INFOSYS 2021-22 Annual Report Analysis
Mon, 16 May

INFOSYS 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.

INFOSYS Income Statement Analysis

  • Operating income during the year rose 21.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 14.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.9% in FY22 as against 27.4% in FY21.
  • Depreciation charges increased by 6.4% and finance costs increased by 2.6% YoY, respectively.
  • Other income declined by 9.9% YoY.
  • Net profit for the year grew by 14.0% YoY.
  • Net profit margins during the year declined from 19.3% in FY21 to 18.2% in FY22.

INFOSYS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 1,004,720 1,216,410 21.1%
Other income Rs m 25,470 22,950 -9.9%
Total Revenues Rs m 1,030,190 1,239,360 20.3%
Gross profit Rs m 275,430 314,910 14.3%
Depreciation Rs m 32,670 34,760 6.4%
Interest Rs m 1,950 2,000 2.6%
Profit before tax Rs m 266,280 301,100 13.1%
Tax Rs m 72,050 79,640 10.5%
Profit after tax Rs m 194,230 221,460 14.0%
Gross profit margin % 27.4 25.9
Effective tax rate % 27.1 26.4
Net profit margin % 19.3 18.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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INFOSYS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 336 billion as compared to Rs 239 billion in FY21, thereby witnessing an increase of 40.8%.
  • Current assets rose 11% and stood at Rs 672 billion, while fixed assets rose 6% and stood at Rs 495 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 1,167 billion as against Rs 1,073 billion during FY21, thereby witnessing a growth of 9%.

INFOSYS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 759,790 747,440 -1.6
 
Current Liabilities Rs m 238,650 336,030 40.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 1,072,880 1,166,730 8.7
 
Current assets Rs m 607,330 671,850 10.6
Fixed Assets Rs m 465,550 494,880 6.3
Total Assets Rs m 1,072,880 1,166,730 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INFOSYS Cash Flow Statement Analysis

  • INFOSYS's cash flow from operating activities (CFO) during FY22 stood at Rs 239 billion, an improvement of 2.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -64 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -246 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -72 billion from the Rs 61 billion net cash flows seen during FY21.

INFOSYS 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 232,240 238,850 2.8%
Cash Flow from Investing Activities Rs m -74,560 -64,160 -
Cash Flow from Financing Activities Rs m -97,860 -246,420 -
Net Cash Flow Rs m 60,650 -72,420 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INFOSYS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.8, an improvement from the EPS of Rs 45.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,492.3, stands at 28.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 5.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.7 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 236.7 290.1
TTM Earnings per share Rs 45.8 52.8
Diluted earnings per share Rs 46.2 52.6
Price to Cash Flow x 25.4 26.7
TTM P/E ratio x 29.6 28.3
Price / Book Value ratio x 5.6 9.2
Market Cap Rs m 4,220,949 6,846,142
Dividends per share (Unadj.) Rs 27.0 31.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INFOSYS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.5x 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 151.6x during FY22, from 137.6x 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 29.6% during FY22, from 25.6% 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 40.6% during FY22, from 35.3% 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 19.2% during FY22, from 18.3% 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 2.5 2.0
Debtors’ Days Days 7 7
Interest coverage x 137.6 151.6
Debt to equity ratio x 0.0 0.0
Return on assets % 18.3 19.2
Return on equity % 25.6 29.6
Return on capital employed % 35.3 40.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

INFOSYS Share Price Performance

Over the last one year, INFOSYS share price has moved up from Rs 1,316.8 to Rs 1,492.3, registering a gain of Rs 175.5 or around 13.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,792.8 (down 0.6%). Over the last one year it has moved up from 26,131.6 to 29,792.8, a gain of 3,661 points (up 14.0%).

Overall, the S&P BSE SENSEX is up 8.8% over the year.

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

Annual Report FAQs

What is the current share price of INFOSYS?

INFOSYS currently trades at Rs 1,594.0 per share. You can check out the latest share price performance of INFOSYS here...

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

The revenues of INFOSYS stood at Rs 1,239,360 m in FY22, which was up 20.3% compared to Rs 1,030,190 m reported in FY21.

INFOSYS' revenue has grown from Rs 738,330 m in FY18 to Rs 1,239,360 m in FY22.

Over the past 5 years, the revenue of INFOSYS has grown at a CAGR of 13.8%.

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

The net profit of INFOSYS stood at Rs 221,460 m in FY22, which was up 14.0% compared to Rs 194,230 m reported in FY21.

This compares to a net profit of Rs 166,390 m in FY20 and a net profit of Rs 154,100 m in FY19.

Over the past 5 years, INFOSYS net profit has grown at a CAGR of 8.3%.

What does the cash flow statement of INFOSYS 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 INFOSYS reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 238,850 m as compared to Rs 232,240 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -64,160 m as compared to Rs -74,560 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -246,420 m as compared to Rs -97,860 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations132,180148,410170,030232,240238,850
From Investments44,520-5,750-2,390-74,560-64,160
From Financial Activity-205,050-145,120-175,910-97,860-246,420
Net Cashflow-27,540-3,030-9,19060,650-72,420

What does the Key Ratio analysis of INFOSYS 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 INFOSYS reveals:

  • Operating profit margins witnessed a fall and stood at 25.9% in FY22 as against 27.4% in FY21.
  • Net profit margins declined from 19.3% in FY21 to 18.2% 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 INFOSYS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)26.824.424.027.425.9
Net Profit Margin (%)22.818.618.319.318.2
Debt to Equity Ratio (x)0.00.00.00.00.0