CAPLIN POINT 2021-22 Annual Report Analysis

Tue, 20 Sep

CAPLIN POINT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CAPLIN POINT Income Statement Analysis

• Operating income during the year rose 19.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.1% in FY22 as against 30.6% in FY21.
• Depreciation charges increased by 26.9% and finance costs decreased by 56.0% YoY, respectively.
• Other income grew by 39.2% YoY.
• Net profit for the year grew by 22.7% YoY.
• Net profit margins during the year grew from 23.7% in FY21 to 24.3% in FY22.

CAPLIN POINT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	10,613	12,694	19.6%
Other income	Rs m	279	389	39.2%
Total Revenues	Rs m	10,892	13,083	20.1%
Gross profit	Rs m	3,243	3,945	21.7%
Depreciation	Rs m	370	469	26.9%
Interest	Rs m	16	7	-56.0%
Profit before tax	Rs m	3,136	3,858	23.0%
Tax	Rs m	622	774	24.4%
Profit after tax	Rs m	2,514	3,085	22.7%
Gross profit margin	%	30.6	31.1
Effective tax rate	%	19.8	20.1
Net profit margin	%	23.7	24.3

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CAPLIN POINT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 45.4%.
• Current assets rose 28% and stood at Rs 13 billion, while fixed assets rose 24% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 17 billion as against Rs 14 billion during FY21, thereby witnessing a growth of 27%.

CAPLIN POINT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	11,710	14,750	26.0
Current Liabilities	Rs m	1,429	2,077	45.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,636	17,301	26.9
Current assets	Rs m	10,146	12,978	27.9
Fixed Assets	Rs m	3,490	4,323	23.9
Total Assets	Rs m	13,636	17,301	26.9

CAPLIN POINT Cash Flow Statement Analysis

• CAPLIN POINT's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 25.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 820.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -407 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 250 million from the Rs 2 billion net cash flows seen during FY21.

CAPLIN POINT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,686	3,368	25.4%
Cash Flow from Investing Activities	Rs m	-294	-2,709	-
Cash Flow from Financing Activities	Rs m	-240	-407	-
Net Cash Flow	Rs m	2,150	250	-88.4%

Current Valuations for CAPLIN POINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.7, an improvement from the EPS of Rs 33.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 710.0, stands at 16.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	140.3	167.5
TTM Earnings per share	Rs	33.2	40.7
Diluted earnings per share	Rs	33.2	40.7
Price to Cash Flow	x	10.6	15.4
TTM P/E ratio	x	12.2	16.6
Price / Book Value ratio	x	3.1	3.7
Market Cap	Rs m	35,930	54,593
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for CAPLIN POINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.2x during FY22, from 7.1x during FY21. 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 improved and stood at 552.2x during FY22, from 198.2x during FY21. 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 20.9% during FY22, from 21.5% during FY22. 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 26.2% during FY22, from 26.9% during FY21. 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 17.9% during FY22, from 18.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	7.1	6.2
Debtors’ Days	Days	10	9
Interest coverage	x	198.2	552.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.6	17.9
Return on equity	%	21.5	20.9
Return on capital employed	%	26.9	26.2

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 down from Rs 864.2 to Rs 710.0, registering a loss of Rs 154.2 or around 17.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 23,299.6 (up 2.8%). Over the last one year it has moved down from 26,100.4 to 23,299.6, a loss of 2,801 points (down 10.7%).

Overall, the S&P BSE SENSEX is up 0.9% 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