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CCL PRODUCTS 2022-23 Annual Report Analysis

Wed, 16 Aug

CCL PRODUCTS 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.

CCL PRODUCTS Income Statement Analysis

• Operating income during the year rose 41.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.7% in FY23 as against 22.2% in FY22.
• Depreciation charges increased by 10.9% and finance costs increased by 110.3% YoY, respectively.
• Other income grew by 51.6% YoY.
• Net profit for the year grew by 31.6% YoY.
• Net profit margins during the year declined from 14.0% in FY22 to 13.0% in FY23.

CCL PRODUCTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,620	20,712	41.7%
Other income	Rs m	111	168	51.6%
Total Revenues	Rs m	14,731	20,880	41.7%
Gross profit	Rs m	3,241	3,863	19.2%
Depreciation	Rs m	575	637	10.9%
Interest	Rs m	164	344	110.3%
Profit before tax	Rs m	2,613	3,050	16.7%
Tax	Rs m	570	361	-36.6%
Profit after tax	Rs m	2,044	2,689	31.6%
Gross profit margin	%	22.2	18.7
Effective tax rate	%	21.8	11.8
Net profit margin	%	14.0	13.0

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CCL PRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 32.7%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 79.8%.
• Current assets rose 26% and stood at Rs 12 billion, while fixed assets rose 25% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 26 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 25%.

CCL PRODUCTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,439	14,715	18.3
Current Liabilities	Rs m	6,301	8,361	32.7
Long-term Debt	Rs m	1,117	2,008	79.8
Total Liabilities	Rs m	20,699	25,969	25.5
Current assets	Rs m	9,913	12,472	25.8
Fixed Assets	Rs m	10,787	13,497	25.1
Total Assets	Rs m	20,699	25,969	25.5

CCL PRODUCTS Cash Flow Statement Analysis

• CCL PRODUCTS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 70.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 73.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 1,780% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 298 million from the Rs -667 million net cash flows seen during FY22.

CCL PRODUCTS 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	1,163	1,983	70.6%
Cash Flow from Investing Activities	Rs m	-1,917	-3,321	-
Cash Flow from Financing Activities	Rs m	87	1,636	1,779.8%
Net Cash Flow	Rs m	-667	298	-

Current Valuations for CCL PRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.2, an improvement from the EPS of Rs 15.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 604.1, stands at 29.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 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	109.9	155.7
TTM Earnings per share	Rs	15.4	20.2
Diluted earnings per share	Rs	15.4	20.2
Price to Cash Flow	x	20.5	18.2
TTM P/E ratio	x	26.3	29.0
Price / Book Value ratio	x	4.0	4.1
Market Cap	Rs m	49,313	60,405
Dividends per share (Unadj.)	Rs	5.0	5.5

Ratio Analysis for CCL PRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 9.9x during FY23, from 17.0x 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 18.3% during FY23, from 16.4% 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 20.3% during FY23, from 20.5% 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 11.7% during FY23, from 10.7% 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	1.5
Debtors’ Days	Days	798	778
Interest coverage	x	17.0	9.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.7	11.7
Return on equity	%	16.4	18.3
Return on capital employed	%	20.5	20.3

To see how CCL PRODUCTS has performed over the last 5 years, please visit here.

CCL PRODUCTS Share Price Performance

Over the last one year, CCL PRODUCTS share price has moved up from Rs 445.1 to Rs 604.1, registering a gain of Rs 159.1 or around 35.7%.

Overall, the S&P BSE SENSEX is up 10.5% over the year.

(To know more, check out historical annual results for CCL PRODUCTS and quarterly results for CCL PRODUCTS)