INFO EDGE 2018-19 Annual Report Analysis

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INFO EDGE 2018-19 Annual Report Analysis
Tue, 23 Jul

INFO EDGE has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

INFO EDGE Income Statement Analysis

  • Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 21.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.2% in FY19 as against 26.1% in FY18.
  • Depreciation charges decreased by 25.3% and finance costs increased by 226.5% YoY, respectively.
  • Other income grew by 35.5% YoY.
  • Net profit for the year grew by 18.2% YoY.
  • Net profit margins during the year grew from 46.5% in FY18 to 46.6% in FY19.

INFO EDGE Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 9,882 11,509 16.5%
Other income Rs m 888 1,203 35.5%
Total Revenues Rs m 10,770 12,712 18.0%
Gross profit Rs m 2,582 3,128 21.1%
Depreciation Rs m 296 221 -25.3%
Interest Rs m 3 11 226.5%
Profit before tax Rs m 3,170 4,098 29.3%
Tax Rs m 845 1,243 47.1%
Profit after tax Rs m 5,010 5,922 18.2%
Gross profit margin % 26.1 27.2
Effective tax rate % 26.7 30.3
Net profit margin % 46.5 46.6
* 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 FY19 stood at Rs 6 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 16.1%.
  • Long-term debt stood at Rs 4 million as compared to Rs 3 million during FY18, a growth of 32.1%.
  • Current assets rose 8% and stood at Rs 19 billion, while fixed assets rose 108% and stood at Rs 10 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 32 billion as against Rs 26 billion during FY18, thereby witnessing a growth of 23%.

INFO EDGE Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 20,450 25,426 24.3
 
Current Liabilities Rs m 5,554 6,451 16.1
Long-term Debt Rs m 3 4 32.1
Total Liabilities Rs m 25,963 31,890 22.8
 
Current assets Rs m 17,887 19,331 8.1
Fixed Assets Rs m 4,566 9,507 108.2
Total Assets Rs m 25,963 31,890 22.8
* 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 FY19 stood at Rs 3 billion, an improvement of 8.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -591 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -781 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs 293 million net cash flows seen during FY18.

INFO EDGE Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 2,535 2,757 8.8%
Cash Flow from Investing Activities Rs m -1,494 -591 -
Cash Flow from Financing Activities Rs m -748 -781 -
Net Cash Flow Rs m 293 1,385 373.4%
* 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 48.5, an improvement from the EPS of Rs 41.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,181.0, stands at 92.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 16.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 81.3 94.3
TTM Earnings per share Rs 41.2 48.5
Diluted earnings per share Rs 41.8 49.4
Price to Cash Flow x 46.1 28.3
TTM P/E ratio x 94.1 92.8
Price / Book Value ratio x 6.7 7.3
Market Cap Rs m 265,188 261,546
Dividends per share (Unadj.) Rs 5.5 6.0
* 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 deteriorated and stood at 3.0x during FY19, from 3.2x during FY18. 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 370.2x during FY19, from 933.4x during FY18. 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 23.3% during FY19, from 24.5% during FY19. 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 28.2% during FY19, from 28.6% during FY18. 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 18.6% during FY19, from 19.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 3.2 3.0
Debtors’ Days Days 2 2
Interest coverage x 933.4 370.2
Debt to equity ratio x 0.0 0.0
Return on assets % 19.3 18.6
Return on equity % 24.5 23.3
Return on capital employed % 28.6 28.2
* 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 1,342.0 to Rs 2,181.0, registering a gain of Rs 839.1 or around 62.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,688.9 (up 1.2%). Over the last one year it has moved up from 14,589.0 to 15,688.9, a gain of 1,100 points (up 7.5%).

Overall, the S&P BSE SENSEX is up 3.8% over the year.

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

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