RATING

RECOMMENDATION

Sell

  • Capgemini Technology Service
  • ₹13,250.00

  • PLACE ORDER
  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Sell

Business Type

Near Leader

RATING

RECOMMENDATION

Sell

Business Type

Near Leader

  • Capgemini Growth

Get detailed information about the Capgemini Share Price. In this research report, you will get to know about Capgemini unlisted share price data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Capgemini Revenue Growth

Growth in %

  • 14.58%

    1 Year

  • 10.87%

    3 Year

  • 10.13%

    5 Year

  • The company revenue has increased to Rs. 18,045 cr. in FY21 from Rs. 15.749 cr., showcasing a rise of 15% year on year (y-o-y). This was due to an increase in the Time & Material contract (invoice based on time and materials) by 15% in FY21 and the Fixed price contract (invoice based on the-determined service and @ fixed price) by 268% in FY21 due to the rapid introduction of IT technologies in major sectors such as telecom BFSI and more. The company also generate an income of Rs. 8 cr. from sales of products in FY21

Capgemini Net Profit Growth(PAT)

Growth in %

  • 1.80%

    1 Year

  • 5.78%

    3 Year

  • -4.88%

    5 Year

The company's profit after tax has grown from Rs.1,657 cr. in FY20 to Rs.1,690 cr. in FY21, showcasing an increase of 2%. The revenue per expense has decreased from 1.12 in FY20 to 1.10 in FY21. The mere increase in profit is because the company's expense on employees' salaries, bonuses, etc., has increased by Rs. 2,352 cr. in FY21, and the depreciation expenses increased by Rs.147 cr. In FY16 company received a deferred tax credit of INR 1,125Cr, which increased the profit after tax.

Capgemini EPS Growth

Growth in %

  • 1.80%

    1 Year

  • 5.78%

    3 Year

  • -4.88%

    5 Year

The company's EPS has shown an increase of 2% in FY21 over FY20. There is only a minor increase in EPS even though the revenue has increased by 15% annually. This is because the company's expense on employees' salaries, bonuses, etc., has increased by 23%, and the depreciation has increased by 21%, impacting PAT and EPS growth. There was no change in the shares outstanding, and it remained constant at 5,91,39,500.

  • Capgemini Book Value Growth

Growth in %

  • 4.88%

    1 Year

  • 11.19%

    3 Year

  • 13.38%

    4 Year

The company's book value has increased by 5% y-o-y because it has expanded its security premium, capital redemption reserves, and share base payment reserves by Rs. 49 cr., Rs.348 cr., and Rs. 194 cr. respectively in FY21. These were increased based on additional pursuant to the business combination and employee stock compensation classified as equity awards.

Capgemini EBITDA Growth

Growth in %

  • 11.29%

    1 Year

  • 13.74%

    3 Year

  • 18.62%

    5 Year

The EBITDA margin has increased by 11% in FY21 compared to FY20. The gap in EBITDA growth and revenue growth is due to increasing employee benefits expenses for FY21. A significant rise was seen in salaries, bonuses & incentives, contribution to provident & other funds,  retirement benefits expenses, and employee stock compensation expense with Rs. 2,172 cr., Rs.103 cr. , Rs. 53 cr. and Rs. 40 cr. respectively. The expense on the employees was done.

Capgemini Operating Profit Growth

Growth in %

  • 8.53%

    1 Year

  • 11.18%

    3 Year

  • 19.72%

    5 Year

The company's operating profit was Rs. 2,707 cr. in FY21 compared to Rs. 2,494 cr. in FY20.  Since the company has acquired an additional Rs. 500 cr. of computers as well as Rs. 100 cr. of office equipment, the depreciation expenses of the company have increased by approximately Rs. 150 cr. in FY21 over FY20. This led to a decrease in EBIT in comparison to revenue growth in FY21.

Capgemini Asset Growth

Growth in %

  • 2.92%

    1 Year

  • 11.46%

    3 Year

  • 13.35%

    5 Year

The company's assets grew by approximately Rs. 475 cr. in FY21 over FY20. This growth is due to the company's increase in goodwill, which is because of the acquisition of Aricent Technologies holdings and Solcen Technologies in FY21. The company acquired 128,906,056 shares in Aricent Technologies at a rate of Rs. 333.72 per share, which was 98.25% stake, and 10,000 shares in Solcen Technologies Private Limited, which was a 100% stake for a rate of Rs 53,584.89 per share.

