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COMPUCOM SOFTWARE 2021-22 Annual Report Analysis

Thu, 25 Aug

COMPUCOM SOFTWARE has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

COMPUCOM SOFTWARE Income Statement Analysis

• Operating income during the year rose 71.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 1.8% in FY22 as against 18.9% in FY21.
• Depreciation charges increased by 104.2% and finance costs decreased by 14.6% YoY, respectively.
• Other income grew by 172.9% YoY.
• Net profit for the year grew by 682.8% YoY.
• Net profit margins during the year grew from 9.4% in FY21 to 42.9% in FY22.

COMPUCOM SOFTWARE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	173	297	71.7%
Other income	Rs m	81	221	172.9%
Total Revenues	Rs m	254	517	104.0%
Gross profit	Rs m	-33	-5	NA
Depreciation	Rs m	16	33	104.2%
Interest	Rs m	6	5	-14.6%
Profit before tax	Rs m	26	177	575.3%
Tax	Rs m	10	50	400.9%
Profit after tax	Rs m	16	127	682.8%
Gross profit margin	%	-18.9	-1.8
Effective tax rate	%	38.1	28.3
Net profit margin	%	9.4	42.9

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COMPUCOM SOFTWARE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 152 million as compared to Rs 62 million in FY21, thereby witnessing an increase of 144.2%.
• Current assets fell 5% and stood at Rs 948 million, while fixed assets rose 53% and stood at Rs 697 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 13%.

COMPUCOM SOFTWARE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,269	1,375	8.4
Current Liabilities	Rs m	62	152	144.2
Long-term Debt	Rs m	22	0	-100.0
Total Liabilities	Rs m	1,456	1,645	13.0
Current assets	Rs m	999	948	-5.1
Fixed Assets	Rs m	457	697	52.6
Total Assets	Rs m	1,456	1,645	13.0

COMPUCOM SOFTWARE Cash Flow Statement Analysis

• COMPUCOM SOFTWARE's cash flow from operating activities (CFO) during FY22 stood at Rs 133 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -278 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 11 million, an improvement of 110% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -134 million from the Rs 125 million net cash flows seen during FY21.

COMPUCOM SOFTWARE Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	202	133	-34.2%
Cash Flow from Investing Activities	Rs m	36	-278	-
Cash Flow from Financing Activities	Rs m	-113	11	-
Net Cash Flow	Rs m	125	-134	-

Current Valuations for COMPUCOM SOFTWARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23.3, stands at 17.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2.2	3.7
TTM Earnings per share	Rs	0.2	1.6
Diluted earnings per share	Rs	0.2	1.6
Price to Cash Flow	x	21.6	12.2
TTM P/E ratio	x	43.1	17.8
Price / Book Value ratio	x	0.5	1.4
Market Cap	Rs m	578	1,952
Dividends per share (Unadj.)	Rs	0.3	0.4

Ratio Analysis for COMPUCOM SOFTWARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.2x during FY22, from 16.0x during FY21. 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 37.0x during FY22, from 5.6x during FY21. 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 9.3% during FY22, from 1.3% during FY22. 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 13.3% during FY22, from 2.5% during FY21. 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 8.0% during FY22, from 1.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	16.0	6.2
Debtors’ Days	Days	6,251	4,029
Interest coverage	x	5.6	37.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.5	8.0
Return on equity	%	1.3	9.3
Return on capital employed	%	2.5	13.3

To see how COMPUCOM SOFTWARE has performed over the last 5 years, please visit here.

COMPUCOM SOFTWARE Share Price Performance

Over the last one year, COMPUCOM SOFTWARE share price has moved up from Rs 13.5 to Rs 23.3, registering a gain of Rs 9.8 or around 72.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,193.4 (down 0.9%). Over the last one year it has moved down from 33,959.4 to 29,193.4, a loss of 4,766 points (down 14.0%).

Overall, the S&P BSE SENSEX is up 5.8% over the year.

(To know more, check out historical annual results for COMPUCOM SOFTWARE and quarterly results for COMPUCOM SOFTWARE)