IDEAFORGE TECHNOLOGY 2022-23 Annual Report Analysis

Sun, 9 Jul

IDEAFORGE TECHNOLOGY 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.

IDEAFORGE TECHNOLOGY Income Statement Analysis

• Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 35.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.8% in FY23 as against 46.8% in FY22.
• Depreciation charges increased by 62.8% and finance costs decreased by 69.6% YoY, respectively.
• Other income grew by 417.4% YoY.
• Net profit for the year declined by 27.3% YoY.
• Net profit margins during the year declined from 27.6% in FY22 to 17.2% in FY23.

IDEAFORGE TECHNOLOGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,594	1,860	16.7%
Other income	Rs m	20	104	417.4%
Total Revenues	Rs m	1,614	1,964	21.7%
Gross profit	Rs m	746	481	-35.5%
Depreciation	Rs m	73	119	62.8%
Interest	Rs m	191	58	-69.6%
Profit before tax	Rs m	502	408	-18.7%
Tax	Rs m	62	88	42.7%
Profit after tax	Rs m	440	320	-27.3%
Gross profit margin	%	46.8	25.8
Effective tax rate	%	12.3	21.6
Net profit margin	%	27.6	17.2

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IDEAFORGE TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 472 million in FY22, thereby witnessing an increase of 216.7%.
• Current assets rose 167% and stood at Rs 4 billion, while fixed assets rose 29% and stood at Rs 990 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 119%.

IDEAFORGE TECHNOLOGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,488	2,943	97.9
Current Liabilities	Rs m	472	1,494	216.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,204	4,827	119.0
Current assets	Rs m	1,436	3,837	167.2
Fixed Assets	Rs m	768	990	28.9
Total Assets	Rs m	2,204	4,827	119.0

IDEAFORGE TECHNOLOGY Cash Flow Statement Analysis

• IDEAFORGE TECHNOLOGY's cash flow from operating activities (CFO) during FY23 stood at Rs -532 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 384.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 1,762% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -259 million from the Rs 252 million net cash flows seen during FY22.

IDEAFORGE TECHNOLOGY 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	665	-532	-
Cash Flow from Investing Activities	Rs m	-308	-1,489	-
Cash Flow from Financing Activities	Rs m	-106	1,762	-
Net Cash Flow	Rs m	252	-259	-

Current Valuations for IDEAFORGE TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an decline from the EPS of Rs 4,889.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,295.5, stands at 168.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.3 times, while the price to sales ratio stands at 14.9 times.
• The company's price to cash flow (P/CF) ratio stood at 123.1 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	17,715.4	87.2
TTM Earnings per share	Rs	4,889.6	15.0
Diluted earnings per share	Rs	10.6	7.7
Price to Cash Flow	x	0.0	123.1
TTM P/E ratio	x	0.0	168.8
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	53,984
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IDEAFORGE TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x 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 improved and stood at 8.0x during FY23, from 3.6x 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 10.9% during FY23, from 29.6% 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 15.8% during FY23, from 46.6% 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 7.8% during FY23, from 28.6% 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	2.6
Debtors’ Days	Days	46	113
Interest coverage	x	3.6	8.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.6	7.8
Return on equity	%	29.6	10.9
Return on capital employed	%	46.6	15.8

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

IDEAFORGE TECHNOLOGY Share Price Performance

Over the last one year, IDEAFORGE TECHNOLOGY share price has moved up from Rs 0.0 to Rs 1,295.5, registering a gain of Rs 1,295.5 or around 0.0%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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