Joy in Indra’s results, though without a good reward…

Indra published to publish on the 27th afternoon at the close of the market its first-half 2022 results. Good news, because the group has greatly improved its results obtained during this last semester compared to the same period of 2021. This morning, on the trading floor, its price appeared with an intraday increase of 1.57%, reaching 9.065 euros, but it quickly turned around to fall 1.99% within a Ibex 35 also in red (-1.31%), and later 4.4%,… within a selective perhaps too infected by the fact of the fed raised interest rates by 0.75 points for the second time in two months.

Indra’s result for the first half was 66 million euros (€M), an amount higher than a year ago (€55 M), representing a percentage increase of 19 .9% between the two periods. The group attributes this higher result to the strong increase it achieved in the clear contracting of its serviceswhich rose from €1,849 million to €2,326 million, an increase of 25.8% over one year.

The group attributes the highest result to the huge increase it obtained from the net contracting of its services, which rose from €1,849 million to €2,326 million, an increase of 25.8% over a year.

The billing of the group he chairs Marc Murtra and control the CALM (i.e. the state, which I would consider a possible room), operating profit increased by 11.6% in the first half, rising from €1,618 million to €1,805 million. A significant percentage increase, but less than the net income figure in the same comparison.

In relation to the group’s ability to generate resources, analyzed through the indicator EBITDA, this figure increased to a greater extent than its turnover, comparatively, indicating the good management of expenses by the group during this past half-year. Ebitda for this first half reached €174m, which represents an increase of 19.5% compared to the same figure a year ago, which was €146m. In other words, as we said, the management of the group’s operating expenses in the first half of 2022 was better than that of the same period in 2021, since recurring expenses increased, in percentage, to a lesser extent. than what was recognized in the income item.

As we progress in the various items that make up the group’s result, the positive differences compared to the first half of 2021 are accentuated. The EBIT, EBITDA after discounting amortization and depreciation is €22.6 million higher than a year ago, or 22.5% more. In the same way, although in a higher percentage, this happened with the result of the group before taxes, which was higher by €20.3 million, going from €80.1 million to €100.4 million. , which translates into an increase in relative terms of 25.3%.

Net debt fell from €546.1 million to €209.8 million, a drop of €336.3 million in absolute value and 61.58% in relative value. And he increased his free cash flow to a positive figure of €24m

Finally, let’s analyze the group’s net debt and liquidity. The net debt final of Indra, debt minus cash, has continued its downward trajectory since 2021. The group’s net debt fell from €546.1 million to €209.8 million, i.e. a reduction in absolute value of €336.3 million and of 61 .58% in relative terms. In addition, the group increased its free movement of capital, cash once all its obligations towards its creditors and shareholders have been satisfied, within the limit of a positive figure of €24 million. We know that the figure is not very high a priori, but it is if we take into account that in the first half of 2021, said figure was negative at €49.8 million. The good free cash flow obtained during the half-year is mainly due to a decrease of €158.2 million in departures from cash for commercial and other debtors. In the rest of the items, no significant difference was observed.

Conclusion: Indra’s first-half results bring good news, but what is of most interest is the scandal of the departure of several independent directors, which has damaged the company’s reputation. As a request to the group, next time we need a cash flow statement detail from your income statement please. After analyzing his results, we don’t know what many of the items included in the various cash flows are attributed to and that, in my humble opinion, is inexcusable.

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