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IL&FS ENGINEERING 2022-23 Annual Report Analysis

Tue, 31 Oct

IL&FS ENGINEERING 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.

IL&FS ENGINEERING Income Statement Analysis

• Operating income during the year fell 42.4% 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 down at 73.0% in FY23 as against 129.3% in FY22.
• Depreciation charges decreased by 24.9% and finance costs decreased by 49.8% YoY, respectively.
• Other income declined by 45.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 125.6% in FY22 to 70.0% in FY23.

IL&FS ENGINEERING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,076	1,771	-42.4%
Other income	Rs m	710	386	-45.7%
Total Revenues	Rs m	3,787	2,157	-43.1%
Gross profit	Rs m	-3,978	-1,293	NA
Depreciation	Rs m	136	102	-24.9%
Interest	Rs m	460	231	-49.8%
Profit before tax	Rs m	-3,864	-1,240	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-3,864	-1,240	NA
Gross profit margin	%	-129.3	-73.0
Effective tax rate	%	0.0	0.0
Net profit margin	%	-125.6	-70.0

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IL&FS ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 45 billion as compared to Rs 46 billion in FY22, thereby witnessing an decrease of -2.6%.
• Current assets fell 19% and stood at Rs 7 billion, while fixed assets rose 8% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 18 billion as against Rs 19 billion during FY22, thereby witnessing a fall of 5%.

IL&FS ENGINEERING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-28,744	-31,066	NA
Current Liabilities	Rs m	46,224	45,005	-2.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,162	18,262	-4.7
Current assets	Rs m	8,793	7,087	-19.4
Fixed Assets	Rs m	10,369	11,175	7.8
Total Assets	Rs m	19,162	18,262	-4.7

IL&FS ENGINEERING Cash Flow Statement Analysis

• IL&FS ENGINEERING's cash flow from operating activities (CFO) during FY23 stood at Rs 78 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 548 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -192 million, an improvement of 59% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 434 million from the Rs 370 million net cash flows seen during FY22.

IL&FS ENGINEERING 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	975	78	-92.0%
Cash Flow from Investing Activities	Rs m	-139	548	-
Cash Flow from Financing Activities	Rs m	-466	-192	-
Net Cash Flow	Rs m	370	434	17.2%

Current Valuations for IL&FS ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.5, an improvement from the EPS of Rs -29.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22.2, stands at -2.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at -1.8 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	23.5	13.5
TTM Earnings per share	Rs	-29.5	-9.5
Diluted earnings per share	Rs	-29.5	-9.5
Price to Cash Flow	x	-0.4	-1.8
TTM P/E ratio	x	-0.4	-2.2
Price / Book Value ratio	x	-0.1	-0.1
Market Cap	Rs m	1,630	2,002
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IL&FS ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY23, from 0.2x 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 -4.4x during FY23, from -7.4x 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 4.0% during FY23, from 13.4% 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 3.2% during FY23, from 11.8% 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 improved and stood at -5.5% during FY23, from -17.8% 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	0.2	0.2
Debtors’ Days	Days	9	15
Interest coverage	x	-7.4	-4.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-17.8	-5.5
Return on equity	%	13.4	4.0
Return on capital employed	%	11.8	3.2

To see how IL&FS ENGINEERING has performed over the last 5 years, please visit here.

IL&FS ENGINEERING Share Price Performance

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(To know more, check out historical annual results for IL&FS ENGINEERING and quarterly results for IL&FS ENGINEERING)