CONTAINER CORPORATION 2022-23 Annual Report Analysis

Fri, 1 Sep

CONTAINER CORPORATION 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.

CONTAINER CORPORATION Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.1% in FY23 as against 23.2% in FY22.
• Depreciation charges increased by 2.1% and finance costs increased by 2.9% YoY, respectively.
• Other income grew by 27.6% YoY.
• Net profit for the year grew by 11.4% YoY.
• Net profit margins during the year grew from 13.8% in FY22 to 14.4% in FY23.

CONTAINER CORPORATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	76,527	81,691	6.7%
Other income	Rs m	2,455	3,134	27.6%
Total Revenues	Rs m	78,983	84,825	7.4%
Gross profit	Rs m	17,745	18,875	6.4%
Depreciation	Rs m	5,614	5,730	2.1%
Interest	Rs m	628	647	2.9%
Profit before tax	Rs m	13,957	15,632	12.0%
Tax	Rs m	3,422	3,897	13.9%
Profit after tax	Rs m	10,535	11,735	11.4%
Gross profit margin	%	23.2	23.1
Effective tax rate	%	24.5	24.9
Net profit margin	%	13.8	14.4

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CONTAINER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 14 billion as compared to Rs 14 billion in FY22, thereby witnessing an decrease of -5.2%.
• Long-term debt down at Rs 491 million as compared to Rs 555 million during FY22, a fall of 11.4%.
• Current assets rose 12% and stood at Rs 41 billion, while fixed assets rose 0% and stood at Rs 93 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 134 billion as against Rs 129 billion during FY22, thereby witnessing a growth of 4%.

CONTAINER CORPORATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	107,539	112,260	4.4
Current Liabilities	Rs m	14,253	13,510	-5.2
Long-term Debt	Rs m	555	491	-11.4
Total Liabilities	Rs m	128,948	133,733	3.7
Current assets	Rs m	36,767	41,223	12.1
Fixed Assets	Rs m	92,181	92,510	0.4
Total Assets	Rs m	128,948	133,733	3.7

CONTAINER CORPORATION Cash Flow Statement Analysis

• CONTAINER CORPORATION's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion, an improvement of 2.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -412 million from the Rs -3 billion net cash flows seen during FY22.

CONTAINER CORPORATION 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	13,700	14,058	2.6%
Cash Flow from Investing Activities	Rs m	-10,685	-5,934	-
Cash Flow from Financing Activities	Rs m	-5,950	-8,536	-
Net Cash Flow	Rs m	-2,935	-412	-

Current Valuations for CONTAINER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.3, an improvement from the EPS of Rs 17.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 672.3, stands at 37.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 24.1 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	125.6	134.1
TTM Earnings per share	Rs	17.3	19.3
Diluted earnings per share	Rs	17.3	19.3
Price to Cash Flow	x	25.4	24.1
TTM P/E ratio	x	39.8	37.2
Price / Book Value ratio	x	3.7	3.8
Market Cap	Rs m	394,853	421,205
Dividends per share (Unadj.)	Rs	9.0	11.0

Ratio Analysis for CONTAINER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY23, from 2.6x 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 improved and stood at 25.2x during FY23, from 23.2x 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 10.5% during FY23, from 9.8% 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 14.4% during FY23, from 13.5% 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 9.3% during FY23, from 8.7% 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	2.6	3.1
Debtors’ Days	Days	1	1
Interest coverage	x	23.2	25.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	9.3
Return on equity	%	9.8	10.5
Return on capital employed	%	13.5	14.4

To see how CONTAINER CORPORATION has performed over the last 5 years, please visit here.

CONTAINER CORPORATION Share Price Performance

Over the last one year, CONTAINER CORPORATION share price has moved down from Rs 692.7 to Rs 672.3, registering a loss of Rs 20.4 or around 2.9%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for CONTAINER CORPORATION and quarterly results for CONTAINER CORPORATION)