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INFO EDGE 2021-22 Annual Report Analysis
Sun, 7 Aug

INFO EDGE 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.

INFO EDGE Income Statement Analysis

  • Operating income during the year rose 40.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 575.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 731.3% in FY22 as against 152.5% in FY21.
  • Depreciation charges increased by 0.2% and finance costs increased by 5.2% YoY, respectively.
  • Other income grew by 194.8% YoY.
  • Net profit for the year grew by 555.7% YoY.
  • Net profit margins during the year grew from 144.5% in FY21 to 672.5% in FY22.

INFO EDGE Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 11,280 15,890 40.9%
Other income Rs m 1,494 4,404 194.8%
Total Revenues Rs m 12,774 20,294 58.9%
Gross profit Rs m 17,204 116,207 575.4%
Depreciation Rs m 448 449 0.2%
Interest Rs m 109 114 5.2%
Profit before tax Rs m 18,142 120,048 561.7%
Tax Rs m 1,843 13,179 615.2%
Profit after tax Rs m 16,299 106,869 555.7%
Gross profit margin % 152.5 731.3
Effective tax rate % 10.2 11.0
Net profit margin % 144.5 672.5
* 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 FY22 stood at Rs 11 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 62.9%.
  • Long-term debt stood at Rs 6 million as compared to Rs 1 million during FY21, a growth of 800.0%.
  • Current assets rose 11% and stood at Rs 35 billion, while fixed assets rose 345% and stood at Rs 181 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 216 billion as against Rs 72 billion during FY21, thereby witnessing a growth of 199%.

INFO EDGE Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 53,461 171,405 220.6
 
Current Liabilities Rs m 7,026 11,444 62.9
Long-term Debt Rs m 1 6 800.0
Total Liabilities Rs m 72,092 215,525 199.0
 
Current assets Rs m 31,427 34,758 10.6
Fixed Assets Rs m 40,665 180,767 344.5
Total Assets Rs m 72,092 215,525 199.0
* 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 FY22 stood at Rs 7 billion, an improvement of 156.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -12 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 346 million on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -4 billion from the Rs 1 billion net cash flows seen during FY21.

INFO EDGE 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 2,757 7,068 156.4%
Cash Flow from Investing Activities Rs m -20,429 -11,765 -
Cash Flow from Financing Activities Rs m 18,804 346 -98.2%
Net Cash Flow Rs m 1,132 -4,351 -
* 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 830.3, an improvement from the EPS of Rs 126.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 4,312.8, stands at 5.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 34.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.0 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 87.8 123.5
TTM Earnings per share Rs 126.8 830.3
Diluted earnings per share Rs 126.4 828.5
Price to Cash Flow x 32.9 7.0
TTM P/E ratio x 34.0 5.2
Price / Book Value ratio x 9.4 4.4
Market Cap Rs m 501,948 748,764
Dividends per share (Unadj.) Rs 8.0 13.0
* 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 deteriorated and stood at 3.0x during FY22, from 4.5x 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 1,051.4x during FY22, from 168.0x 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 improved and stood at 62.3% during FY22, from 30.5% 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 improved and stood at 70.1% during FY22, from 34.1% 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 49.6% during FY22, from 22.8% 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 4.5 3.0
Debtors’ Days Days 2 7
Interest coverage x 168.0 1,051.4
Debt to equity ratio x 0.0 0.0
Return on assets % 22.8 49.6
Return on equity % 30.5 62.3
Return on capital employed % 34.1 70.1
* 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 down from Rs 5,389.9 to Rs 4,312.8, registering a loss of Rs 1,077.1 or around 20.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,386.3 (up 0.7%). Over the last one year it has moved down from 31,677.6 to 30,386.3, a loss of 1,291 points (down 4.1%).

Overall, the S&P BSE SENSEX is up 7.4% 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 5,592.7 per share. You can check out the latest share price performance of INFO EDGE here...

What was the revenue of INFO EDGE in FY22? How does it compare to earlier years?

The revenues of INFO EDGE stood at Rs 20,294 m in FY22, which was up 58.9% compared to Rs 12,774 m reported in FY21.

INFO EDGE's revenue has grown from Rs 10,770 m in FY18 to Rs 20,294 m in FY22.

Over the past 5 years, the revenue of INFO EDGE has grown at a CAGR of 17.2%.

What was the net profit of INFO EDGE in FY22? How does it compare to earlier years?

The net profit of INFO EDGE stood at Rs 106,869 m in FY22, which was up 555.7% compared to Rs 16,299 m reported in FY21.

This compares to a net profit of Rs 4,833 m in FY20 and a net profit of Rs 9,021 m in FY19.

Over the past 5 years, INFO EDGE net profit has grown at a CAGR of 110.4%.

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 FY22 and stood at Rs 7,068 m as compared to Rs 2,757 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -11,765 m as compared to Rs -20,429 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs 346 m as compared to Rs 18,804 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations2,5352,7573,5022,7577,068
From Investments-1,494-591970-20,429-11,765
From Financial Activity-748-781-1,43418,804346
Net Cashflow2931,3853,0381,132-4,351

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 731.3% in FY22 as against 152.5% in FY21.
  • Net profit margins grew from 144.5% in FY21 to 672.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)58.281.342.7152.5731.3
Net Profit Margin (%)55.278.436.8144.5672.5
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of INFO EDGE

 

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