CL EDUCATE 2023-24 Annual Report Analysis

Wed, 28 Aug

CL EDUCATE has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CL EDUCATE Income Statement Analysis

• Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.3% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 5.0% and finance costs increased by 48.8% YoY, respectively.
• Other income grew by 87.5% YoY.
• Net profit for the year declined by 57.1% YoY.
• Net profit margins during the year declined from 7.7% in FY23 to 3.3% in FY24.

CL EDUCATE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,913	2,920	0.2%
Other income	Rs m	64	120	87.5%
Total Revenues	Rs m	2,977	3,040	2.1%
Gross profit	Rs m	251	155	-38.2%
Depreciation	Rs m	112	117	5.0%
Interest	Rs m	16	24	48.8%
Profit before tax	Rs m	188	134	-28.4%
Tax	Rs m	-38	38	NA
Profit after tax	Rs m	225	97	-57.1%
Gross profit margin	%	8.6	5.3
Effective tax rate	%	-20.2	28.0
Net profit margin	%	7.7	3.3

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CL EDUCATE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 863 million as compared to Rs 865 million in FY23, thereby witnessing an decrease of -0.2%.
• Long-term debt stood at Rs 9 million as compared to Rs 7 million during FY23, a growth of 31.8%.
• Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 0% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 1%.

CL EDUCATE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,740	2,675	-2.4
Current Liabilities	Rs m	865	863	-0.2
Long-term Debt	Rs m	7	9	31.8
Total Liabilities	Rs m	3,541	3,579	1.1
Current assets	Rs m	1,945	2,111	8.5
Fixed Assets	Rs m	1,464	1,469	0.3
Total Assets	Rs m	3,541	3,579	1.1

CL EDUCATE Cash Flow Statement Analysis

• CL EDUCATE's cash flow from operating activities (CFO) during FY24 stood at Rs 183 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 12 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -68 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 127 million from the Rs 98 million net cash flows seen during FY23.

CL EDUCATE Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	243	183	-24.8%
Cash Flow from Investing Activities	Rs m	76	12	-84.2%
Cash Flow from Financing Activities	Rs m	-221	-68	-
Net Cash Flow	Rs m	98	127	29.2%

Current Valuations for CL EDUCATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an decline from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 94.8, stands at 32.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	52.9	54.0
TTM Earnings per share	Rs	4.1	1.8
Diluted earnings per share	Rs	4.2	1.8
Price to Cash Flow	x	7.9	20.7
TTM P/E ratio	x	11.6	32.8
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	3,958	4,423
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CL EDUCATE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 2.2x during FY23. 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 6.6x during FY24, from 12.7x during FY23. 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 3.6% during FY24, from 8.2% during FY24. 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 5.9% during FY24, from 7.4% during FY23. 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 3.4% during FY24, from 6.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.2	2.4
Debtors’ Days	Days	872	824
Interest coverage	x	12.7	6.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.8	3.4
Return on equity	%	8.2	3.6
Return on capital employed	%	7.4	5.9

To see how CL EDUCATE has performed over the last 5 years, please visit here.

CL EDUCATE Share Price Performance

Over the last one year, CL EDUCATE share price has moved up from Rs 77.5 to Rs 94.8, registering a gain of Rs 17.3 or around 22.3%.

Overall, the S&P BSE SENSEX is up 26.0% over the year.

(To know more, check out historical annual results for CL EDUCATE and quarterly results for CL EDUCATE)