CAPLIN POINT 2022-23 Annual Report Analysis

Tue, 12 Sep

CAPLIN 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.

CAPLIN POINT Income Statement Analysis

• Operating income during the year rose 15.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.0% in FY23 as against 31.1% in FY22.
• Depreciation charges decreased by 4.1% and finance costs increased by 11.4% YoY, respectively.
• Other income grew by 45.3% YoY.
• Net profit for the year grew by 22.2% YoY.
• Net profit margins during the year grew from 24.3% in FY22 to 25.7% in FY23.

CAPLIN POINT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,694	14,667	15.5%
Other income	Rs m	389	565	45.3%
Total Revenues	Rs m	13,083	15,233	16.4%
Gross profit	Rs m	3,945	4,406	11.7%
Depreciation	Rs m	469	450	-4.1%
Interest	Rs m	7	8	11.4%
Profit before tax	Rs m	3,858	4,514	17.0%
Tax	Rs m	774	744	-3.9%
Profit after tax	Rs m	3,085	3,770	22.2%
Gross profit margin	%	31.1	30.0
Effective tax rate	%	20.1	16.5
Net profit margin	%	24.3	25.7

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CAPLIN POINT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 29.0%.
• Current assets rose 20% and stood at Rs 16 billion, while fixed assets rose 44% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 26%.

CAPLIN POINT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,685	18,651	27.0
Current Liabilities	Rs m	2,077	2,680	29.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,301	21,776	25.9
Current assets	Rs m	12,978	15,545	19.8
Fixed Assets	Rs m	4,323	6,231	44.1
Total Assets	Rs m	17,301	21,776	25.9

CAPLIN POINT Cash Flow Statement Analysis

• CAPLIN POINT's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -282 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 268 million from the Rs -808 million net cash flows seen during FY22.

CAPLIN 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	3,367	2,714	-19.4%
Cash Flow from Investing Activities	Rs m	-3,768	-2,176	-
Cash Flow from Financing Activities	Rs m	-407	-282	-
Net Cash Flow	Rs m	-808	268	-

Current Valuations for CAPLIN POINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.7, an improvement from the EPS of Rs 40.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 967.4, stands at 18.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	167.5	193.2
TTM Earnings per share	Rs	40.7	49.7
Diluted earnings per share	Rs	40.6	49.6
Price to Cash Flow	x	14.5	12.9
TTM P/E ratio	x	16.7	18.6
Price / Book Value ratio	x	3.7	2.9
Market Cap	Rs m	54,593	54,308
Dividends per share (Unadj.)	Rs	4.0	4.5

Ratio Analysis for CAPLIN POINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.8x during FY23, from 6.2x 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 improved and stood at 579.7x during FY23, from 552.2x 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 20.2% during FY23, from 21.0% 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 24.2% during FY23, from 26.3% 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 17.3% during FY23, from 17.9% 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	6.2	5.8
Debtors’ Days	Days	9	10
Interest coverage	x	552.2	579.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.9	17.3
Return on equity	%	21.0	20.2
Return on capital employed	%	26.3	24.2

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 up from Rs 769.1 to Rs 967.4, registering a gain of Rs 198.3 or around 25.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,288.1 (down 0.5%). Over the last one year it has moved up from 23,241.7 to 28,288.1, a gain of 5,046 points (up 21.7%).

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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