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INFO EDGE 2017-18 Annual Report Analysis
Sat, 31 Mar

INFO EDGE has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

INFO EDGE Income Statement Analysis

  • Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 315.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 58.2% in FY18 as against 15.6% in FY17.
  • Depreciation charges decreased by 9.5% and finance costs increased by 30.6% YoY, respectively.
  • Other income declined by 4.2% YoY.
  • Net profit for the year grew by 271.2% YoY.
  • Net profit margins during the year grew from 16.5% in FY17 to 55.2% in FY18.

INFO EDGE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 8,876 9,882 11.3%
Other income Rs m 927 888 -4.2%
Total Revenues Rs m 9,803 10,770 9.9%
Gross profit Rs m 1,387 5,756 315.1%
Depreciation Rs m 328 296 -9.5%
Interest Rs m 39 51 30.6%
Profit before tax Rs m 1,947 6,296 223.4%
Tax Rs m 478 845 76.8%
Profit after tax Rs m 1,469 5,451 271.2%
Gross profit margin % 15.6 58.2
Effective tax rate % 24.6 13.4
Net profit margin % 16.5 55.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

INFO EDGE Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 6 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 18.8%.
  • Long-term debt down at Rs 3 million as compared to Rs 4 million during FY17, a fall of 23.8%.
  • Current assets rose 24% and stood at Rs 18 billion, while fixed assets rose 26% and stood at Rs 14 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 32 billion as against Rs 25 billion during FY17, thereby witnessing a growth of 25%.

INFO EDGE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 14,944 19,660 31.6
 
Current Liabilities Rs m 4,676 5,554 18.8
Long-term Debt Rs m 4 3 -23.8
Total Liabilities Rs m 25,219 31,501 24.9
 
Current assets Rs m 14,374 17,887 24.4
Fixed Assets Rs m 10,845 13,614 25.5
Total Assets Rs m 25,219 31,501 24.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INFO EDGE Cash Flow Statement Analysis

  • INFO EDGE's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 18.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -748 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 293 million from the Rs 65 million net cash flows seen during FY17.

INFO EDGE Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 2,134 2,535 18.7%
Cash Flow from Investing Activities Rs m -1,650 -1,494 -
Cash Flow from Financing Activities Rs m -420 -748 -
Net Cash Flow Rs m 65 293 349.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INFO EDGE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.8, an improvement from the EPS of Rs 12.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,166.8, stands at 82.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 14.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 73.3 81.3
TTM Earnings per share Rs 12.1 44.8
Diluted earnings per share Rs 11.4 42.3
Price to Cash Flow x 57.4 23.9
TTM P/E ratio x 59.1 82.5
Price / Book Value ratio x 7.0 7.0
Market Cap Rs m 104,250 137,244
Dividends per share (Unadj.) Rs 4.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INFO EDGE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.2x during FY18, from 3.1x during FY17. 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 123.5x during FY18, from 50.4x during FY17. 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 27.7% during FY18, from 9.8% during FY18. 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 32.3% during FY18, from 13.3% during FY17. 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 17.5% during FY18, from 6.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 3.1 3.2
Debtors’ Days Days 4 2
Interest coverage x 50.4 123.5
Debt to equity ratio x 0.0 0.0
Return on assets % 6.0 17.5
Return on equity % 9.8 27.7
Return on capital employed % 13.3 32.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

INFO EDGE Share Price Performance

Over the last one year, INFO EDGE share price has moved up from Rs 799.5 to Rs 1,166.8, registering a gain of Rs 367.3 or around 45.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 12,100.6 (down 0.3%). Over the last one year it has moved up from 10,365.5 to 12,100.6, a gain of 1,735 points (up 16.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of INFO EDGE?

INFO EDGE currently trades at Rs 5,497.4 per share. You can check out the latest share price performance of INFO EDGE here...

What was the revenue of INFO EDGE in FY18? How does it compare to earlier years?

The revenues of INFO EDGE stood at Rs 10,770 m in FY18, which was up 9.9% compared to Rs 9,803 m reported in FY17.

INFO EDGE's revenue has grown from Rs 6,174 m in FY14 to Rs 10,770 m in FY18.

Over the past 5 years, the revenue of INFO EDGE has grown at a CAGR of 14.9%.

What was the net profit of INFO EDGE in FY18? How does it compare to earlier years?

The net profit of INFO EDGE stood at Rs 5,451 m in FY18, which was up 271.2% compared to Rs 1,469 m reported in FY17.

This compares to a net profit of Rs 4,194 m in FY16 and a net loss of Rs -144 m in FY15.

Over the past 5 years, INFO EDGE net profit has grown at a CAGR of 72.9%.

What does the cash flow statement of INFO EDGE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of INFO EDGE reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 2,535 m as compared to Rs 2,134 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -1,494 m as compared to Rs -1,650 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -748 m as compared to Rs -420 m in FY17.

Here's the cash flow statement of INFO EDGE for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations8085107822,1342,535
From Investments-2,035-10,385-15-1,650-1,494
From Financial Activity1,29710,250-661-420-748
Net Cashflow7025010565293

What does the Key Ratio analysis of INFO EDGE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of INFO EDGE reveals:

  • Operating profit margins witnessed a fall and down at 58.2% in FY18 as against 15.6% in FY17.
  • Net profit margins grew from 16.5% in FY17 to 55.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.0 as compared to 0.0 in FY17.

Here's the ratio/financial analysis of INFO EDGE for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)16.62.16.415.658.2
Net Profit Margin (%)10.8-2.056.116.555.2
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of INFO EDGE

 

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