CENTRUM CAPITAL 2023-24 Annual Report Analysis

Wed, 10 Jul

CENTRUM CAPITAL 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.

CENTRUM CAPITAL Income Statement Analysis

• Operating income during the year fell 95.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 14.6% in FY24 as against 33.6% in FY23.
• Depreciation charges decreased by 95.6% and finance costs decreased by 85.0% YoY, respectively.
• Other income declined by 21.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 14.0% in FY23 to 96.0% in FY24.

CENTRUM CAPITAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,101	535	-95.9%
Other income	Rs m	554	437	-21.2%
Total Revenues	Rs m	13,655	972	-92.9%
Gross profit	Rs m	4,403	-78	NA
Depreciation	Rs m	380	17	-95.6%
Interest	Rs m	6,364	952	-85.0%
Profit before tax	Rs m	-1,786	-610	NA
Tax	Rs m	43	-97	NA
Profit after tax	Rs m	-1,829	-513	NA
Gross profit margin	%	33.6	-14.6
Effective tax rate	%	-2.4	15.8
Net profit margin	%	-14.0	-96.0

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CENTRUM CAPITAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 53 billion in FY23, thereby witnessing an decrease of -91.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 45 billion during FY23, a fall of 93.2%.
• Current assets fell 89% and stood at Rs 1 billion, while fixed assets fell 89% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 111 billion during FY23, thereby witnessing a fall of 89%.

CENTRUM CAPITAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,540	3,605	-34.9
Current Liabilities	Rs m	52,607	4,739	-91.0
Long-term Debt	Rs m	44,826	3,058	-93.2
Total Liabilities	Rs m	110,734	11,923	-89.2
Current assets	Rs m	10,771	1,202	-88.8
Fixed Assets	Rs m	99,877	10,721	-89.3
Total Assets	Rs m	110,734	11,923	-89.2

CENTRUM CAPITAL Cash Flow Statement Analysis

• CENTRUM CAPITAL's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -133 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -701 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 174 million from the Rs -38 billion net cash flows seen during FY23.

CENTRUM CAPITAL 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	-40,906	1,007	-
Cash Flow from Investing Activities	Rs m	1,423	-133	-
Cash Flow from Financing Activities	Rs m	971	-701	-
Net Cash Flow	Rs m	-38,367	174	-

Current Valuations for CENTRUM CAPITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.2, an improvement from the EPS of Rs -4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.7, stands at -23.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 30.9 times.
• The company's price to cash flow (P/CF) ratio stood at -24.7 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	31.5	1.3
TTM Earnings per share	Rs	-4.4	-1.2
Diluted earnings per share	Rs	-4.4	-1.2
Price to Cash Flow	x	-5.4	-24.7
TTM P/E ratio	x	-4.4	-23.2
Price / Book Value ratio	x	1.9	3.4
Market Cap	Rs m	10,288	12,252
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CENTRUM CAPITAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.3x during FY24, from 0.2x 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 0.4x during FY24, from 0.7x 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 improved and stood at -14.2% during FY24, from -33.0% 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 5.1% during FY24, from 9.1% 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 3.7% during FY24, from 4.1% 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	0.2	0.3
Debtors’ Days	Days	89	415
Interest coverage	x	0.7	0.4
Debt to equity ratio	x	8.1	0.8
Return on assets	%	4.1	3.7
Return on equity	%	-33.0	-14.2
Return on capital employed	%	9.1	5.1

To see how CENTRUM CAPITAL has performed over the last 5 years, please visit here.

CENTRUM CAPITAL Share Price Performance

Over the last one year, CENTRUM CAPITAL share price has moved up from Rs 20.4 to Rs 39.7, registering a gain of Rs 19.3 or around 95.0%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for CENTRUM CAPITAL and quarterly results for CENTRUM CAPITAL)