ICRA 2019-20 Annual Report Analysis
Tue, 1 Dec

ICRA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ICRA Income Statement Analysis

  • Operating income during the year fell 2.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.8% in FY20 as against 34.4% in FY19.
  • Depreciation charges increased by 83.1% and finance costs increased by 2814.3% YoY, respectively.
  • Other income grew by 7.1% YoY.
  • Net profit for the year declined by 8.2% YoY.
  • Net profit margins during the year declined from 28.4% in FY19 to 26.3% in FY20.

ICRA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 3,281 3,211 -2.1%
Other income Rs m 448 480 7.1%
Total Revenues Rs m 3,729 3,691 -1.0%
Gross profit Rs m 1,129 958 -15.1%
Depreciation Rs m 56 103 83.1%
Interest Rs m 1 20 2,814.3%
Profit before tax Rs m 1,520 1,315 -13.5%
Tax Rs m 461 342 -25.7%
Profit after tax Rs m 1,060 972 -8.2%
Gross profit margin % 34.4 29.8
Effective tax rate % 30.3 26.0
Net profit margin % 28.4 26.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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ICRA Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 1 billion as compared to Rs 1 billion in FY19, thereby witnessing an decrease of -3.0%.
  • Current assets rose 28% and stood at Rs 7 billion, while fixed assets rose 60% and stood at Rs 565 million in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 8 billion as against Rs 8 billion during FY19, thereby witnessing a growth of 10%.

ICRA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 6,379 7,016 10.0
 
Current Liabilities Rs m 1,186 1,150 -3.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,687 8,455 10.0
 
Current assets Rs m 5,637 7,202 27.8
Fixed Assets Rs m 352 565 60.4
Total Assets Rs m 7,687 8,455 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ICRA Cash Flow Statement Analysis

  • ICRA's cash flow from operating activities (CFO) during FY20 stood at Rs 213 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 112 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -407 million, an improvement of 66% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -82 million from the Rs 46 million net cash flows seen during FY19.

ICRA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 809 213 -73.6%
Cash Flow from Investing Activities Rs m 447 112 -75.1%
Cash Flow from Financing Activities Rs m -1,209 -407 -
Net Cash Flow Rs m 46 -82 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ICRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 100.8, an decline from the EPS of Rs 109.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,670.0, stands at 30.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 8.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 340.0 332.7
TTM Earnings per share Rs 109.8 100.8
Diluted earnings per share Rs 109.8 100.8
Price to Cash Flow x 23.1 24.0
TTM P/E ratio x 30.9 30.9
Price / Book Value ratio x 5.1 3.6
Market Cap Rs m 25,766 25,766
Dividends per share (Unadj.) Rs 30.0 27.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ICRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 6.3x during FY20, from 4.8x during FY19. 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 65.5x during FY20, from 2,173.0x during FY19. 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 13.9% during FY20, from 16.6% during FY20. 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 19.0% during FY20, from 23.8% during FY19. 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 11.7% during FY20, from 13.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 4.8 6.3
Debtors’ Days Days 38 65
Interest coverage x 2,173.0 65.5
Debt to equity ratio x 0.0 0.0
Return on assets % 13.8 11.7
Return on equity % 16.6 13.9
Return on capital employed % 23.8 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ICRA Share Price Performance

Over the last one year, ICRA share price has moved down from Rs 2,804.8 to Rs 2,670.0, registering a loss of Rs 134.8 or around 4.8%.

Overall, the S&P BSE SENSEX is up 9.1% over the year.

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