CAPLIN POINT 2020-21 Annual Report Analysis

Wed, 31 Mar

CAPLIN 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.

CAPLIN POINT Income Statement Analysis

• Operating income during the year rose 22.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.0% in FY21 as against 30.1% in FY20.
• Depreciation charges increased by 16.9% and finance costs increased by 396.9% YoY, respectively.
• Other income declined by 43.0% YoY.
• Net profit for the year grew by 16.9% YoY.
• Net profit margins during the year declined from 24.9% in FY20 to 23.7% in FY21.

CAPLIN POINT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,632	10,613	22.9%
Other income	Rs m	413	235	-43.0%
Total Revenues	Rs m	9,045	10,848	19.9%
Gross profit	Rs m	2,601	3,286	26.4%
Depreciation	Rs m	316	370	16.9%
Interest	Rs m	3	16	396.9%
Profit before tax	Rs m	2,695	3,136	16.4%
Tax	Rs m	544	622	14.4%
Profit after tax	Rs m	2,151	2,514	16.9%
Gross profit margin	%	30.1	31.0
Effective tax rate	%	20.2	19.8
Net profit margin	%	24.9	23.7

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CAPLIN POINT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 1 billion as compared to Rs 1 billion in FY20, thereby witnessing an decrease of -1.0%.
• Current assets rose 26% and stood at Rs 10 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 21%.

CAPLIN POINT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,385	11,710	24.8
Current Liabilities	Rs m	1,443	1,429	-1.0
Long-term Debt	Rs m	0	0	-100.0
Total Liabilities	Rs m	11,258	13,636	21.1
Current assets	Rs m	8,225	10,358	25.9
Fixed Assets	Rs m	3,032	3,278	8.1
Total Assets	Rs m	11,258	13,636	21.1

CAPLIN POINT Cash Flow Statement Analysis

• CAPLIN POINT's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 494.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -54 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -240 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 701 million net cash flows seen during FY20.

CAPLIN 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	447	2,658	494.9%
Cash Flow from Investing Activities	Rs m	-545	-54	-
Cash Flow from Financing Activities	Rs m	798	-240	-
Net Cash Flow	Rs m	701	2,362	236.9%

Current Valuations for CAPLIN POINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.2, an improvement from the EPS of Rs 28.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 404.2, stands at 12.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 12.5 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	114.1	140.3
TTM Earnings per share	Rs	28.4	33.2
Diluted earnings per share	Rs	28.4	33.2
Price to Cash Flow	x	8.7	12.5
TTM P/E ratio	x	10.0	12.2
Price / Book Value ratio	x	2.6	3.1
Market Cap	Rs m	24,433	35,930
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for CAPLIN POINT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.3x during FY21, from 5.7x 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 198.2x during FY21, from 843.1x 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 21.5% during FY21, from 22.9% 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 26.9% during FY21, from 28.7% 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 18.6% during FY21, from 19.1% 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	5.7	7.3
Debtors’ Days	Days	968	961
Interest coverage	x	843.1	198.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.1	18.6
Return on equity	%	22.9	21.5
Return on capital employed	%	28.7	26.9

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

CAPLIN POINT Share Price Performance

Over the last one year, CAPLIN POINT share price has moved up from Rs 282.4 to Rs 404.2, registering a gain of Rs 121.8 or around 43.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

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

Read: Latest Annual Report Analysis of CAPLIN POINT