3I INFOTECH 2023-24 Annual Report Analysis

Mon, 21 Oct

3I INFOTECH 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.

3I INFOTECH Income Statement Analysis

• Operating income during the year rose 11.6% 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 stood at 36.8% in FY24 as against 6.0% in FY23.
• Depreciation charges increased by 19.1% and finance costs increased by 8.7% YoY, respectively.
• Other income declined by 33.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.2% in FY23 to 36.6% in FY24.

3I INFOTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,291	8,139	11.6%
Other income	Rs m	799	528	-33.9%
Total Revenues	Rs m	8,091	8,667	7.1%
Gross profit	Rs m	-435	-2,995	NA
Depreciation	Rs m	228	272	19.1%
Interest	Rs m	93	101	8.7%
Profit before tax	Rs m	44	-2,840	NA
Tax	Rs m	30	143	375.4%
Profit after tax	Rs m	14	-2,983	NA
Gross profit margin	%	-6.0	-36.8
Effective tax rate	%	68.7	-5.0
Net profit margin	%	0.2	-36.6

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3I INFOTECH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 21.3%.
• Current assets fell 7% and stood at Rs 3 billion, while fixed assets fell 46% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 10 billion during FY23, thereby witnessing a fall of 32%.

3I INFOTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,349	2,872	-54.8
Current Liabilities	Rs m	2,625	3,185	21.3
Long-term Debt	Rs m	2	0	-100.0
Total Liabilities	Rs m	9,699	6,634	-31.6
Current assets	Rs m	3,592	3,346	-6.8
Fixed Assets	Rs m	6,108	3,288	-46.2
Total Assets	Rs m	9,699	6,634	-31.6

3I INFOTECH Cash Flow Statement Analysis

• 3I INFOTECH's cash flow from operating activities (CFO) during FY24 stood at Rs 732 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -84 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -252 million, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -111 million from the Rs -672 million net cash flows seen during FY23.

3I INFOTECH 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	1,447	732	-49.5%
Cash Flow from Investing Activities	Rs m	-1,060	-84	-
Cash Flow from Financing Activities	Rs m	-412	-252	-
Net Cash Flow	Rs m	-672	-111	-

Current Valuations for 3I INFOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -17.6, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 28.2, stands at -1.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -2.9 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	43.3	48.1
TTM Earnings per share	Rs	0.1	-17.6
Diluted earnings per share	Rs	0.1	-17.6
Price to Cash Flow	x	19.3	-2.9
TTM P/E ratio	x	339.8	-1.6
Price / Book Value ratio	x	1.3	2.7
Market Cap	Rs m	8,460	7,734
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for 3I INFOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.4x 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 -27.1x during FY24, from 1.5x 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 -103.9% during FY24, from 0.2% 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 -95.4% during FY24, from 2.2% 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 declined and down at -43.4% during FY24, from 1.1% 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	1.4	1.1
Debtors’ Days	Days	7	7
Interest coverage	x	1.5	-27.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.1	-43.4
Return on equity	%	0.2	-103.9
Return on capital employed	%	2.2	-95.4

To see how 3I INFOTECH has performed over the last 5 years, please visit here.

3I INFOTECH Share Price Performance

Over the last one year, 3I INFOTECH share price has moved down from Rs 38.8 to Rs 28.2, registering a loss of Rs 10.6 or around 27.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,036.5 (down 0.8%). Over the last one year it has moved up from 31,940.1 to 42,036.5, a gain of 10,096 points (up 31.6%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for 3I INFOTECH and quarterly results for 3I INFOTECH)