5PAISA CAPITAL 2022-23 Annual Report Analysis

Thu, 10 Aug

5PAISA CAPITAL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

5PAISA CAPITAL Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 88.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.5% in FY23 as against 15.4% in FY22.
• Depreciation charges increased by 74.9% and finance costs decreased by 10.8% YoY, respectively.
• Other income grew by 47.9% YoY.
• Net profit for the year grew by 217.2% YoY.
• Net profit margins during the year grew from 4.6% in FY22 to 12.9% in FY23.

5PAISA CAPITAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,970	3,379	13.8%
Other income	Rs m	10	15	47.9%
Total Revenues	Rs m	2,980	3,394	13.9%
Gross profit	Rs m	458	862	88.0%
Depreciation	Rs m	50	88	74.9%
Interest	Rs m	233	208	-10.8%
Profit before tax	Rs m	185	581	213.9%
Tax	Rs m	48	145	204.6%
Profit after tax	Rs m	137	436	217.2%
Gross profit margin	%	15.4	25.5
Effective tax rate	%	25.8	25.0
Net profit margin	%	4.6	12.9

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5PAISA CAPITAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 12 billion as compared to Rs 12 billion in FY22, thereby witnessing an decrease of -4.7%.
• Current assets rose 2% and stood at Rs 16 billion, while fixed assets fell 0% and stood at Rs 230 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 16 billion during FY22, thereby witnessing a growth of 2%.

5PAISA CAPITAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,525	4,561	29.4
Current Liabilities	Rs m	12,333	11,750	-4.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,954	16,346	2.5
Current assets	Rs m	15,723	16,116	2.5
Fixed Assets	Rs m	231	230	-0.4
Total Assets	Rs m	15,954	16,346	2.5

5PAISA CAPITAL Cash Flow Statement Analysis

• 5PAISA CAPITAL's cash flow from operating activities (CFO) during FY23 stood at Rs 246 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -81 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -850 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -685 million from the Rs 725 million net cash flows seen during FY22.

5PAISA CAPITAL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-1,406	246	-
Cash Flow from Investing Activities	Rs m	-120	-81	-
Cash Flow from Financing Activities	Rs m	2,252	-850	-
Net Cash Flow	Rs m	725	-685	-

Current Valuations for 5PAISA CAPITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.2, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 459.0, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 19.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	100.9	110.3
TTM Earnings per share	Rs	4.7	14.2
Diluted earnings per share	Rs	4.5	14.2
Price to Cash Flow	x	56.3	19.3
TTM P/E ratio	x	77.0	27.7
Price / Book Value ratio	x	3.5	2.2
Market Cap	Rs m	12,200	10,119
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for 5PAISA CAPITAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.3x during FY22. 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 3.8x during FY23, from 1.8x during FY22. 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 9.6% during FY23, from 3.9% during FY23. 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 17.3% during FY23, from 11.9% during FY22. 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 3.9% during FY23, from 2.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	0	0
Interest coverage	x	1.8	3.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.3	3.9
Return on equity	%	3.9	9.6
Return on capital employed	%	11.9	17.3

To see how 5PAISA CAPITAL has performed over the last 5 years, please visit here.

5PAISA CAPITAL Share Price Performance

Over the last one year, 5PAISA CAPITAL share price has moved up from Rs 279.6 to Rs 459.0, registering a gain of Rs 179.4 or around 64.2%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for 5PAISA CAPITAL and quarterly results for 5PAISA CAPITAL)