INFOSYS 2023-24 Annual Report Analysis

Fri, 19 Apr

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.

INFOSYS Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.7% in FY24 as against 23.5% in FY23.
• Depreciation charges increased by 10.7% and finance costs increased by 65.5% YoY, respectively.
• Other income grew by 40.7% YoY.
• Net profit for the year grew by 8.9% YoY.
• Net profit margins during the year grew from 16.4% in FY23 to 17.1% in FY24.

INFOSYS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,467,670	1,536,700	4.7%
Other income	Rs m	33,480	47,110	40.7%
Total Revenues	Rs m	1,501,150	1,583,810	5.5%
Gross profit	Rs m	344,830	364,250	5.6%
Depreciation	Rs m	42,250	46,780	10.7%
Interest	Rs m	2,840	4,700	65.5%
Profit before tax	Rs m	333,220	359,880	8.0%
Tax	Rs m	92,140	97,400	5.7%
Profit after tax	Rs m	241,080	262,480	8.9%
Gross profit margin	%	23.5	23.7
Effective tax rate	%	27.7	27.1
Net profit margin	%	16.4	17.1

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INFOSYS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 388 billion as compared to Rs 392 billion in FY23, thereby witnessing an decrease of -1.0%.
• Current assets rose 26% and stood at Rs 894 billion, while fixed assets fell 11% and stood at Rs 479 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,374 billion as against Rs 1,246 billion during FY23, thereby witnessing a growth of 10%.

INFOSYS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	745,290	872,030	17.0
Current Liabilities	Rs m	391,860	387,940	-1.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,245,710	1,373,600	10.3
Current assets	Rs m	708,810	894,320	26.2
Fixed Assets	Rs m	536,900	479,280	-10.7
Total Assets	Rs m	1,245,710	1,373,600	10.3

INFOSYS Cash Flow Statement Analysis

• INFOSYS's cash flow from operating activities (CFO) during FY24 stood at Rs 252 billion, an improvement of 12.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -50 billion, an improvement of 314.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -175 billion, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 26 billion from the Rs -53 billion net cash flows seen during FY23.

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	224,670	252,100	12.2%
Cash Flow from Investing Activities	Rs m	-12,090	-50,090	-
Cash Flow from Financing Activities	Rs m	-266,950	-175,040	-
Net Cash Flow	Rs m	-52,990	26,130	-

Current Valuations for INFOSYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.4, an improvement from the EPS of Rs 58.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,400.0, stands at 22.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	354.8	371.2
TTM Earnings per share	Rs	58.3	63.4
Diluted earnings per share	Rs	58.1	63.2
Price to Cash Flow	x	20.9	19.7
TTM P/E ratio	x	24.6	22.1
Price / Book Value ratio	x	9.1	7.0
Market Cap	Rs m	6,753,584	6,099,079
Dividends per share (Unadj.)	Rs	34.0	46.0

Ratio Analysis for INFOSYS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 1.8x 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 77.6x during FY24, from 118.3x 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 30.1% during FY24, from 32.3% 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 41.8% during FY24, from 45.1% 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 19.5% during FY24, from 19.6% 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	1.8	2.3
Debtors’ Days	Days	6	7
Interest coverage	x	118.3	77.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.6	19.5
Return on equity	%	32.3	30.1
Return on capital employed	%	45.1	41.8

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

INFOSYS Share Price Performance

Over the last one year, INFOSYS share price has moved up from Rs 1,232.2 to Rs 1,400.0, registering a gain of Rs 167.8 or around 13.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 34,333.3 (down 0.2%). Over the last one year it has moved up from 26,562.6 to 34,333.3, a gain of 7,771 points (up 29.3%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

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