CAPRIHANS 2022-23 Annual Report Analysis

Thu, 26 Oct

CAPRIHANS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CAPRIHANS Income Statement Analysis

• Operating income during the year rose 17.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 220.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY23 as against 7.3% in FY22.
• Depreciation charges decreased by 2.3% and finance costs decreased by 13.2% YoY, respectively.
• Other income grew by 6.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 5.0% in FY22 to 7.7% in FY23.

CAPRIHANS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,983	9,364	17.3%
Other income	Rs m	105	112	6.1%
Total Revenues	Rs m	8,089	9,476	17.2%
Gross profit	Rs m	584	1,870	220.2%
Depreciation	Rs m	341	333	-2.3%
Interest	Rs m	686	595	-13.2%
Profit before tax	Rs m	-337	1,053	NA
Tax	Rs m	58	336	474.2%
Profit after tax	Rs m	-396	718	NA
Gross profit margin	%	7.3	20.0
Effective tax rate	%	-17.3	31.9
Net profit margin	%	-5.0	7.7

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CAPRIHANS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -48.3%.
• Long-term debt stood at Rs 5 billion as compared to Rs 5 billion during FY22, a growth of 0.3%.
• Current assets fell 21% and stood at Rs 3 billion, while fixed assets rose 140% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 67%.

CAPRIHANS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-3,050	5,392	NA
Current Liabilities	Rs m	6,120	3,161	-48.3
Long-term Debt	Rs m	5,293	5,309	0.3
Total Liabilities	Rs m	8,532	14,215	66.6
Current assets	Rs m	3,892	3,094	-20.5
Fixed Assets	Rs m	4,639	11,121	139.7
Total Assets	Rs m	8,532	14,215	66.6

CAPRIHANS Cash Flow Statement Analysis

• CAPRIHANS's cash flow from operating activities (CFO) during FY23 stood at Rs -529 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -380 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 890 million, an improvement of 683% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -19 million from the Rs -44 million net cash flows seen during FY22.

CAPRIHANS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	95	-529	-
Cash Flow from Investing Activities	Rs m	13	-380	-
Cash Flow from Financing Activities	Rs m	-153	890	-
Net Cash Flow	Rs m	-44	-19	-

Current Valuations for CAPRIHANS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.7, an improvement from the EPS of Rs -30.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 209.0, stands at 3.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	608.0	713.2
TTM Earnings per share	Rs	-30.1	54.7
Diluted earnings per share	Rs	-30.1	54.6
Price to Cash Flow	x	-29.4	1.6
TTM P/E ratio	x	35.8	3.1
Price / Book Value ratio	x	-0.6	0.3
Market Cap	Rs m	1,681	1,731
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CAPRIHANS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 0.6x during FY22. 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 2.8x during FY23, from 0.5x during FY22. 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 13.3% during FY23, from 13.0% during FY23. 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 15.4% during FY23, from 15.5% during FY22. 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 9.2% during FY23, from 3.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.6	1.0
Debtors’ Days	Days	936	707
Interest coverage	x	0.5	2.8
Debt to equity ratio	x	-1.7	1.0
Return on assets	%	3.4	9.2
Return on equity	%	13.0	13.3
Return on capital employed	%	15.5	15.4

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

CAPRIHANS Share Price Performance

Over the last one year, CAPRIHANS share price has moved up from Rs 132.0 to Rs 209.0, registering a gain of Rs 77.1 or around 58.4%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

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