CAMPUS ACTIVEWEAR 2023-24 Annual Report Analysis

Mon, 9 Sep

CAMPUS ACTIVEWEAR 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.

CAMPUS ACTIVEWEAR Income Statement Analysis

• Operating income during the year fell 2.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY24 as against 17.1% in FY23.
• Depreciation charges increased by 1.5% and finance costs decreased by 19.1% YoY, respectively.
• Other income grew by 65.1% YoY.
• Net profit for the year declined by 23.6% YoY.
• Net profit margins during the year declined from 7.9% in FY23 to 6.2% in FY24.

CAMPUS ACTIVEWEAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,843	14,483	-2.4%
Other income	Rs m	28	45	65.1%
Total Revenues	Rs m	14,870	14,528	-2.3%
Gross profit	Rs m	2,536	2,108	-16.9%
Depreciation	Rs m	710	721	1.5%
Interest	Rs m	287	232	-19.1%
Profit before tax	Rs m	1,566	1,200	-23.4%
Tax	Rs m	395	306	-22.5%
Profit after tax	Rs m	1,171	894	-23.6%
Gross profit margin	%	17.1	14.6
Effective tax rate	%	25.2	25.5
Net profit margin	%	7.9	6.2

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CAMPUS ACTIVEWEAR Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -38.5%.
• Long-term debt down at Rs 189 million as compared to Rs 257 million during FY23, a fall of 26.3%.
• Current assets fell 12% and stood at Rs 7 billion, while fixed assets rose 10% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 13 billion during FY23, thereby witnessing a fall of 4%.

CAMPUS ACTIVEWEAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,465	6,487	18.7
Current Liabilities	Rs m	5,007	3,078	-38.5
Long-term Debt	Rs m	257	189	-26.3
Total Liabilities	Rs m	12,613	12,095	-4.1
Current assets	Rs m	7,939	6,947	-12.5
Fixed Assets	Rs m	4,675	5,148	10.1
Total Assets	Rs m	12,613	12,095	-4.1

CAMPUS ACTIVEWEAR Cash Flow Statement Analysis

• CAMPUS ACTIVEWEAR's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 109.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -745 million, an improvement of 6.9% 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 -25 million from the Rs 236 million net cash flows seen during FY23.

CAMPUS ACTIVEWEAR 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	1,265	2,645	109.1%
Cash Flow from Investing Activities	Rs m	-697	-745	-
Cash Flow from Financing Activities	Rs m	-332	-1,925	-
Net Cash Flow	Rs m	236	-25	-

Current Valuations for CAMPUS ACTIVEWEAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 279.9, stands at 102.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.2 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 56.0 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	48.7	47.4
TTM Earnings per share	Rs	3.8	2.9
Diluted earnings per share	Rs	3.8	2.9
Price to Cash Flow	x	54.1	56.0
TTM P/E ratio	x	89.0	102.5
Price / Book Value ratio	x	26.1	13.9
Market Cap	Rs m	142,723	90,463
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CAMPUS ACTIVEWEAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 1.6x 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 6.2x during FY24, from 6.5x 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 13.8% during FY24, from 21.4% 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 21.5% during FY24, from 32.4% 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 9.3% during FY24, from 11.6% 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	1.6	2.3
Debtors’ Days	Days	4	3
Interest coverage	x	6.5	6.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	9.3
Return on equity	%	21.4	13.8
Return on capital employed	%	32.4	21.5

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

CAMPUS ACTIVEWEAR Share Price Performance

Over the last one year, CAMPUS ACTIVEWEAR share price has moved down from Rs 313.1 to Rs 279.9, registering a loss of Rs 33.2 or around 10.6%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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