INFOBEANS TECHNOLOGY 2023-24 Annual Report Analysis

Wed, 24 Jul

INFOBEANS TECHNOLOGY 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.

INFOBEANS TECHNOLOGY Income Statement Analysis

• Operating income during the year fell 4.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.8% in FY24 as against 18.4% in FY23.
• Depreciation charges decreased by 2.5% and finance costs decreased by 26.2% YoY, respectively.
• Other income grew by 12.6% YoY.
• Net profit for the year declined by 37.5% YoY.
• Net profit margins during the year declined from 9.3% in FY23 to 6.1% in FY24.

INFOBEANS TECHNOLOGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,853	3,685	-4.4%
Other income	Rs m	135	152	12.6%
Total Revenues	Rs m	3,988	3,838	-3.8%
Gross profit	Rs m	710	509	-28.4%
Depreciation	Rs m	301	294	-2.5%
Interest	Rs m	78	58	-26.2%
Profit before tax	Rs m	466	309	-33.6%
Tax	Rs m	107	84	-20.8%
Profit after tax	Rs m	360	225	-37.5%
Gross profit margin	%	18.4	13.8
Effective tax rate	%	22.8	27.3
Net profit margin	%	9.3	6.1

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INFOBEANS TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 625 million as compared to Rs 653 million in FY23, thereby witnessing an decrease of -4.2%.
• Current assets rose 13% and stood at Rs 2 billion, while fixed assets fell 20% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a fall of 4%.

INFOBEANS TECHNOLOGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,682	2,890	7.7
Current Liabilities	Rs m	653	625	-4.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,165	3,984	-4.3
Current assets	Rs m	1,964	2,219	13.0
Fixed Assets	Rs m	2,201	1,765	-19.8
Total Assets	Rs m	4,165	3,984	-4.3

INFOBEANS TECHNOLOGY Cash Flow Statement Analysis

• INFOBEANS TECHNOLOGY 's cash flow from operating activities (CFO) during FY24 stood at Rs 435 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -247 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -150 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 41 million from the Rs -78 million net cash flows seen during FY23.

INFOBEANS TECHNOLOGY 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	773	435	-43.7%
Cash Flow from Investing Activities	Rs m	-734	-247	-
Cash Flow from Financing Activities	Rs m	-139	-150	-
Net Cash Flow	Rs m	-78	41	-

Current Valuations for INFOBEANS TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.3, an decline from the EPS of Rs 14.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 448.0, stands at 40.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.5 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	158.9	151.7
TTM Earnings per share	Rs	14.8	9.3
Diluted earnings per share	Rs	14.8	9.2
Price to Cash Flow	x	16.6	21.5
TTM P/E ratio	x	30.5	40.8
Price / Book Value ratio	x	4.4	3.9
Market Cap	Rs m	11,859	11,152
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for INFOBEANS TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY24, from 3.0x 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 6.4x during FY24, from 7.0x 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 7.8% during FY24, from 13.4% 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 12.7% during FY24, from 20.3% 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 7.1% during FY24, from 10.5% 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	3.0	3.5
Debtors’ Days	Days	608	755
Interest coverage	x	7.0	6.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	7.1
Return on equity	%	13.4	7.8
Return on capital employed	%	20.3	12.7

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

INFOBEANS TECHNOLOGY Share Price Performance

Over the last one year, INFOBEANS TECHNOLOGY share price has moved down from Rs 491.7 to Rs 448.0, registering a loss of Rs 43.7 or around 8.9%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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