CAMS 2022-23 Annual Report Analysis

Mon, 17 Jul

CAMS 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.

CAMS Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 43.3% in FY23 as against 45.8% in FY22.
• Depreciation charges increased by 16.7% and finance costs increased by 6.6% YoY, respectively.
• Other income grew by 7.5% YoY.
• Net profit for the year declined by 0.8% YoY.
• Net profit margins during the year declined from 31.5% in FY22 to 29.3% in FY23.

CAMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,097	9,718	6.8%
Other income	Rs m	249	268	7.5%
Total Revenues	Rs m	9,346	9,986	6.9%
Gross profit	Rs m	4,165	4,212	1.1%
Depreciation	Rs m	516	603	16.7%
Interest	Rs m	71	76	6.6%
Profit before tax	Rs m	3,826	3,802	-0.6%
Tax	Rs m	957	956	-0.2%
Profit after tax	Rs m	2,869	2,846	-0.8%
Gross profit margin	%	45.8	43.3
Effective tax rate	%	25.0	25.1
Net profit margin	%	31.5	29.3

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CAMS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 11.5%.
• Current assets rose 17% and stood at Rs 14 billion, while fixed assets rose 9% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 18 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 15%.

CAMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,166	7,293	18.3
Current Liabilities	Rs m	7,770	8,662	11.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,496	17,853	15.2
Current assets	Rs m	12,214	14,284	16.9
Fixed Assets	Rs m	3,283	3,570	8.7
Total Assets	Rs m	15,496	17,853	15.2

CAMS Cash Flow Statement Analysis

• CAMS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 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 -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 119 million from the Rs -129 million net cash flows seen during FY22.

CAMS 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	3,215	3,191	-0.7%
Cash Flow from Investing Activities	Rs m	-1,309	-1,023	-
Cash Flow from Financing Activities	Rs m	-2,035	-2,049	-
Net Cash Flow	Rs m	-129	119	-

Current Valuations for CAMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.1, an decline from the EPS of Rs 58.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,277.0, stands at 39.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.3 times, while the price to sales ratio stands at 11.5 times.
• The company's price to cash flow (P/CF) ratio stood at 33.3 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	186.0	198.4
TTM Earnings per share	Rs	58.7	58.1
Diluted earnings per share	Rs	58.5	58.1
Price to Cash Flow	x	33.5	33.3
TTM P/E ratio	x	39.5	39.2
Price / Book Value ratio	x	23.1	15.8
Market Cap	Rs m	142,718	114,917
Dividends per share (Unadj.)	Rs	38.8	37.8

Ratio Analysis for CAMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.6x 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 deteriorated and stood at 51.0x during FY23, from 54.6x 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 39.0% during FY23, from 46.5% 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 53.2% during FY23, from 63.2% 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 declined and down at 16.4% during FY23, from 19.0% 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	1.6	1.6
Debtors’ Days	Days	103	124
Interest coverage	x	54.6	51.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.0	16.4
Return on equity	%	46.5	39.0
Return on capital employed	%	63.2	53.2

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 2,307.5 to Rs 2,277.0, registering a loss of Rs 30.6 or around 1.3%.

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

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