CAREER POINT 2022-23 Annual Report Analysis

Tue, 7 Nov

CAREER POINT 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.

CAREER POINT Income Statement Analysis

• Operating income during the year rose 52.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY23 as against 52.8% in FY22.
• Depreciation charges increased by 0.8% and finance costs decreased by 42.7% YoY, respectively.
• Other income grew by 15.8% YoY.
• Net profit for the year declined by 46.8% YoY.
• Net profit margins during the year declined from 40.5% in FY22 to 14.1% in FY23.

CAREER POINT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	566	865	52.8%
Other income	Rs m	51	59	15.8%
Total Revenues	Rs m	617	924	49.8%
Gross profit	Rs m	299	153	-48.9%
Depreciation	Rs m	41	42	0.8%
Interest	Rs m	32	19	-42.7%
Profit before tax	Rs m	276	152	-45.1%
Tax	Rs m	47	30	-36.8%
Profit after tax	Rs m	229	122	-46.8%
Gross profit margin	%	52.8	17.7
Effective tax rate	%	17.0	19.6
Net profit margin	%	40.5	14.1

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

CAREER POINT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 260 million as compared to Rs 238 million in FY22, thereby witnessing an increase of 9.6%.
• Long-term debt down at Rs 86 million as compared to Rs 110 million during FY22, a fall of 22.0%.
• Current assets rose 16% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 8%.

CAREER POINT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,707	4,794	1.9
Current Liabilities	Rs m	238	260	9.6
Long-term Debt	Rs m	110	86	-22.0
Total Liabilities	Rs m	5,192	5,617	8.2
Current assets	Rs m	1,662	1,925	15.8
Fixed Assets	Rs m	3,530	3,692	4.6
Total Assets	Rs m	5,192	5,617	8.2

CAREER POINT Cash Flow Statement Analysis

• CAREER POINT's cash flow from operating activities (CFO) during FY23 stood at Rs 26 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 44 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -102 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -32 million from the Rs 28 million net cash flows seen during FY22.

CAREER POINT 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	418	26	-93.8%
Cash Flow from Investing Activities	Rs m	104	44	-57.7%
Cash Flow from Financing Activities	Rs m	-494	-102	-
Net Cash Flow	Rs m	28	-32	-

Current Valuations for CAREER POINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an decline from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 226.4, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 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	31.1	47.6
TTM Earnings per share	Rs	12.6	6.7
Diluted earnings per share	Rs	12.6	6.7
Price to Cash Flow	x	7.4	18.2
TTM P/E ratio	x	8.8	21.7
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	2,569	2,978
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for CAREER POINT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.4x during FY23, from 7.0x 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 9.2x during FY23, from 9.5x 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 2.5% during FY23, from 4.9% 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 3.5% during FY23, from 6.4% 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 2.5% during FY23, from 5.0% 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	7.0	7.4
Debtors’ Days	Days	1,480	602
Interest coverage	x	9.5	9.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	2.5
Return on equity	%	4.9	2.5
Return on capital employed	%	6.4	3.5

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 128.3 to Rs 226.4, registering a gain of Rs 98.1 or around 76.5%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

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