CAREER POINT 2020-21 Annual Report Analysis

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CAREER POINT 2020-21 Annual Report Analysis
Mon, 22 Nov

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 22.5% in FY20 to 0.2% 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 % 22.5 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 139.1, stands at -76.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 5.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 57.9 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 8.0 57.9
TTM P/E ratio x -76.0 -76.1
Price / Book Value ratio x 0.4 0.6
Market Cap Rs m 2,526 2,530
Dividends per share (Unadj.) Rs 3.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 down from Rs 164.9 to Rs 139.1, registering a loss of Rs 25.8 or around 15.7%.

Overall, the S&P BSE SENSEX is up 33.0% over the year.

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

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