COSMO FERR. 2021-22 Annual Report Analysis

Wed, 8 Jun

COSMO FERR. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

COSMO FERR. Income Statement Analysis

• Operating income during the year rose 78.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 284.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.1% in FY22 as against 10.3% in FY21.
• Depreciation charges decreased by 0.9% and finance costs increased by 18.2% YoY, respectively.
• Other income grew by 30.7% YoY.
• Net profit for the year grew by 687.8% YoY.
• Net profit margins during the year grew from 2.8% in FY21 to 12.5% in FY22.

COSMO FERR. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	637	1,138	78.8%
Other income	Rs m	13	17	30.7%
Total Revenues	Rs m	650	1,156	77.9%
Gross profit	Rs m	66	252	284.3%
Depreciation	Rs m	40	39	-0.9%
Interest	Rs m	34	41	18.2%
Profit before tax	Rs m	5	190	3,693.4%
Tax	Rs m	-13	47	-462.6%
Profit after tax	Rs m	18	142	687.8%
Gross profit margin	%	10.3	22.1
Effective tax rate	%	-261.4	25.0
Net profit margin	%	2.8	12.5

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COSMO FERR. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 581 million as compared to Rs 549 million in FY21, thereby witnessing an increase of 5.8%.
• Long-term debt stood at Rs 158 million as compared to Rs 79 million during FY21, a growth of 101.0%.
• Current assets rose 99% and stood at Rs 479 million, while fixed assets rose 11% and stood at Rs 607 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 790 million during FY21, thereby witnessing a growth of 37%.

COSMO FERR. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	156	299	91.6
Current Liabilities	Rs m	549	581	5.8
Long-term Debt	Rs m	79	158	101.0
Total Liabilities	Rs m	790	1,086	37.5
Current assets	Rs m	241	479	98.9
Fixed Assets	Rs m	549	607	10.6
Total Assets	Rs m	790	1,086	37.5

COSMO FERR. Cash Flow Statement Analysis

• COSMO FERR.'s cash flow from operating activities (CFO) during FY22 stood at Rs 153 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -151 million, an improvement of 1,047.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 7 million from the Rs -1 million net cash flows seen during FY21.

COSMO FERR. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-43	153	-
Cash Flow from Investing Activities	Rs m	-13	-151	-
Cash Flow from Financing Activities	Rs m	55	5	-90.4%
Net Cash Flow	Rs m	-1	7	-

Current Valuations for COSMO FERR.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.8, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 585.0, stands at 49.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.6 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 21.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	52.9	94.6
TTM Earnings per share	Rs	1.5	11.8
Diluted earnings per share	Rs	1.5	11.8
Price to Cash Flow	x	3.7	21.6
TTM P/E ratio	x	11.7	49.5
Price / Book Value ratio	x	1.1	13.1
Market Cap	Rs m	167	3,920
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for COSMO FERR.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY22, from 0.4x during FY21. 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 5.7x during FY22, from 1.1x during FY21. 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 47.6% during FY22, from 11.6% during FY22. 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 50.4% during FY22, from 16.8% during FY21. 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 16.8% during FY22, from 6.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.4	0.8
Debtors’ Days	Days	513	541
Interest coverage	x	1.1	5.7
Debt to equity ratio	x	0.5	0.5
Return on assets	%	6.6	16.8
Return on equity	%	11.6	47.6
Return on capital employed	%	16.8	50.4

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

COSMO FERR. Share Price Performance

Over the last one year, COSMO FERR. share price has moved up from Rs 26.0 to Rs 585.0, registering a gain of Rs 559.0 or around 2150.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,763.0 (up 0.7%). Over the last one year it has moved up from 23,366.4 to 26,763.0, a gain of 3,397 points (up 14.5%).

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

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