INFO EDGE Announces Quarterly Results (1QFY22); Net Profit Up 178.1%

Mon, 16 Aug

INFO EDGE has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

INFO EDGE Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	2,850	2,965	3,273	10.4%	14.8%
Other income	Rs m	238	628	529	-15.8%	121.8%
Turnover	Rs m	3,089	3,593	3,801	5.8%	23.1%
Expenses	Rs m	1,810	2,444	2,286	-6.5%	26.3%
Gross profit	Rs m	1,100	4,022	2,491	-38.1%	126.4%
Depreciation	Rs m	127	121	119	-2.0%	-6.7%
Interest	Rs m	16	14	13	-2.1%	-14.8%
Profit before tax	Rs m	1,196	4,515	2,888	-36.0%	141.5%
Tax	Rs m	292	1,189	375	-68.4%	28.4%
Profit after tax	Rs m	904	3,326	2,513	-24.5%	178.1%
Gross profit margin	%	38.6	135.6	76.1
Effective tax rate	%	24.4	26.3	13.0
Net profit margin	%	29.3	92.6	66.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 14.8% on a year-on-year (YoY) basis. The expenses were up by 26.3% YoY during the same period.
• The company's operating profit increased by 126.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 76.1% in 1QFY22 as against 38.6% in 1QFY21.
• Depreciation charges declined by 6.7% and finance costs declined by 14.8% YoY, respectively.
• Other income increased by 121.8% YoY during the quarter.
• Net profit for the quarter increased by 178.1% YoY. Net profit margins during the quarter increased from 29.3% in 1QFY21 to 66.1% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 10.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 6.5% QoQ during the same period.
• The company's operating profit declined by 38.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 76.1% in 1QFY22 as against 135.6% in 4QFY21.
• Net profit for the quarter declined by 24.5% QoQ, while net profit margins declined from 92.6% in 4QFY21 to 66.1% in 1QFY22.

To see how INFO EDGE has performed over the last eight quarters,please visit here.

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INFO EDGE Share Price Performance

Over the last one year, INFO EDGE share price has moved up from Rs 3,246.0 to Rs 5,445.1, registering a Gain of Rs 2,199.1 or around 67.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 32,885.5 (down 0.2%). Over the last one year it has moved up from 18,194.7 to 32,885.5, a gain of 14,691 points (up 80.7%).

Overall, the S&P BSE SENSEX is up 44.9% over the year.

Current Valuations

At the current price of Rs 5,445.1, the price to earnings (P/E) ratio of INFO EDGE stands at 39.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 13.0 times.