CAREER POINT 2020-21 Annual Report Analysis

Wed, 31 Mar

CAREER POINT has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

CAREER POINT Income Statement Analysis

• Operating income during the year fell 52.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 84.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.7% in FY21 as against 37.8% in FY20.
• Depreciation charges decreased by 4.2% and finance costs decreased by 24.8% YoY, respectively.
• Other income grew by 51.6% YoY.
• Net profit for the year declined by 99.5% YoY.
• Net profit margins during the year declined from 23.5% in FY20 to 0.3% in FY21.

CAREER POINT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,153	547	-52.6%
Other income	Rs m	53	81	51.6%
Total Revenues	Rs m	1,206	627	-48.0%
Gross profit	Rs m	435	69	-84.1%
Depreciation	Rs m	44	42	-4.2%
Interest	Rs m	66	50	-24.8%
Profit before tax	Rs m	378	58	-84.8%
Tax	Rs m	107	56	-47.4%
Profit after tax	Rs m	271	1	-99.5%
Gross profit margin	%	37.8	12.7
Effective tax rate	%	28.2	97.5
Net profit margin	%	23.5	0.3

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CAREER POINT Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 615 million as compared to Rs 593 million in FY20, thereby witnessing an increase of 3.7%.
• Long-term debt down at Rs 214 million as compared to Rs 261 million during FY20, a fall of 17.7%.
• Current assets rose 1% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 5 billion during FY20, thereby witnessing a fall of 0%.

CAREER POINT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,488	4,478	-0.2
Current Liabilities	Rs m	593	615	3.7
Long-term Debt	Rs m	261	214	-17.7
Total Liabilities	Rs m	5,436	5,433	-0.1
Current assets	Rs m	2,496	2,533	1.5
Fixed Assets	Rs m	2,940	2,900	-1.4
Total Assets	Rs m	5,436	5,433	-0.1

CAREER POINT Cash Flow Statement Analysis

• CAREER POINT's cash flow from operating activities (CFO) during FY21 stood at Rs 51 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 76 million, an improvement of 50.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -122 million, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 5 million from the Rs 28 million net cash flows seen during FY20.

CAREER POINT Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	141	51	-64.2%
Cash Flow from Investing Activities	Rs m	51	76	50.1%
Cash Flow from Financing Activities	Rs m	-164	-122	-
Net Cash Flow	Rs m	28	5	-82.8%

Current Valuations for CAREER POINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 14.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 131.1, stands at 1,610.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 65.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	63.5	30.1
TTM Earnings per share	Rs	14.9	0.1
Diluted earnings per share	Rs	14.9	0.1
Price to Cash Flow	x	7.1	65.8
TTM P/E ratio	x	8.3	1,610.9
Price / Book Value ratio	x	0.4	0.6
Market Cap	Rs m	1,887	2,874
Dividends per share (Unadj.)	Rs	3.0	1.0

Ratio Analysis for CAREER POINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.1x during FY21, from 4.2x during FY20. 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 2.2x during FY21, from 6.7x during FY20. 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 0.0% during FY21, from 6.0% during FY21. 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 2.3% during FY21, from 9.4% during FY20. 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 0.9% during FY21, from 6.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	4.2	4.1
Debtors’ Days	Days	1,566	2,815
Interest coverage	x	6.7	2.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.2	0.9
Return on equity	%	6.0	0.0
Return on capital employed	%	9.4	2.3

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

CAREER POINT Share Price Performance

Over the last one year, CAREER POINT share price has moved up from Rs 123.5 to Rs 131.1, registering a gain of Rs 7.6 or around 6.2%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of CAREER POINT