	18.6%
Gross profit margin	%	21.9	19.5
Effective tax rate	%	25.1	25.8
Net profit margin	%	15.7	14.7

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L&T INFOTECH Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 29 billion as compared to Rs 26 billion in FY21, thereby witnessing an increase of 10.9%.
• Current assets rose 9% and stood at Rs 89 billion, while fixed assets rose 41% and stood at Rs 35 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 124 billion as against Rs 107 billion during FY21, thereby witnessing a growth of 17%.

L&T INFOTECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	72,240	87,563	21.2
Current Liabilities	Rs m	26,323	29,183	10.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	106,545	124,144	16.5
Current assets	Rs m	81,313	88,656	9.0
Fixed Assets	Rs m	25,232	35,488	40.6
Total Assets	Rs m	106,545	124,144	16.5

L&T INFOTECH Cash Flow Statement Analysis

• L&T INFOTECH's cash flow from operating activities (CFO) during FY22 stood at Rs 17 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -4 billion from the Rs 2 billion net cash flows seen during FY21.

L&T INFOTECH 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	23,996	16,520	-31.2%
Cash Flow from Investing Activities	Rs m	-16,560	-9,594	-
Cash Flow from Financing Activities	Rs m	-5,088	-10,458	-
Net Cash Flow	Rs m	2,342	-3,645	-

Current Valuations for L&T INFOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 131.1, an improvement from the EPS of Rs 110.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,059.3, stands at 31.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 36.7 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	707.9	894.0
TTM Earnings per share	Rs	110.9	131.1
Diluted earnings per share	Rs	110.6	131.1
Price to Cash Flow	x	31.3	36.7
TTM P/E ratio	x	36.6	31.0
Price / Book Value ratio	x	7.1	11.1
Market Cap	Rs m	510,049	974,607
Dividends per share (Unadj.)	Rs	40.0	55.0

Ratio Analysis for L&T INFOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY22, from 3.1x 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 43.5x during FY22, from 33.8x 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 declined and down at 26.2% during FY22, from 26.8% 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 declined and down at 36.2% during FY22, from 36.9% 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 19.1% during FY22, from 18.9% 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	3.1	3.0
Debtors’ Days	Days	61	66
Interest coverage	x	33.8	43.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.9	19.1
Return on equity	%	26.8	26.2
Return on capital employed	%	36.9	36.2

To see how L&T INFOTECH has performed over the last 5 years, please visit here.

L&T INFOTECH Share Price Performance

Over the last one year, L&T INFOTECH share price has moved down from Rs 4,112.1 to Rs 4,059.3, registering a loss of Rs 52.8 or around 1.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,027.5 (down 0.3%). Over the last one year it has moved down from 29,272.0 to 28,027.5, a loss of 1,244 points (down 4.3%).

Overall, the S&P BSE SENSEX is down 1.0% over the year.

(To know more, check out historical annual results for L&T INFOTECH and quarterly results for L&T INFOTECH)

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