CINELINE INDIA 2022-23 Annual Report Analysis

Thu, 19 Oct

CINELINE INDIA 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.

CINELINE INDIA Income Statement Analysis

• Operating income during the year rose 212.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 187.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.3% in FY23 as against 18.7% in FY22.
• Depreciation charges increased by 34.2% and finance costs decreased by 3.0% YoY, respectively.
• Other income declined by 32.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 78.8% in FY22 to 15.4% in FY23.

CINELINE INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	450	1,406	212.3%
Other income	Rs m	51	35	-32.2%
Total Revenues	Rs m	501	1,441	187.3%
Gross profit	Rs m	84	243	187.9%
Depreciation	Rs m	163	218	34.2%
Interest	Rs m	350	340	-3.0%
Profit before tax	Rs m	-377	-281	NA
Tax	Rs m	-23	-64	NA
Profit after tax	Rs m	-355	-217	NA
Gross profit margin	%	18.7	17.3
Effective tax rate	%	6.0	22.9
Net profit margin	%	-78.8	-15.4

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CINELINE INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 994 million as compared to Rs 326 million in FY22, thereby witnessing an increase of 204.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY22, a fall of 27.2%.
• Current assets rose 12% and stood at Rs 548 million, while fixed assets rose 28% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 26%.

CINELINE INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,064	1,187	11.6
Current Liabilities	Rs m	326	994	204.4
Long-term Debt	Rs m	3,047	2,219	-27.2
Total Liabilities	Rs m	4,443	5,589	25.8
Current assets	Rs m	488	548	12.3
Fixed Assets	Rs m	3,922	5,019	28.0
Total Assets	Rs m	4,443	5,589	25.8

CINELINE INDIA Cash Flow Statement Analysis

• CINELINE INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 763 million, an improvement of 671.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 157 million, an improvement of 39.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -938 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -18 million from the Rs 233 million net cash flows seen during FY22.

CINELINE INDIA 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	99	763	671.3%
Cash Flow from Investing Activities	Rs m	113	157	39.0%
Cash Flow from Financing Activities	Rs m	21	-938	-
Net Cash Flow	Rs m	233	-18	-

Current Valuations for CINELINE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.9, an improvement from the EPS of Rs -11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 118.0, stands at 453.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 2,234.0 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	15.0	44.5
TTM Earnings per share	Rs	-11.8	-6.9
Diluted earnings per share	Rs	-11.2	-6.9
Price to Cash Flow	x	-16.5	2,234.0
TTM P/E ratio	x	-8.9	453.7
Price / Book Value ratio	x	2.2	3.5
Market Cap	Rs m	2,390	4,194
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CINELINE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 1.5x 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 0.2x during FY23, from -0.1x 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 -18.2% during FY23, from -33.3% 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 improved and stood at 1.7% during FY23, from -0.7% 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 2.2% during FY23, from -0.1% 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	1.5	0.6
Debtors’ Days	Days	261	138
Interest coverage	x	-0.1	0.2
Debt to equity ratio	x	2.9	1.9
Return on assets	%	-0.1	2.2
Return on equity	%	-33.3	-18.2
Return on capital employed	%	-0.7	1.7

To see how CINELINE INDIA has performed over the last 5 years, please visit here.

CINELINE INDIA Share Price Performance

Over the last one year, CINELINE INDIA share price has moved up from Rs 106.8 to Rs 118.0, registering a gain of Rs 11.3 or around 10.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 14,455.6 (down 0.3%). Over the last one year it has moved up from 13,197.7 to 14,455.6, a gain of 1,258 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for CINELINE INDIA and quarterly results for CINELINE INDIA)