CAMS 2021-22 Annual Report Analysis

Wed, 8 Jun

CAMS 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.

CAMS Income Statement Analysis

• Operating income during the year rose 28.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 45.8% in FY22 as against 39.0% in FY21.
• Depreciation charges increased by 18.9% and finance costs decreased by 9.7% YoY, respectively.
• Other income declined by 51.0% YoY.
• Net profit for the year grew by 39.8% YoY.
• Net profit margins during the year grew from 29.1% in FY21 to 31.5% in FY22.

CAMS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,055	9,097	28.9%
Other income	Rs m	509	249	-51.0%
Total Revenues	Rs m	7,564	9,346	23.6%
Gross profit	Rs m	2,749	4,165	51.5%
Depreciation	Rs m	434	516	18.9%
Interest	Rs m	79	71	-9.7%
Profit before tax	Rs m	2,745	3,826	39.4%
Tax	Rs m	692	957	38.4%
Profit after tax	Rs m	2,053	2,869	39.8%
Gross profit margin	%	39.0	45.8
Effective tax rate	%	25.2	25.0
Net profit margin	%	29.1	31.5

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CAMS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 12.3%.
• Current assets rose 18% and stood at Rs 12 billion, while fixed assets rose 10% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 15 billion as against Rs 13 billion during FY21, thereby witnessing a growth of 16%.

CAMS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,046	6,166	22.2
Current Liabilities	Rs m	6,921	7,769	12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,372	15,496	15.9
Current assets	Rs m	10,387	12,213	17.6
Fixed Assets	Rs m	2,985	3,283	10.0
Total Assets	Rs m	13,372	15,496	15.9

CAMS Cash Flow Statement Analysis

• CAMS's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 21.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -129 million from the Rs -58 million net cash flows seen during FY21.

CAMS 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	2,640	3,215	21.8%
Cash Flow from Investing Activities	Rs m	22	-1,309	-
Cash Flow from Financing Activities	Rs m	-2,720	-2,035	-
Net Cash Flow	Rs m	-58	-129	-

Current Valuations for CAMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.7, an improvement from the EPS of Rs 42.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,440.9, stands at 41.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.4 times, while the price to sales ratio stands at 13.1 times.
• The company's price to cash flow (P/CF) ratio stood at 42.2 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	144.6	186.0
TTM Earnings per share	Rs	42.1	58.7
Diluted earnings per share	Rs	42.0	58.6
Price to Cash Flow	x	36.5	42.2
TTM P/E ratio	x	44.2	41.6
Price / Book Value ratio	x	16.0	23.1
Market Cap	Rs m	80,504	142,718
Dividends per share (Unadj.)	Rs	62.9	38.8

Ratio Analysis for CAMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.5x 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 54.6x during FY22, from 35.7x 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 46.5% during FY22, from 40.7% 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 63.2% during FY22, from 56.0% 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 19.0% during FY22, from 15.9% 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	1.5	1.6
Debtors’ Days	Days	150	103
Interest coverage	x	35.7	54.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	19.0
Return on equity	%	40.7	46.5
Return on capital employed	%	56.0	63.2

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

CAMS Share Price Performance

Over the last one year, CAMS share price has moved down from Rs 2,692.3 to Rs 2,440.9, registering a loss of Rs 251.5 or around 9.3%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

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

Read: Latest Annual Report Analysis of CAMS