INDIAMART INTERMESH 2022-23 Annual Report Analysis

Fri, 19 May

INDIAMART INTERMESH 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.

INDIAMART INTERMESH Income Statement Analysis

• Operating income during the year rose 30.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.3% in FY23 as against 39.2% in FY22.
• Depreciation charges increased by 160.1% and finance costs increased by 50.9% YoY, respectively.
• Other income grew by 60.9% YoY.
• Net profit for the year declined by 4.6% YoY.
• Net profit margins during the year declined from 39.5% in FY22 to 28.8% in FY23.

INDIAMART INTERMESH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,535	9,854	30.8%
Other income	Rs m	1,122	1,805	60.9%
Total Revenues	Rs m	8,657	11,659	34.7%
Gross profit	Rs m	2,956	2,300	-22.2%
Depreciation	Rs m	119	311	160.1%
Interest	Rs m	54	82	50.9%
Profit before tax	Rs m	3,904	3,713	-4.9%
Tax	Rs m	928	875	-5.8%
Profit after tax	Rs m	2,976	2,838	-4.6%
Gross profit margin	%	39.2	23.3
Effective tax rate	%	23.8	23.6
Net profit margin	%	39.5	28.8

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INDIAMART INTERMESH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 30.1%.
• Current assets fell 3% and stood at Rs 24 billion, while fixed assets rose 85% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 36 billion as against Rs 31 billion during FY22, thereby witnessing a growth of 16%.

INDIAMART INTERMESH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,610	20,328	9.2
Current Liabilities	Rs m	6,582	8,561	30.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	31,104	36,040	15.9
Current assets	Rs m	24,402	23,634	-3.1
Fixed Assets	Rs m	6,703	12,407	85.1
Total Assets	Rs m	31,104	36,040	15.9

INDIAMART INTERMESH Cash Flow Statement Analysis

• INDIAMART INTERMESH's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 18.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 86 million from the Rs 94 million net cash flows seen during FY22.

INDIAMART INTERMESH 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	4,023	4,758	18.3%
Cash Flow from Investing Activities	Rs m	-3,354	-3,240	-
Cash Flow from Financing Activities	Rs m	-575	-1,433	-
Net Cash Flow	Rs m	94	86	-9.2%

Current Valuations for INDIAMART INTERMESH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 92.8, an decline from the EPS of Rs 97.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,616.0, stands at 53.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 17.4 times.
• The company's price to cash flow (P/CF) ratio stood at 43.3 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	246.6	322.2
TTM Earnings per share	Rs	97.4	92.8
Diluted earnings per share	Rs	97.2	92.7
Price to Cash Flow	x	42.8	43.3
TTM P/E ratio	x	42.7	53.5
Price / Book Value ratio	x	11.2	6.7
Market Cap	Rs m	208,759	136,438
Dividends per share (Unadj.)	Rs	2.0	20.0

Ratio Analysis for INDIAMART INTERMESH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY23, from 3.7x 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 46.5x during FY23, from 73.3x 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 declined and down at 14.0% during FY23, from 16.0% 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 declined and down at 18.7% during FY23, from 21.3% 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 declined and down at 8.1% during FY23, from 9.7% 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	3.7	2.8
Debtors’ Days	Days	1	3
Interest coverage	x	73.3	46.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	8.1
Return on equity	%	16.0	14.0
Return on capital employed	%	21.3	18.7

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

INDIAMART INTERMESH Share Price Performance

Over the last one year, INDIAMART INTERMESH share price has moved up from Rs 4,146.4 to Rs 5,616.0, registering a gain of Rs 1,469.7 or around 35.4%.

Overall, the S&P BSE SENSEX is up 13.3% over the year.

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