COOL CAPS INDUSTRIES LTD. 2023-24 Annual Report Analysis

Mon, 4 Nov

COOL CAPS INDUSTRIES LTD. 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.

COOL CAPS INDUSTRIES LTD. Income Statement Analysis

• Operating income during the year fell 15.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.0% in FY24 as against 7.7% in FY23.
• Depreciation charges increased by 14.5% and finance costs increased by 35.6% YoY, respectively.
• Other income grew by 458.7% YoY.
• Net profit for the year declined by 31.2% YoY.
• Net profit margins during the year declined from 3.1% in FY23 to 2.6% in FY24.

COOL CAPS INDUSTRIES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,816	1,533	-15.6%
Other income	Rs m	14	77	458.7%
Total Revenues	Rs m	1,830	1,610	-12.0%
Gross profit	Rs m	141	77	-45.5%
Depreciation	Rs m	31	35	14.5%
Interest	Rs m	46	62	35.6%
Profit before tax	Rs m	78	57	-27.4%
Tax	Rs m	21	17	-17.2%
Profit after tax	Rs m	57	39	-31.2%
Gross profit margin	%	7.7	5.0
Effective tax rate	%	26.9	30.6
Net profit margin	%	3.1	2.6

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COOL CAPS INDUSTRIES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 670 million as compared to Rs 540 million in FY23, thereby witnessing an increase of 24.0%.
• Long-term debt stood at Rs 730 million as compared to Rs 433 million during FY23, a growth of 68.7%.
• Current assets rose 13% and stood at Rs 699 million, while fixed assets rose 56% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 37%.

COOL CAPS INDUSTRIES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	360	429	19.0
Current Liabilities	Rs m	540	670	24.0
Long-term Debt	Rs m	433	730	68.7
Total Liabilities	Rs m	1,358	1,856	36.6
Current assets	Rs m	616	699	13.4
Fixed Assets	Rs m	742	1,157	56.0
Total Assets	Rs m	1,358	1,856	36.6

COOL CAPS INDUSTRIES LTD. Cash Flow Statement Analysis

• COOL CAPS INDUSTRIES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 57 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -401 million, an improvement of 7.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 350 million, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs -4 million net cash flows seen during FY23.

COOL CAPS INDUSTRIES LTD. 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	88	57	-34.9%
Cash Flow from Investing Activities	Rs m	-373	-401	-
Cash Flow from Financing Activities	Rs m	282	350	24.5%
Net Cash Flow	Rs m	-4	7	-

Current Valuations for COOL CAPS INDUSTRIES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an decline from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 800.0, stands at 235.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 21.6 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 72.2 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	157.1	132.6
TTM Earnings per share	Rs	4.9	3.4
Diluted earnings per share	Rs	4.9	3.4
Price to Cash Flow	x	0.0	72.2
TTM P/E ratio	x	0.0	235.3
Price / Book Value ratio	x	0.0	12.5
Market Cap	Rs m	0	5,375
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for COOL CAPS INDUSTRIES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 1.9x during FY24, from 2.7x 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 9.2% during FY24, from 15.9% 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 10.2% during FY24, from 15.6% 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 5.4% during FY24, from 7.6% 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	1.1	1.0
Debtors’ Days	Days	374	584
Interest coverage	x	2.7	1.9
Debt to equity ratio	x	1.2	1.7
Return on assets	%	7.6	5.4
Return on equity	%	15.9	9.2
Return on capital employed	%	15.6	10.2

To see how COOL CAPS INDUSTRIES LTD. has performed over the last 5 years, please visit here.

COOL CAPS INDUSTRIES LTD. Share Price Performance

Over the last one year, COOL CAPS INDUSTRIES LTD. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 1.3% over the year.

(To know more, check out historical annual results for COOL CAPS INDUSTRIES LTD. and quarterly results for COOL CAPS INDUSTRIES LTD.)