CAMS 2023-24 Annual Report Analysis

Tue, 11 Jun

CAMS 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.

CAMS Income Statement Analysis

• Operating income during the year rose 16.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 44.4% in FY24 as against 43.3% in FY23.
• Depreciation charges increased by 17.0% and finance costs increased by 8.0% YoY, respectively.
• Other income grew by 51.6% YoY.
• Net profit for the year grew by 23.3% YoY.
• Net profit margins during the year grew from 29.3% in FY23 to 30.9% in FY24.

CAMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,718	11,365	16.9%
Other income	Rs m	268	406	51.6%
Total Revenues	Rs m	9,986	11,772	17.9%
Gross profit	Rs m	4,212	5,049	19.9%
Depreciation	Rs m	603	705	17.0%
Interest	Rs m	76	82	8.0%
Profit before tax	Rs m	3,802	4,668	22.8%
Tax	Rs m	956	1,159	21.3%
Profit after tax	Rs m	2,846	3,510	23.3%
Gross profit margin	%	43.3	44.4
Effective tax rate	%	25.1	24.8
Net profit margin	%	29.3	30.9

Don't Miss: Key Information for Long-term Investors

CAMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 80.0%.
• Current assets rose 36% and stood at Rs 10 billion, while fixed assets rose 14% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 29%.

CAMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,293	8,607	18.0
Current Liabilities	Rs m	1,700	3,059	80.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,874	14,005	28.8
Current assets	Rs m	7,304	9,942	36.1
Fixed Assets	Rs m	3,570	4,063	13.8
Total Assets	Rs m	10,874	14,005	28.8

CAMS Cash Flow Statement Analysis

• CAMS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 26.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 84.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -97 million from the Rs 119 million net cash flows seen during FY23.

CAMS 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	3,185	4,015	26.1%
Cash Flow from Investing Activities	Rs m	-1,017	-1,876	-
Cash Flow from Financing Activities	Rs m	-2,049	-2,236	-
Net Cash Flow	Rs m	119	-97	-

Current Valuations for CAMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 71.4, an improvement from the EPS of Rs 58.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,485.2, stands at 48.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.9 times, while the price to sales ratio stands at 15.1 times.
• The company's price to cash flow (P/CF) ratio stood at 30.6 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	198.4	231.3
TTM Earnings per share	Rs	58.1	71.4
Diluted earnings per share	Rs	57.9	71.3
Price to Cash Flow	x	29.0	30.6
TTM P/E ratio	x	35.1	48.8
Price / Book Value ratio	x	15.8	15.0
Market Cap	Rs m	114,917	128,939
Dividends per share (Unadj.)	Rs	37.8	46.5

Ratio Analysis for CAMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.2x during FY24, from 4.3x 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 improved and stood at 57.8x during FY24, from 51.0x 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 40.8% during FY24, from 39.0% 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 improved and stood at 55.2% during FY24, from 53.2% 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 25.6% during FY24, from 26.9% 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	4.3	3.2
Debtors’ Days	Days	124	208
Interest coverage	x	51.0	57.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	26.9	25.6
Return on equity	%	39.0	40.8
Return on capital employed	%	53.2	55.2

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

CAMS Share Price Performance

Over the last one year, CAMS share price has moved up from Rs 2,150.1 to Rs 3,485.2, registering a gain of Rs 1,335.1 or around 62.1%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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