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INFO EDGE 2017-18 Annual Report Analysis

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INFO EDGE 2017-18 Annual Report Analysis
Wed, 19 Dec

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 45.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.1% in FY18 as against 20.0% in FY17.
  • Depreciation charges decreased by 9.6% and finance costs increased by 47.8% YoY, respectively.
  • Other income grew by 7.2% YoY.
  • Net profit for the year declined by 1273.2% YoY.
  • Net profit margins during the year grew from 4.4% in FY17 to 46.5% 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 829 888 7.2%
Total Revenues Rs m 9,705 10,770 11.0%
Gross profit Rs m 1,772 2,582 45.7%
Depreciation Rs m 328 296 -9.6%
Interest Rs m 2 3 47.8%
Profit before tax Rs m 2,271 3,170 39.6%
Tax Rs m 478 845 76.8%
Profit after tax Rs m -427 5,010 -1,273.2%
Gross profit margin % 20.0 26.1
Effective tax rate % 21.1 26.7
Net profit margin % -4.4 46.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 19.4%.
  • Long-term debt down at Rs 3 million as compared to Rs 4 million during FY17, a fall of 24.3%.
  • Current assets rose 25% and stood at Rs 18 billion, while fixed assets fell 7% and stood at Rs 5 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 26 billion as against Rs 21 billion during FY17, thereby witnessing a growth of 26%.

INFO EDGE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 15,925 20,450 28.4
 
Current Liabilities Rs m 4,650 5,554 19.4
Long-term Debt Rs m 4 3 -24.3
Total Liabilities Rs m 20,601 25,963 26.0
 
Current assets Rs m 14,348 17,887 24.7
Fixed Assets Rs m 4,930 4,566 -7.4
Total Assets Rs m 20,601 25,963 26.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 2,135 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 65 293 348.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for INFO EDGE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.2, an improvement from the EPS of Rs -3.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,572.6, stands at 104.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 13.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.8 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 73.2 81.3
TTM Earnings per share Rs -3.5 41.2
Diluted earnings per share Rs -3.6 41.8
Price to Cash Flow x 106.1 32.8
TTM P/E ratio x 105.5 104.4
Price / Book Value ratio x 6.6 6.7
Market Cap Rs m 190,625 188,580
Dividends per share (Unadj.) Rs 4.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 deteriorated and stood at 933.4x during FY18, from 988.2x 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 24.5% during FY18, from -2.7% 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 28.6% during FY18, from 0.3% 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 19.3% during FY18, from -2.1% 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 988.2 933.4
Debt to equity ratio x 0.0 0.0
Return on assets % -2.1 19.3
Return on equity % -2.7 24.5
Return on capital employed % 0.3 28.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,295.1 to Rs 1,572.6, registering a gain of Rs 277.5 or around 21.4%.

Meanwhile, the S&P BSE IT Index is trading at Rs 14,273.6 (down 1.2%). Over the last one year it has moved up from 10,855.8 to 14,273.6, a gain of 3,418 points (up 31.5%).

Overall, the S&P BSE SENSEX is up 8.6% over the year.

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

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INFO EDGE Announces Quarterly Results (3QFY19); Net Profit Up 39.3% (Quarterly Result Update)

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For the quarter ended December 2018, INFO EDGE has posted a net profit of Rs 743 m (up 39.3% YoY). Sales on the other hand came in at Rs 3 bn (up 23.7% YoY). Read on for a complete analysis of INFO EDGE's quarterly results.

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