Capgemini Cash Flow from Operations

Growth in %

  • 81.06%

    1 Year

  • 25.10%

    3 Year

  • 18.95%

    5 Year

The cash flow from operations has increased by 81% approX. in FY21 over FY20. This massive increase is due to the rise in depreciation and employee expense costs by 23% and 21%, respectively, in FY21. The net working capital also contributed to the rise in CFO as there was an increase in current provisions and other current liabilities by Rs. 211 cr. and Rs. 66 cr. respectively and a fall in non-current assets of Rs. 356 cr. because of a decrease in balance with government authorities & unbilled revenue and a reduction in other financial assets by Rs. 171 cr. in, FY21which was an impact of decrease in security deposits, export incentives, and interest accrued on fixed deposits.

  • Capgemini Solvency Ratios

Capgemini D/E Ratio

The company's total debt to equity ratio has increased substantially by 98% in FY21 over FY20. This increase is attributable only to the increase in short-term lease liabilities by 45% in FY21, since the company has no short or long-term borrowings. Although, in absolute terms debt to equity ratio is 0.07, which shows a positive sign for the solvency position altogether.

Capgemini Current Ratio

The company's current ratio has declined by 6.4% in FY21 over FY20. This decrease is due to a decrease in the company's existing assets, which is due to a reduction in current investments of the company as the company had redeemed mutual funds worth Rs. 680 cr. in FY21. Also, the company's current liabilities have increased by Rs. 585 cr. in FY21 over FY20, which is due to an increase of Rs. 100 cr. of statutory dues payable and Rs. 250 cr. of provisions in FY21.

Capgemini Quick Ratio

Capgemini Interest Coverage Ratio

The company's interest coverage ratio has decreased by 12.7% in FY21 over FY20. This is because the company's interest on lease obligations has increased by approximately Rs. 20 cr. At the same time, the EBIT increased by Rs. 200 cr. in FY21, which is attributable to the company's revenue increase in FY21.

  • Capgemini Operating Efficiency

Capgemini Operating Profit EBIT Margin(OPM)

The EBIT margin of the company has decreased by 6.7% in FY21 over FY20. This is because depreciation charges increased roughly Rs.150 cr. in FY21 over FY20 due to the company's acquisition of an extra INR 500 Cr of computers and Rs. 100 cr. of office equipment. On the other hand, the company's revenue showed a significant increase of Rs. 2,500 cr. in FY'21 over FY20, which has caused the EBIT margin to decline.

Capgemini Profit Before Tax Margin (PBT Margin)


Capgemini Profit After Tax Margin (PAT Margin)

The PAT margin of the company has decreased by 12.3% in FY21 over FY20. This is because the company's salary, bonus, and other personnel expenses increased by roughly Rs. 2,400 cr. in FY21, while depreciation expenses climbed by approximately Rs. 150 cr. whereas the revenue from operations increased by Rs. 2,500 cr. approximately. Along with this, the tax expenses of the company have increased by Rs. 160 cr. approximately in FY21 over FY20. This has resulted in the PAT margin declining.

  • Capgemini Profitablity Ratio

Capgemini Return on Equity(RoE)

ROE of the company in FY21 has witnessed a fall of 3% in FY21 from FY20. As per Dupont Analysis, the asset turnover ratio and equity Multiplier   drove an overall increase in the ROE, both have witnessed a growth of 7% and 3 % respectively. Net income margin has witnessed a fall of 12% in FY21 from FY20, the reason being the increase in operating expenses, depreciation, employee expense and tax expense in FY21 .  Overall, the equity multiplier and asset turnover ratio have increased due to the acquisition of two companies by Capgemini Service Technologies India in FY21 with increased goodwill by 1743%. 

Capgemini Return on Capital Employed(RoCE)


Capgemini Return to Assets (RoA)

The ROA showed a decline of 6% in FY21 over FY20. The company's assets grew by approximately Rs. 475 cr. in FY21 over FY20 which is mainly attributable to the increase in goodwill due to the acquisition of ATHL and STPL during the year as well as trade receivables of the company whereas the net income of the company only increased by Rs.33 cr. in FY21 over FY20. The reduced profitability of the company in the current year has resulted in the ROA declining.

  • Capgemini Valuation Ratios

Capgemini Earning Yield