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CL EDUCATE 2022-23 Annual Report Analysis

Mon, 17 Jul

CL EDUCATE 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.

CL EDUCATE Income Statement Analysis

• Operating income during the year rose 39.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY23 as against 9.6% in FY22.
• Depreciation charges increased by 38.4% and finance costs decreased by 54.5% YoY, respectively.
• Other income declined by 26.5% YoY.
• Net profit for the year grew by 63.4% YoY.
• Net profit margins during the year grew from 6.6% in FY22 to 7.7% in FY23.

CL EDUCATE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,092	2,913	39.3%
Other income	Rs m	87	64	-26.5%
Total Revenues	Rs m	2,179	2,977	36.6%
Gross profit	Rs m	201	251	24.9%
Depreciation	Rs m	81	112	38.4%
Interest	Rs m	35	16	-54.5%
Profit before tax	Rs m	172	188	8.8%
Tax	Rs m	34	-38	NA
Profit after tax	Rs m	138	225	63.4%
Gross profit margin	%	9.6	8.6
Effective tax rate	%	19.9	-20.2
Net profit margin	%	6.6	7.7

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CL EDUCATE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 865 million as compared to Rs 728 million in FY22, thereby witnessing an increase of 18.9%.
• Long-term debt down at Rs 7 million as compared to Rs 29 million during FY22, a fall of 76.2%.
• Current assets rose 4% and stood at Rs 2 billion, while fixed assets rose 53% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 5%.

CL EDUCATE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,616	2,740	4.7
Current Liabilities	Rs m	728	865	18.9
Long-term Debt	Rs m	29	7	-76.2
Total Liabilities	Rs m	3,359	3,541	5.4
Current assets	Rs m	1,878	1,945	3.6
Fixed Assets	Rs m	955	1,464	53.3
Total Assets	Rs m	3,359	3,541	5.4

CL EDUCATE Cash Flow Statement Analysis

• CL EDUCATE's cash flow from operating activities (CFO) during FY23 stood at Rs 243 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 76 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -221 million, an improvement of 36% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 98 million from the Rs -21 million net cash flows seen during FY22.

CL EDUCATE 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	334	243	-27.2%
Cash Flow from Investing Activities	Rs m	-7	76	-
Cash Flow from Financing Activities	Rs m	-348	-221	-
Net Cash Flow	Rs m	-21	98	-

Current Valuations for CL EDUCATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an decline from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 73.1, stands at 17.5 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	73.8	52.9
TTM Earnings per share	Rs	4.9	4.1
Diluted earnings per share	Rs	2.5	4.1
Price to Cash Flow	x	15.7	11.7
TTM P/E ratio	x	23.7	17.5
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	3,360	3,958
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CL EDUCATE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x 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 12.7x during FY23, from 5.9x 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 8.2% during FY23, from 5.3% 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 7.4% during FY23, from 7.8% 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 improved and stood at 6.8% during FY23, from 5.2% 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	2.2
Debtors’ Days	Days	872	872
Interest coverage	x	5.9	12.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.2	6.8
Return on equity	%	5.3	8.2
Return on capital employed	%	7.8	7.4

To see how CL EDUCATE has performed over the last 5 years, please visit here.

CL EDUCATE Share Price Performance

Over the last one year, CL EDUCATE share price has moved up from Rs 61.9 to Rs 73.1, registering a gain of Rs 11.2 or around 18.1%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for CL EDUCATE and quarterly results for CL EDUCATE)