CAPACITE INFRAPROJECTS 2020-21 Annual Report Analysis

Wed, 31 Mar

CAPACITE INFRAPROJECTS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

CAPACITE INFRAPROJECTS Income Statement Analysis

• Operating income during the year fell 42.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 46.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.5% in FY21 as against 16.8% in FY20.
• Depreciation charges decreased by 21.0% and finance costs increased by 8.9% YoY, respectively.
• Other income grew by 13.4% YoY.
• Net profit for the year declined by 98.1% YoY.
• Net profit margins during the year declined from 6.0% in FY20 to 0.2% in FY21.

CAPACITE INFRAPROJECTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	15,290	8,797	-42.5%
Other income	Rs m	254	288	13.4%
Total Revenues	Rs m	15,544	9,085	-41.6%
Gross profit	Rs m	2,567	1,365	-46.8%
Depreciation	Rs m	1,142	902	-21.0%
Interest	Rs m	645	703	8.9%
Profit before tax	Rs m	1,034	48	-95.3%
Tax	Rs m	123	30	-75.3%
Profit after tax	Rs m	911	18	-98.1%
Gross profit margin	%	16.8	15.5
Effective tax rate	%	11.9	63.2
Net profit margin	%	6.0	0.2

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CAPACITE INFRAPROJECTS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 10 billion in FY20, thereby witnessing an decrease of -6.0%.
• Long-term debt down at Rs 823 million as compared to Rs 935 million during FY20, a fall of 12.0%.
• Current assets fell 13% and stood at Rs 13 billion, while fixed assets rose 6% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 24 billion as against Rs 25 billion during FY20, thereby witnessing a fall of 5%.

CAPACITE INFRAPROJECTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,259	9,288	0.3
Current Liabilities	Rs m	9,889	9,292	-6.0
Long-term Debt	Rs m	935	823	-12.0
Total Liabilities	Rs m	25,003	23,777	-4.9
Current assets	Rs m	14,521	12,659	-12.8
Fixed Assets	Rs m	10,481	11,118	6.1
Total Assets	Rs m	25,003	23,777	-4.9

CAPACITE INFRAPROJECTS Cash Flow Statement Analysis

• CAPACITE INFRAPROJECTS's cash flow from operating activities (CFO) during FY21 stood at Rs 770 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -527 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -978 million from the Rs 777 million net cash flows seen during FY20.

CAPACITE INFRAPROJECTS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	3,575	770	-78.5%
Cash Flow from Investing Activities	Rs m	-2,769	-1,221	-
Cash Flow from Financing Activities	Rs m	-28	-527	-
Net Cash Flow	Rs m	777	-978	-

Current Valuations for CAPACITE INFRAPROJECTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 201.4, stands at 770.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	225.2	129.6
TTM Earnings per share	Rs	13.4	0.3
Diluted earnings per share	Rs	13.4	0.3
Price to Cash Flow	x	2.4	11.1
TTM P/E ratio	x	5.4	770.1
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	12,428	10,185
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CAPACITE INFRAPROJECTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY21, from 1.5x during FY20. 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 1.1x during FY21, from 2.6x during FY20. 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 0.2% during FY21, from 9.8% during FY21. 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 7.4% during FY21, from 16.5% during FY20. 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 3.0% during FY21, from 6.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	920	1,186
Interest coverage	x	2.6	1.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.2	3.0
Return on equity	%	9.8	0.2
Return on capital employed	%	16.5	7.4

To see how CAPACITE INFRAPROJECTS has performed over the last 5 years, please visit here.

CAPACITE INFRAPROJECTS Share Price Performance

Over the last one year, CAPACITE INFRAPROJECTS share price has moved up from Rs 72.7 to Rs 201.4, registering a gain of Rs 128.7 or around 177.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for CAPACITE INFRAPROJECTS and quarterly results for CAPACITE INFRAPROJECTS)

Read: Latest Annual Report Analysis of CAPACITE INFRAPROJECTS