INTRASOFT TECHNOLOGIES 2021-22 Annual Report Analysis

Tue, 11 Oct

INTRASOFT TECHNOLOGIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

INTRASOFT TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 31.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.0% in FY22 as against 1.4% in FY21.
• Depreciation charges decreased by 51.2% and finance costs increased by 8.3% YoY, respectively.
• Other income declined by 24.7% YoY.
• Net profit for the year grew by 53.7% YoY.
• Net profit margins during the year grew from 1.4% in FY21 to 3.0% in FY22.

INTRASOFT TECHNOLOGIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	6,131	4,217	-31.2%
Other income	Rs m	64	48	-24.7%
Total Revenues	Rs m	6,195	4,264	-31.2%
Gross profit	Rs m	84	126	50.3%
Depreciation	Rs m	28	14	-51.2%
Interest	Rs m	33	35	8.3%
Profit before tax	Rs m	87	125	44.0%
Tax	Rs m	3	-3	NA
Profit after tax	Rs m	83	128	53.7%
Gross profit margin	%	1.4	3.0
Effective tax rate	%	3.9	-2.6
Net profit margin	%	1.4	3.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

INTRASOFT TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 394 million as compared to Rs 293 million in FY21, thereby witnessing an increase of 34.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 980 million during FY21, a growth of 14.9%.
• Current assets rose 2% and stood at Rs 2 billion, while fixed assets rose 55% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 18%.

INTRASOFT TECHNOLOGIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,535	1,666	8.6
Current Liabilities	Rs m	293	394	34.5
Long-term Debt	Rs m	980	1,127	14.9
Total Liabilities	Rs m	2,649	3,127	18.0
Current assets	Rs m	1,827	1,855	1.6
Fixed Assets	Rs m	822	1,272	54.6
Total Assets	Rs m	2,649	3,127	18.0

INTRASOFT TECHNOLOGIES Cash Flow Statement Analysis

• INTRASOFT TECHNOLOGIES's cash flow from operating activities (CFO) during FY22 stood at Rs 334 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -467 million, an improvement of 30.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 97 million, an improvement of 295% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -17 million from the Rs -74 million net cash flows seen during FY21.

INTRASOFT TECHNOLOGIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	350	334	-4.4%
Cash Flow from Investing Activities	Rs m	-359	-467	-
Cash Flow from Financing Activities	Rs m	-50	97	-
Net Cash Flow	Rs m	-74	-17	-

Current Valuations for INTRASOFT TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.7, an improvement from the EPS of Rs 5.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 149.9, stands at 19.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 16.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	416.2	286.3
TTM Earnings per share	Rs	5.7	8.7
Diluted earnings per share	Rs	5.7	8.7
Price to Cash Flow	x	8.8	16.8
TTM P/E ratio	x	11.8	19.1
Price / Book Value ratio	x	0.6	1.4
Market Cap	Rs m	902	2,387
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for INTRASOFT TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.7x during FY22, from 6.2x during FY21. 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 4.6x during FY22, from 3.7x during FY21. 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 7.7% during FY22, from 5.4% during FY22. 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 5.7% during FY22, from 4.7% during FY21. 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 5.2% during FY22, from 4.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	6.2	4.7
Debtors’ Days	Days	12	30
Interest coverage	x	3.7	4.6
Debt to equity ratio	x	0.6	0.7
Return on assets	%	4.4	5.2
Return on equity	%	5.4	7.7
Return on capital employed	%	4.7	5.7

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

INTRASOFT TECHNOLOGIES Share Price Performance

Over the last one year, INTRASOFT TECHNOLOGIES share price has moved up from Rs 146.1 to Rs 149.9, registering a gain of Rs 3.8 or around 2.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,167.6 (down 1.0%). Over the last one year it has moved down from 34,726.4 to 28,167.6, a loss of 6,559 points (down 18.9%).

Overall, the S&P BSE SENSEX is down 3.2% over the year.

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