IRB INVIT FUND 2023-24 Annual Report Analysis

Wed, 3 Jul

IRB INVIT FUND 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 INVIT FUND Income Statement Analysis

• Operating income during the year fell 26.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 81.2% in FY24 as against 56.0% in FY23.
• Depreciation charges decreased by 12.2% and finance costs increased by 41.3% YoY, respectively.
• Other income grew by 18.5% YoY.
• Net profit for the year grew by 1.0% YoY.
• Net profit margins during the year grew from 25.6% in FY23 to 35.1% in FY24.

IRB INVIT FUND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,417	10,621	-26.3%
Other income	Rs m	201	238	18.5%
Total Revenues	Rs m	14,618	10,859	-25.7%
Gross profit	Rs m	8,078	8,623	6.7%
Depreciation	Rs m	2,613	2,295	-12.2%
Interest	Rs m	1,926	2,722	41.3%
Profit before tax	Rs m	3,739	3,843	2.8%
Tax	Rs m	44	112	157.8%
Profit after tax	Rs m	3,696	3,731	1.0%
Gross profit margin	%	56.0	81.2
Effective tax rate	%	1.2	2.9
Net profit margin	%	25.6	35.1

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IRB INVIT FUND Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 88.0%.
• Long-term debt stood at Rs 29 billion as compared to Rs 29 billion during FY23, a growth of 0.3%.
• Current assets rose 47% and stood at Rs 10 billion, while fixed assets fell 2% and stood at Rs 116 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 126 billion as against Rs 125 billion during FY23, thereby witnessing a growth of 0%.

IRB INVIT FUND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	40,063	39,150	-2.3
Current Liabilities	Rs m	5,188	9,754	88.0
Long-term Debt	Rs m	29,294	29,370	0.3
Total Liabilities	Rs m	125,239	125,739	0.4
Current assets	Rs m	6,655	9,800	47.2
Fixed Assets	Rs m	118,584	115,940	-2.2
Total Assets	Rs m	125,239	125,739	0.4

IRB INVIT FUND Cash Flow Statement Analysis

• IRB INVIT FUND's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 22.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 174 million from the Rs 89 million net cash flows seen during FY23.

IRB INVIT FUND 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	8,091	9,872	22.0%
Cash Flow from Investing Activities	Rs m	-2,839	-1,861	-
Cash Flow from Financing Activities	Rs m	-5,162	-7,838	-
Net Cash Flow	Rs m	89	174	94.6%

Current Valuations for IRB INVIT FUND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an improvement from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 66.2, stands at 18.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.8 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	24.8	18.3
TTM Earnings per share	Rs	6.4	6.4
Diluted earnings per share	Rs	6.4	6.4
Price to Cash Flow	x	6.2	6.8
TTM P/E ratio	x	18.5	18.1
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	36,252	40,850
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IRB INVIT FUND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.3x 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 2.4x during FY24, from 2.9x 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 improved and stood at 9.5% during FY24, from 9.2% 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 improved and stood at 9.6% during FY24, from 8.2% 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 improved and stood at 5.1% during FY24, from 4.5% 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	1.3	1.0
Debtors’ Days	Days	0	0
Interest coverage	x	2.9	2.4
Debt to equity ratio	x	0.7	0.8
Return on assets	%	4.5	5.1
Return on equity	%	9.2	9.5
Return on capital employed	%	8.2	9.6

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

IRB INVIT FUND Share Price Performance

Over the last one year, IRB INVIT FUND share price has moved down from Rs 71.4 to Rs 66.2, registering a loss of Rs 5.1 or around 7.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,687.9 (up 0.1%). Over the last one year it has moved up from 4,196.4 to 8,687.9, a gain of 4,491 points (up 107.0%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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