INFO EDGE 2022-23 Annual Report Analysis

Thu, 10 Aug

INFO EDGE 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.

INFO EDGE Income Statement Analysis

• Operating income during the year rose 47.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 6.9% in FY23 as against 869.5% in FY22.
• Depreciation charges increased by 62.6% and finance costs increased by 60.5% YoY, respectively.
• Other income declined by 10.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 810.7% in FY22 to 3.0% in FY23.

INFO EDGE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,890	23,457	47.6%
Other income	Rs m	4,404	3,929	-10.8%
Total Revenues	Rs m	20,294	27,385	34.9%
Gross profit	Rs m	138,161	-1,609	NA
Depreciation	Rs m	449	730	62.6%
Interest	Rs m	114	183	60.5%
Profit before tax	Rs m	142,001	1,406	-99.0%
Tax	Rs m	13,179	2,111	-84.0%
Profit after tax	Rs m	128,822	-705	NA
Gross profit margin	%	869.5	-6.9
Effective tax rate	%	9.3	150.1
Net profit margin	%	810.7	-3.0

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INFO EDGE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 14 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 18.2%.
• Long-term debt stood at Rs 14 million as compared to Rs 6 million during FY22, a growth of 115.7%.
• Current assets rose 6% and stood at Rs 37 billion, while fixed assets fell 21% and stood at Rs 143 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 180 billion as against Rs 216 billion during FY22, thereby witnessing a fall of 17%.

INFO EDGE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	171,405	132,338	-22.8
Current Liabilities	Rs m	11,444	13,531	18.2
Long-term Debt	Rs m	6	14	115.7
Total Liabilities	Rs m	215,525	179,567	-16.7
Current assets	Rs m	34,758	36,948	6.3
Fixed Assets	Rs m	180,767	142,619	-21.1
Total Assets	Rs m	215,525	179,567	-16.7

INFO EDGE Cash Flow Statement Analysis

• INFO EDGE's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 20 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -4 billion net cash flows seen during FY22.

INFO EDGE 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	7,068	5,208	-26.3%
Cash Flow from Investing Activities	Rs m	-11,765	-3,666	-
Cash Flow from Financing Activities	Rs m	346	20	-94.3%
Net Cash Flow	Rs m	-4,351	1,561	-

Current Valuations for INFO EDGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an decline from the EPS of Rs 1,000.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,689.2, stands at 377.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 25.8 times.
• The company's price to cash flow (P/CF) ratio stood at 20,752.3 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	123.5	181.8
TTM Earnings per share	Rs	1,000.9	-5.5
Diluted earnings per share	Rs	997.2	-5.5
Price to Cash Flow	x	4.5	20,752.3
TTM P/E ratio	x	5.5	377.3
Price / Book Value ratio	x	4.4	4.0
Market Cap	Rs m	748,764	530,428
Dividends per share (Unadj.)	Rs	13.0	19.0

Ratio Analysis for INFO EDGE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY23, from 3.0x 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 8.7x during FY23, from 1,243.5x 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 -0.5% during FY23, from 75.2% 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 1.2% during FY23, from 82.9% 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 -0.3% during FY23, from 59.8% 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	3.0	2.7
Debtors’ Days	Days	7	2
Interest coverage	x	1,243.5	8.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	59.8	-0.3
Return on equity	%	75.2	-0.5
Return on capital employed	%	82.9	1.2

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 4,238.8 to Rs 4,689.2, registering a gain of Rs 450.4 or around 10.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 31,210.0 (up 0.3%). Over the last one year it has moved up from 30,097.9 to 31,210.0, a gain of 1,112 points (up 3.7%).

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)