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CELLO WORLD 2022-23 Annual Report Analysis

Tue, 7 Nov

CELLO WORLD 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.

CELLO WORLD Income Statement Analysis

• Operating income during the year rose 32.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.4% in FY23 as against 24.5% in FY22.
• Depreciation charges increased by 5.8% and finance costs decreased by 38.4% YoY, respectively.
• Other income grew by 5.1% YoY.
• Net profit for the year grew by 29.9% YoY.
• Net profit margins during the year declined from 16.2% in FY22 to 15.9% in FY23.

CELLO WORLD Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,592	17,967	32.2%
Other income	Rs m	159	167	5.1%
Total Revenues	Rs m	13,751	18,134	31.9%
Gross profit	Rs m	3,336	4,205	26.1%
Depreciation	Rs m	476	503	5.8%
Interest	Rs m	29	18	-38.4%
Profit before tax	Rs m	2,991	3,852	28.8%
Tax	Rs m	796	1,001	25.8%
Profit after tax	Rs m	2,195	2,851	29.9%
Gross profit margin	%	24.5	23.4
Effective tax rate	%	26.6	26.0
Net profit margin	%	16.2	15.9

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CELLO WORLD Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 10 billion in FY22, thereby witnessing an decrease of -51.4%.
• Long-term debt stood at Rs 87 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 13% and stood at Rs 11 billion, while fixed assets rose 21% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 16%.

CELLO WORLD Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	876	3,365	283.9
Current Liabilities	Rs m	10,393	5,055	-51.4
Long-term Debt	Rs m	0	87	0.0
Total Liabilities	Rs m	13,309	15,470	16.2
Current assets	Rs m	9,951	11,244	13.0
Fixed Assets	Rs m	3,358	4,071	21.2
Total Assets	Rs m	13,309	15,470	16.2

CELLO WORLD Cash Flow Statement Analysis

• CELLO WORLD's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 21.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion, an improvement of 112.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion, an improvement of 244% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -57 million from the Rs 196 million net cash flows seen during FY22.

CELLO WORLD 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	1,873	2,274	21.4%
Cash Flow from Investing Activities	Rs m	-2,618	-5,568	-
Cash Flow from Financing Activities	Rs m	941	3,238	244.1%
Net Cash Flow	Rs m	196	-57	-

Current Valuations for CELLO WORLD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.6, an decline from the EPS of Rs 219,523.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 797.2, stands at 59.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 50.3 times, while the price to sales ratio stands at 8.7 times.
• The company's price to cash flow (P/CF) ratio stood at 50.4 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	1,359,176.0	92.1
TTM Earnings per share	Rs	219,523.0	14.6
Diluted earnings per share	Rs	10.3	13.4
Price to Cash Flow	x	0.0	50.4
TTM P/E ratio	x	0.0	59.3
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	169,180
Dividends per share (Unadj.)	Rs	4.0	8.5

Ratio Analysis for CELLO WORLD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.0x 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 improved and stood at 220.4x during FY23, from 105.9x 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 84.7% during FY23, from 250.5% 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 112.1% during FY23, from 344.5% 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 improved and stood at 18.5% during FY23, from 16.7% 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	1.0	2.2
Debtors’ Days	Days	109	94
Interest coverage	x	105.9	220.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.7	18.5
Return on equity	%	250.5	84.7
Return on capital employed	%	344.5	112.1

To see how CELLO WORLD has performed over the last 5 years, please visit here.

CELLO WORLD Share Price Performance

Over the last one year, CELLO WORLD share price has moved up from Rs 0.0 to Rs 797.2, registering a gain of Rs 797.2 or around 0.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 45,092.7 (down 0.1%). Over the last one year it has moved up from 42,399.5 to 45,092.7, a gain of 2,693 points (up 6.4%).

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

(To know more, check out historical annual results for CELLO WORLD and quarterly results for CELLO WORLD)