COSMO FIRST 2023-24 Annual Report Analysis

Thu, 11 Jul

COSMO FIRST 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.

COSMO FIRST 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 51.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 19.4% and finance costs increased by 61.2% YoY, respectively.
• Other income grew by 26.0% YoY.
• Net profit for the year declined by 74.5% YoY.
• Net profit margins during the year declined from 8.0% in FY23 to 2.4% in FY24.

COSMO FIRST Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	30,653	25,873	-15.6%
Other income	Rs m	539	680	26.0%
Total Revenues	Rs m	31,192	26,553	-14.9%
Gross profit	Rs m	3,804	1,833	-51.8%
Depreciation	Rs m	750	895	19.4%
Interest	Rs m	555	894	61.2%
Profit before tax	Rs m	3,039	724	-76.2%
Tax	Rs m	599	102	-83.0%
Profit after tax	Rs m	2,440	622	-74.5%
Gross profit margin	%	12.4	7.1
Effective tax rate	%	19.7	14.1
Net profit margin	%	8.0	2.4

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COSMO FIRST Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 16.0%.
• Long-term debt stood at Rs 7 billion as compared to Rs 5 billion during FY23, a growth of 24.5%.
• Current assets rose 4% and stood at Rs 14 billion, while fixed assets rose 18% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 35 billion as against Rs 31 billion during FY23, thereby witnessing a growth of 13%.

COSMO FIRST Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,856	13,304	3.5
Current Liabilities	Rs m	10,028	11,631	16.0
Long-term Debt	Rs m	5,466	6,805	24.5
Total Liabilities	Rs m	31,101	35,123	12.9
Current assets	Rs m	13,293	13,816	3.9
Fixed Assets	Rs m	17,808	21,098	18.5
Total Assets	Rs m	31,101	35,123	12.9

COSMO FIRST Cash Flow Statement Analysis

• COSMO FIRST's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -185 million, an improvement of 88% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -82 million from the Rs -127 million net cash flows seen during FY23.

COSMO FIRST 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	4,652	2,452	-47.3%
Cash Flow from Investing Activities	Rs m	-3,246	-2,349	-
Cash Flow from Financing Activities	Rs m	-1,533	-185	-
Net Cash Flow	Rs m	-127	-82	-

Current Valuations for COSMO FIRST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.7, an decline from the EPS of Rs 92.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 850.0, stands at 35.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.6 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	1,167.7	985.7
TTM Earnings per share	Rs	92.9	23.7
Diluted earnings per share	Rs	92.9	23.7
Price to Cash Flow	x	4.8	10.6
TTM P/E ratio	x	6.3	35.9
Price / Book Value ratio	x	2.0	1.2
Market Cap	Rs m	25,943	16,047
Dividends per share (Unadj.)	Rs	5.0	3.0

Ratio Analysis for COSMO FIRST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 1.8x 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 4.7% during FY24, from 19.0% 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 8.0% during FY24, from 19.6% 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 4.3% during FY24, from 9.6% 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	1.3	1.2
Debtors’ Days	Days	2	4
Interest coverage	x	6.5	1.8
Debt to equity ratio	x	0.4	0.5
Return on assets	%	9.6	4.3
Return on equity	%	19.0	4.7
Return on capital employed	%	19.6	8.0

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

COSMO FIRST Share Price Performance

Over the last one year, COSMO FIRST share price has moved up from Rs 661.3 to Rs 850.0, registering a gain of Rs 188.8 or around 28.5%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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