IRIS BUSINESS SERVICES 2023-24 Annual Report Analysis

Mon, 29 Jul

IRIS BUSINESS SERVICES 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.

IRIS BUSINESS SERVICES Income Statement Analysis

• Operating income during the year rose 39.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.9% in FY24 as against 13.0% in FY23.
• Depreciation charges decreased by 4.0% and finance costs increased by 12.6% YoY, respectively.
• Other income declined by 50.5% YoY.
• Net profit for the year grew by 105.1% YoY.
• Net profit margins during the year grew from 5.8% in FY23 to 8.6% in FY24.

IRIS BUSINESS SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	736	1,023	39.0%
Other income	Rs m	13	7	-50.5%
Total Revenues	Rs m	749	1,030	37.5%
Gross profit	Rs m	96	152	58.6%
Depreciation	Rs m	47	45	-4.0%
Interest	Rs m	10	11	12.6%
Profit before tax	Rs m	52	102	96.3%
Tax	Rs m	9	14	55.3%
Profit after tax	Rs m	43	88	105.1%
Gross profit margin	%	13.0	14.9
Effective tax rate	%	17.6	13.9
Net profit margin	%	5.8	8.6

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

IRIS BUSINESS SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 288 million as compared to Rs 327 million in FY23, thereby witnessing an decrease of -11.9%.
• Current assets rose 10% and stood at Rs 597 million, while fixed assets rose 3% and stood at Rs 161 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 758 million as against Rs 701 million during FY23, thereby witnessing a growth of 8%.

IRIS BUSINESS SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	311	398	28.0
Current Liabilities	Rs m	327	288	-11.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	701	758	8.1
Current assets	Rs m	545	597	9.6
Fixed Assets	Rs m	156	161	3.0
Total Assets	Rs m	701	758	8.1

IRIS BUSINESS SERVICES Cash Flow Statement Analysis

• IRIS BUSINESS SERVICES 's cash flow from operating activities (CFO) during FY24 stood at Rs 117 million, an improvement of 104.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -33 million, an improvement of 72.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -13 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 71 million from the Rs 21 million net cash flows seen during FY23.

IRIS BUSINESS SERVICES 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	57	117	104.9%
Cash Flow from Investing Activities	Rs m	-19	-33	-
Cash Flow from Financing Activities	Rs m	-17	-13	-
Net Cash Flow	Rs m	21	71	239.5%

Current Valuations for IRIS BUSINESS SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 286.0, stands at 64.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.3 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.7 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	38.0	52.8
TTM Earnings per share	Rs	2.2	4.5
Diluted earnings per share	Rs	2.2	4.4
Price to Cash Flow	x	15.6	16.7
TTM P/E ratio	x	32.8	64.8
Price / Book Value ratio	x	5.7	5.6
Market Cap	Rs m	1,764	2,224
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IRIS BUSINESS SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.7x 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 improved and stood at 9.9x during FY24, from 6.1x 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 22.1% during FY24, from 13.8% 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 28.5% during FY24, from 20.0% 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 13.1% during FY24, from 7.6% 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	1.7	2.1
Debtors’ Days	Days	123,217	79,626
Interest coverage	x	6.1	9.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	13.1
Return on equity	%	13.8	22.1
Return on capital employed	%	20.0	28.5

To see how IRIS BUSINESS SERVICES has performed over the last 5 years, please visit here.

IRIS BUSINESS SERVICES Share Price Performance

Over the last one year, IRIS BUSINESS SERVICES share price has moved up from Rs 101.0 to Rs 286.0, registering a gain of Rs 185.0 or around 183.3%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for IRIS BUSINESS SERVICES and quarterly results for IRIS BUSINESS SERVICES )