IRB INFRA 2023-24 Annual Report Analysis

Mon, 2 Sep

IRB INFRA 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.

IRB INFRA Income Statement Analysis

• Operating income during the year rose 15.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 40.8% in FY24 as against 48.9% in FY23.
• Depreciation charges increased by 19.6% and finance costs increased by 22.8% YoY, respectively.
• Other income grew by 162.8% YoY.
• Net profit for the year declined by 15.9% YoY.
• Net profit margins during the year declined from 11.2% in FY23 to 8.2% in FY24.

IRB INFRA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	64,016	74,090	15.7%
Other income	Rs m	3,017	7,928	162.8%
Total Revenues	Rs m	67,033	82,018	22.4%
Gross profit	Rs m	31,286	30,219	-3.4%
Depreciation	Rs m	8,321	9,949	19.6%
Interest	Rs m	15,212	18,682	22.8%
Profit before tax	Rs m	10,770	9,514	-11.7%
Tax	Rs m	3,569	3,456	-3.2%
Profit after tax	Rs m	7,200	6,058	-15.9%
Gross profit margin	%	48.9	40.8
Effective tax rate	%	33.1	36.3
Net profit margin	%	11.2	8.2

Don't Miss: Key Information for Long-term Investors

IRB INFRA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 43 billion as compared to Rs 45 billion in FY23, thereby witnessing an decrease of -6.4%.
• Long-term debt stood at Rs 156 billion as compared to Rs 133 billion during FY23, a growth of 17.5%.
• Current assets fell 28% and stood at Rs 52 billion, while fixed assets rose 12% and stood at Rs 400 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 452 billion as against Rs 429 billion during FY23, thereby witnessing a growth of 5%.

IRB INFRA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	133,789	137,445	2.7
Current Liabilities	Rs m	45,446	42,543	-6.4
Long-term Debt	Rs m	132,981	156,300	17.5
Total Liabilities	Rs m	429,426	452,146	5.3
Current assets	Rs m	72,052	51,845	-28.0
Fixed Assets	Rs m	357,374	400,301	12.0
Total Assets	Rs m	429,426	452,146	5.3

IRB INFRA Cash Flow Statement Analysis

• IRB INFRA's cash flow from operating activities (CFO) during FY24 stood at Rs 41 billion, an improvement of 129.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -36 billion, an improvement of 460.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -679 million from the Rs 3 billion net cash flows seen during FY23.

IRB INFRA 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	17,641	40,538	129.8%
Cash Flow from Investing Activities	Rs m	-6,503	-36,445	-
Cash Flow from Financing Activities	Rs m	-8,605	-4,772	-
Net Cash Flow	Rs m	2,533	-679	-

Current Valuations for IRB INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 63.4, stands at 41.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.3 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	10.6	12.3
TTM Earnings per share	Rs	1.2	1.0
Diluted earnings per share	Rs	1.2	1.0
Price to Cash Flow	x	9.8	18.3
TTM P/E ratio	x	18.3	41.3
Price / Book Value ratio	x	1.2	2.1
Market Cap	Rs m	159,774	292,197
Dividends per share (Unadj.)	Rs	0.2	0.3

Ratio Analysis for IRB INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.6x 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 1.5x during FY24, from 1.7x 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 4.4% during FY24, from 5.4% 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 9.6% during FY24, from 9.7% 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 5.5% during FY24, from 5.2% 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	1.6	1.2
Debtors’ Days	Days	93	37
Interest coverage	x	1.7	1.5
Debt to equity ratio	x	1.0	1.1
Return on assets	%	5.2	5.5
Return on equity	%	5.4	4.4
Return on capital employed	%	9.7	9.6

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

IRB INFRA Share Price Performance

Over the last one year, IRB INFRA share price has moved up from Rs 30.4 to Rs 63.4, registering a gain of Rs 33.0 or around 108.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,232.2 (down 0.0%). Over the last one year it has moved up from 4,511.3 to 8,232.2, a gain of 3,721 points (up 82.5%).

Overall, the S&P BSE SENSEX is up 26.9% over the year.

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