CENTRUM CAPITAL 2022-23 Annual Report Analysis

Fri, 10 Nov

CENTRUM CAPITAL 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.

CENTRUM CAPITAL Income Statement Analysis

• Operating income during the year rose 88.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 216.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.6% in FY23 as against 20.0% in FY22.
• Depreciation charges increased by 76.8% and finance costs increased by 92.9% YoY, respectively.
• Other income grew by 97.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 27.3% in FY22 to 14.0% in FY23.

CENTRUM CAPITAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,945	13,101	88.6%
Other income	Rs m	281	554	97.4%
Total Revenues	Rs m	7,226	13,655	89.0%
Gross profit	Rs m	1,391	4,403	216.6%
Depreciation	Rs m	215	380	76.8%
Interest	Rs m	3,300	6,364	92.9%
Profit before tax	Rs m	-1,843	-1,786	NA
Tax	Rs m	56	43	-23.6%
Profit after tax	Rs m	-1,899	-1,829	NA
Gross profit margin	%	20.0	33.6
Effective tax rate	%	-3.0	-2.4
Net profit margin	%	-27.3	-14.0

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CENTRUM CAPITAL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 53 billion as compared to Rs 45 billion in FY22, thereby witnessing an increase of 18.1%.
• Long-term debt down at Rs 45 billion as compared to Rs 60 billion during FY22, a fall of 25.5%.
• Current assets fell 78% and stood at Rs 11 billion, while fixed assets rose 40% and stood at Rs 100 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 111 billion as against Rs 119 billion during FY22, thereby witnessing a fall of 7%.

CENTRUM CAPITAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,412	5,540	-13.6
Current Liabilities	Rs m	44,539	52,607	18.1
Long-term Debt	Rs m	60,158	44,826	-25.5
Total Liabilities	Rs m	119,168	110,734	-7.1
Current assets	Rs m	47,881	10,771	-77.5
Fixed Assets	Rs m	71,255	99,877	40.2
Total Assets	Rs m	119,168	110,734	-7.1

CENTRUM CAPITAL Cash Flow Statement Analysis

• CENTRUM CAPITAL's cash flow from operating activities (CFO) during FY23 stood at Rs -41 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 971 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -38 billion from the Rs 42 billion net cash flows seen during FY22.

CENTRUM CAPITAL 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	33,308	-40,906	-
Cash Flow from Investing Activities	Rs m	-2,859	1,423	-
Cash Flow from Financing Activities	Rs m	7,374	971	-86.8%
Net Cash Flow	Rs m	42,263	-38,367	-

Current Valuations for CENTRUM CAPITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.4, an improvement from the EPS of Rs -4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.2, stands at -8.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at -7.1 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	16.7	31.5
TTM Earnings per share	Rs	-4.6	-4.4
Diluted earnings per share	Rs	-4.6	-4.4
Price to Cash Flow	x	-6.4	-7.1
TTM P/E ratio	x	-5.7	-8.8
Price / Book Value ratio	x	2.6	1.9
Market Cap	Rs m	16,745	10,288
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CENTRUM CAPITAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY23, from 1.1x 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 0.7x during FY23, from 0.4x 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 declined and down at -33.0% during FY23, from -29.6% 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 9.1% during FY23, from 2.2% 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 4.1% during FY23, from 1.2% 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	1.1	0.2
Debtors’ Days	Days	182	89
Interest coverage	x	0.4	0.7
Debt to equity ratio	x	9.4	8.1
Return on assets	%	1.2	4.1
Return on equity	%	-29.6	-33.0
Return on capital employed	%	2.2	9.1

To see how CENTRUM CAPITAL has performed over the last 5 years, please visit here.

CENTRUM CAPITAL Share Price Performance

Over the last one year, CENTRUM CAPITAL share price has moved up from Rs 24.2 to Rs 27.2, registering a gain of Rs 3.0 or around 12.4%.

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for CENTRUM CAPITAL and quarterly results for CENTRUM CAPITAL)