COMPUAGE INFOCOM 2021-22 Annual Report Analysis

Wed, 24 Aug

COMPUAGE INFOCOM 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.

COMPUAGE INFOCOM Income Statement Analysis

• Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.3% in FY22 as against 2.1% in FY21.
• Depreciation charges decreased by 5.2% and finance costs increased by 18.2% YoY, respectively.
• Other income declined by 5.4% YoY.
• Net profit for the year grew by 29.3% YoY.
• Net profit margins during the year grew from 0.6% in FY21 to 0.6% in FY22.

COMPUAGE INFOCOM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	37,298	42,075	12.8%
Other income	Rs m	174	165	-5.4%
Total Revenues	Rs m	37,472	42,240	12.7%
Gross profit	Rs m	770	980	27.2%
Depreciation	Rs m	36	34	-5.2%
Interest	Rs m	629	744	18.2%
Profit before tax	Rs m	279	366	31.4%
Tax	Rs m	72	99	37.2%
Profit after tax	Rs m	207	267	29.3%
Gross profit margin	%	2.1	2.3
Effective tax rate	%	25.9	27.0
Net profit margin	%	0.6	0.6

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COMPUAGE INFOCOM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 5.4%.
• Long-term debt down at Rs 478 million as compared to Rs 711 million during FY21, a fall of 32.8%.
• Current assets rose 4% and stood at Rs 11 billion, while fixed assets rose 2% and stood at Rs 539 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 11 billion during FY21, thereby witnessing a growth of 4%.

COMPUAGE INFOCOM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,223	2,477	11.4
Current Liabilities	Rs m	8,337	8,787	5.4
Long-term Debt	Rs m	711	478	-32.8
Total Liabilities	Rs m	11,328	11,805	4.2
Current assets	Rs m	10,799	11,267	4.3
Fixed Assets	Rs m	530	539	1.6
Total Assets	Rs m	11,328	11,805	4.2

COMPUAGE INFOCOM Cash Flow Statement Analysis

• COMPUAGE INFOCOM's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -38 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -27 million from the Rs -13 million net cash flows seen during FY21.

COMPUAGE INFOCOM 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	-601	1,457	-
Cash Flow from Investing Activities	Rs m	176	-38	-
Cash Flow from Financing Activities	Rs m	412	-1,446	-
Net Cash Flow	Rs m	-13	-27	-

Current Valuations for COMPUAGE INFOCOM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.1, an improvement from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23.8, stands at 4.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	574.0	647.5
TTM Earnings per share	Rs	3.2	4.1
Diluted earnings per share	Rs	3.2	4.1
Price to Cash Flow	x	4.9	6.6
TTM P/E ratio	x	5.8	4.8
Price / Book Value ratio	x	0.4	0.8
Market Cap	Rs m	946	2,005
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for COMPUAGE INFOCOM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.3x 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 1.5x during FY22, from 1.4x 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 improved and stood at 10.8% during FY22, from 9.3% 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 improved and stood at 37.6% during FY22, from 31.0% 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 improved and stood at 8.6% during FY22, from 7.4% 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	1.3	1.3
Debtors’ Days	Days	543	452
Interest coverage	x	1.4	1.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.4	8.6
Return on equity	%	9.3	10.8
Return on capital employed	%	31.0	37.6

To see how COMPUAGE INFOCOM has performed over the last 5 years, please visit here.

COMPUAGE INFOCOM Share Price Performance

Over the last one year, COMPUAGE INFOCOM share price has moved down from Rs 25.7 to Rs 23.8, registering a loss of Rs 2.0 or around 7.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,452.1 (down 0.2%). Over the last one year it has moved down from 33,685.3 to 29,452.1, a loss of 4,233 points (down 12.6%).

Overall, the S&P BSE SENSEX is up 6.4% over the year.

(To know more, check out historical annual results for COMPUAGE INFOCOM and quarterly results for COMPUAGE INFOCOM)