CAREER POINT 2023-24 Annual Report Analysis

Wed, 17 Jul

CAREER POINT 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.

CAREER POINT Income Statement Analysis

• Operating income during the year fell 27.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 140.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 58.6% in FY24 as against 17.7% in FY23.
• Depreciation charges decreased by 31.1% and finance costs decreased by 37.8% YoY, respectively.
• Other income grew by 50.4% YoY.
• Net profit for the year grew by 161.9% YoY.
• Net profit margins during the year grew from 14.1% in FY23 to 51.0% in FY24.

CAREER POINT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	865	626	-27.6%
Other income	Rs m	59	88	50.4%
Total Revenues	Rs m	924	715	-22.7%
Gross profit	Rs m	153	367	140.0%
Depreciation	Rs m	42	29	-31.1%
Interest	Rs m	19	12	-37.8%
Profit before tax	Rs m	152	415	174.0%
Tax	Rs m	30	96	223.7%
Profit after tax	Rs m	122	319	161.9%
Gross profit margin	%	17.7	58.6
Effective tax rate	%	19.6	23.1
Net profit margin	%	14.1	51.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

CAREER POINT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 365 million as compared to Rs 260 million in FY23, thereby witnessing an increase of 40.4%.
• Long-term debt stood at Rs 86 million as compared to Rs 86 million during FY23, a growth of 0.6%.
• Current assets fell 38% and stood at Rs 1 billion, while fixed assets rose 11% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 6 billion during FY23, thereby witnessing a fall of 5%.

CAREER POINT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,794	4,737	-1.2
Current Liabilities	Rs m	260	365	40.4
Long-term Debt	Rs m	86	86	0.6
Total Liabilities	Rs m	5,617	5,320	-5.3
Current assets	Rs m	1,925	1,201	-37.6
Fixed Assets	Rs m	3,692	4,115	11.5
Total Assets	Rs m	5,617	5,320	-5.3

CAREER POINT Cash Flow Statement Analysis

• CAREER POINT's cash flow from operating activities (CFO) during FY24 stood at Rs -305 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 161 million, an improvement of 267.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 143 million, an improvement of 240% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 0 million from the Rs -32 million net cash flows seen during FY23.

CAREER POINT 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	26	-305	-
Cash Flow from Investing Activities	Rs m	44	161	267.4%
Cash Flow from Financing Activities	Rs m	-102	143	-
Net Cash Flow	Rs m	-32	0	-

Current Valuations for CAREER POINT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.6, an improvement from the EPS of Rs 6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 458.2, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 13.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	47.6	34.4
TTM Earnings per share	Rs	6.7	17.6
Diluted earnings per share	Rs	6.7	17.6
Price to Cash Flow	x	23.9	12.1
TTM P/E ratio	x	32.3	14.6
Price / Book Value ratio	x	0.6	0.9
Market Cap	Rs m	2,978	4,209
Dividends per share (Unadj.)	Rs	1.0	3.0

Ratio Analysis for CAREER POINT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY24, from 7.4x 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 37.0x during FY24, from 9.2x 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 6.7% during FY24, from 2.5% 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 8.8% during FY24, from 3.5% 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 improved and stood at 6.2% during FY24, from 2.5% 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	7.4	3.3
Debtors’ Days	Days	602	84
Interest coverage	x	9.2	37.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.5	6.2
Return on equity	%	2.5	6.7
Return on capital employed	%	3.5	8.8

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

CAREER POINT Share Price Performance

Over the last one year, CAREER POINT share price has moved up from Rs 213.1 to Rs 458.2, registering a gain of Rs 245.2 or around 115.1%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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