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CAPITAL INDIA FINANCE 2021-22 Annual Report Analysis

Thu, 31 Mar

CAPITAL INDIA FINANCE 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.

CAPITAL INDIA FINANCE Income Statement Analysis

• Operating income during the year rose 66.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.9% in FY22 as against 16.8% in FY21.
• Depreciation charges increased by 42.7% and finance costs increased by 110.9% YoY, respectively.
• Other income grew by 18316.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.9% in FY21 to 3.9% in FY22.

CAPITAL INDIA FINANCE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,184	5,299	66.4%
Other income	Rs m	0	22	18,316.7%
Total Revenues	Rs m	3,184	5,321	67.1%
Gross profit	Rs m	536	523	-2.5%
Depreciation	Rs m	147	209	42.7%
Interest	Rs m	243	511	110.9%
Profit before tax	Rs m	148	-176	NA
Tax	Rs m	87	31	-63.9%
Profit after tax	Rs m	61	-207	NA
Gross profit margin	%	16.8	9.9
Effective tax rate	%	58.8	-17.8
Net profit margin	%	1.9	-3.9

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CAPITAL INDIA FINANCE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 149.3%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY21, a fall of 0.0%.
• Current assets rose 56% and stood at Rs 15 billion, while fixed assets rose 62% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 16 billion as against Rs 10 billion during FY21, thereby witnessing a growth of 56%.

CAPITAL INDIA FINANCE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,613	6,148	9.5
Current Liabilities	Rs m	3,251	8,105	149.3
Long-term Debt	Rs m	1,219	1,219	0.0
Total Liabilities	Rs m	10,377	16,194	56.1
Current assets	Rs m	9,642	15,005	55.6
Fixed Assets	Rs m	735	1,189	61.7
Total Assets	Rs m	10,377	16,194	56.1

CAPITAL INDIA FINANCE Cash Flow Statement Analysis

• CAPITAL INDIA FINANCE's cash flow from operating activities (CFO) during FY22 stood at Rs -3 billion, an improvement of 351.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 26.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 billion, an improvement of 108% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 560 million from the Rs 741 million net cash flows seen during FY21.

CAPITAL INDIA FINANCE 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	-695	-3,134	-
Cash Flow from Investing Activities	Rs m	-874	-1,103	-
Cash Flow from Financing Activities	Rs m	2,310	4,798	107.7%
Net Cash Flow	Rs m	741	560	-24.4%

Current Valuations for CAPITAL INDIA FINANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.7, an decline from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 124.9, stands at -47.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4,111.4 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	41.0	68.2
TTM Earnings per share	Rs	0.8	-2.7
Diluted earnings per share	Rs	0.8	-2.7
Price to Cash Flow	x	54.3	4,111.4
TTM P/E ratio	x	185.0	-47.4
Price / Book Value ratio	x	1.7	1.4
Market Cap	Rs m	9,760	8,819
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for CAPITAL INDIA FINANCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY22, from 3.0x 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 deteriorated and stood at 0.7x during FY22, from 1.6x 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 declined and down at -3.4% during FY22, from 1.1% 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 declined and down at 4.6% during FY22, from 5.7% 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 declined and down at 1.9% during FY22, from 2.9% 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	3.0	1.9
Debtors’ Days	Days	78	65
Interest coverage	x	1.6	0.7
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.9	1.9
Return on equity	%	1.1	-3.4
Return on capital employed	%	5.7	4.6

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

CAPITAL INDIA FINANCE Share Price Performance

Over the last one year, CAPITAL INDIA FINANCE share price has moved down from Rs 144.8 to Rs 124.9, registering a loss of Rs 19.9 or around 13.7%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, check out historical annual results for CAPITAL INDIA FINANCE and quarterly results for CAPITAL INDIA FINANCE)