CAPTAIN PIPES 2022-23 Annual Report Analysis

Wed, 25 Oct

CAPTAIN PIPES 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.

CAPTAIN PIPES Income Statement Analysis

• Operating income during the year rose 3.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.7% in FY23 as against 9.4% in FY22.
• Depreciation charges increased by 7.3% and finance costs decreased by 23.4% YoY, respectively.
• Other income grew by 32.3% YoY.
• Net profit for the year declined by 64.7% YoY.
• Net profit margins during the year declined from 6.2% in FY22 to 2.1% in FY23.

CAPTAIN PIPES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	827	855	3.4%
Other income	Rs m	3	3	32.3%
Total Revenues	Rs m	830	858	3.5%
Gross profit	Rs m	78	40	-48.7%
Depreciation	Rs m	9	10	7.3%
Interest	Rs m	11	9	-23.4%
Profit before tax	Rs m	60	25	-58.6%
Tax	Rs m	9	7	-23.0%
Profit after tax	Rs m	51	18	-64.7%
Gross profit margin	%	9.4	4.7
Effective tax rate	%	14.7	27.2
Net profit margin	%	6.2	2.1

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CAPTAIN PIPES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 106 million as compared to Rs 155 million in FY22, thereby witnessing an decrease of -31.4%.
• Long-term debt down at Rs 19 million as compared to Rs 29 million during FY22, a fall of 34.8%.
• Current assets fell 5% and stood at Rs 232 million, while fixed assets fell 3% and stood at Rs 101 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 333 million as against Rs 350 million during FY22, thereby witnessing a fall of 5%.

CAPTAIN PIPES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	142	200	40.9
Current Liabilities	Rs m	155	106	-31.4
Long-term Debt	Rs m	29	19	-34.8
Total Liabilities	Rs m	350	333	-4.7
Current assets	Rs m	245	232	-5.3
Fixed Assets	Rs m	105	101	-3.2
Total Assets	Rs m	350	333	-4.7

CAPTAIN PIPES Cash Flow Statement Analysis

• CAPTAIN PIPES's cash flow from operating activities (CFO) during FY23 stood at Rs 26 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 6 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 26 million from the Rs 0 million net cash flows seen during FY22.

CAPTAIN PIPES 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	-47	26	-
Cash Flow from Investing Activities	Rs m	40	-6	-
Cash Flow from Financing Activities	Rs m	6	6	-5.6%
Net Cash Flow	Rs m	0	26	-

Current Valuations for CAPTAIN PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 12.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22.2, stands at 174.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.8 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 71.0 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	198.9	6.1
TTM Earnings per share	Rs	12.3	0.1
Diluted earnings per share	Rs	0.4	0.1
Price to Cash Flow	x	7.1	71.0
TTM P/E ratio	x	8.4	174.2
Price / Book Value ratio	x	1.9	9.9
Market Cap	Rs m	266	1,982
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CAPTAIN PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.6x 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 deteriorated and stood at 3.9x during FY23, from 6.3x 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 declined and down at 9.0% during FY23, from 36.1% 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 declined and down at 15.3% during FY23, from 41.8% 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 declined and down at 8.1% during FY23, from 17.9% 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	1.6	2.2
Debtors’ Days	Days	507	406
Interest coverage	x	6.3	3.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	17.9	8.1
Return on equity	%	36.1	9.0
Return on capital employed	%	41.8	15.3

To see how CAPTAIN PIPES has performed over the last 5 years, please visit here.

CAPTAIN PIPES Share Price Performance

Over the last one year, CAPTAIN PIPES share price has moved up from Rs 10.6 to Rs 22.2, registering a gain of Rs 11.7 or around 110.6%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for CAPTAIN PIPES and quarterly results for CAPTAIN PIPES)