HCL INFOSYS 2023-24 Annual Report Analysis

Tue, 27 Aug

HCL INFOSYS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HCL INFOSYS Income Statement Analysis

• Operating income during the year rose 2.4% 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 135.3% in FY24 as against 183.2% in FY23.
• Depreciation charges decreased by 7.1% and finance costs decreased by 61.0% YoY, respectively.
• Other income grew by 27.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 123.5% in FY23 to 49.3% in FY24.

HCL INFOSYS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	314	322	2.4%
Other income	Rs m	234	298	27.5%
Total Revenues	Rs m	548	620	13.1%
Gross profit	Rs m	-575	-435	NA
Depreciation	Rs m	6	5	-7.1%
Interest	Rs m	40	16	-61.0%
Profit before tax	Rs m	-387	-158	NA
Tax	Rs m	1	1	16.0%
Profit after tax	Rs m	-388	-159	NA
Gross profit margin	%	-183.2	-135.3
Effective tax rate	%	-0.1	-0.4
Net profit margin	%	-123.5	-49.3

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HCL INFOSYS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -4.6%.
• Current assets fell 29% and stood at Rs 2 billion, while fixed assets rose 12% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 6 billion during FY23, thereby witnessing a fall of 9%.

HCL INFOSYS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-2,535	-2,693	NA
Current Liabilities	Rs m	7,577	7,228	-4.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,542	5,040	-9.1
Current assets	Rs m	2,873	2,054	-28.5
Fixed Assets	Rs m	2,669	2,987	11.9
Total Assets	Rs m	5,542	5,040	-9.1

HCL INFOSYS Cash Flow Statement Analysis

• HCL INFOSYS's cash flow from operating activities (CFO) during FY24 stood at Rs -362 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 308 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -57 million from the Rs -21 million net cash flows seen during FY23.

HCL INFOSYS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	736	-362	-
Cash Flow from Investing Activities	Rs m	-152	308	-
Cash Flow from Financing Activities	Rs m	-619	-4	-
Net Cash Flow	Rs m	-21	-57	-

Current Valuations for HCL INFOSYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, an improvement from the EPS of Rs -1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.5, stands at -38.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -2.0 times, while the price to sales ratio stands at 16.9 times.
• The company's price to cash flow (P/CF) ratio stood at -41.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	1.0	1.0
TTM Earnings per share	Rs	-1.2	-0.5
Diluted earnings per share	Rs	-1.2	-0.5
Price to Cash Flow	x	-10.3	-41.6
TTM P/E ratio	x	-10.2	-38.5
Price / Book Value ratio	x	-2.1	-2.4
Market Cap	Rs m	5,253	6,372
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HCL INFOSYS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY24, from 0.4x during FY23. 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 -9.1x during FY24, from -8.7x during FY23. 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 5.9% during FY24, from 15.3% during FY24. 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 5.3% during FY24, from 13.7% during FY23. 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 -2.8% during FY24, from -6.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.4	0.3
Debtors’ Days	Days	2,952	2,097
Interest coverage	x	-8.7	-9.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-6.3	-2.8
Return on equity	%	15.3	5.9
Return on capital employed	%	13.7	5.3

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

HCL INFOSYS Share Price Performance

Over the last one year, HCL INFOSYS share price has moved down from Rs 17.9 to Rs 16.5, registering a loss of Rs 1.4 or around 7.9%.

Overall, the S&P BSE SENSEX is up 24.9% over the year.

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