COCHIN SHIPYARD 2023-24 Annual Report Analysis

Thu, 12 Sep

COCHIN SHIPYARD 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.

COCHIN SHIPYARD Income Statement Analysis

• Operating income during the year rose 62.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 172.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.0% in FY24 as against 13.7% in FY23.
• Depreciation charges increased by 8.3% and finance costs increased by 6.8% YoY, respectively.
• Other income grew by 49.8% YoY.
• Net profit for the year grew by 157.1% YoY.
• Net profit margins during the year grew from 12.9% in FY23 to 20.4% in FY24.

COCHIN SHIPYARD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,646	38,305	62.0%
Other income	Rs m	2,070	3,102	49.8%
Total Revenues	Rs m	25,716	41,406	61.0%
Gross profit	Rs m	3,236	8,816	172.5%
Depreciation	Rs m	688	746	8.3%
Interest	Rs m	433	462	6.8%
Profit before tax	Rs m	4,184	10,709	155.9%
Tax	Rs m	1,137	2,877	152.9%
Profit after tax	Rs m	3,047	7,833	157.1%
Gross profit margin	%	13.7	23.0
Effective tax rate	%	27.2	26.9
Net profit margin	%	12.9	20.4

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COCHIN SHIPYARD Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 65 billion as compared to Rs 51 billion in FY23, thereby witnessing an increase of 27.5%.
• Long-term debt down at Rs 230 million as compared to Rs 230 million during FY23, a fall of 0.0%.
• Current assets rose 21% and stood at Rs 86 billion, while fixed assets rose 19% and stood at Rs 33 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 119 billion as against Rs 99 billion during FY23, thereby witnessing a growth of 20%.

COCHIN SHIPYARD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	44,276	50,033	13.0
Current Liabilities	Rs m	51,109	65,162	27.5
Long-term Debt	Rs m	230	230	0.0
Total Liabilities	Rs m	99,082	119,380	20.5
Current assets	Rs m	71,284	86,386	21.2
Fixed Assets	Rs m	27,798	32,994	18.7
Total Assets	Rs m	99,082	119,380	20.5

COCHIN SHIPYARD Cash Flow Statement Analysis

• COCHIN SHIPYARD'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 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -616 million from the Rs -1 billion net cash flows seen during FY23.

COCHIN SHIPYARD 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	18,765	-1,716	-
Cash Flow from Investing Activities	Rs m	-17,380	4,810	-
Cash Flow from Financing Activities	Rs m	-2,740	-3,710	-
Net Cash Flow	Rs m	-1,355	-616	-

Current Valuations for COCHIN SHIPYARD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.8, an improvement from the EPS of Rs 23.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,785.0, stands at 54.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.4 times, while the price to sales ratio stands at 12.3 times.
• The company's price to cash flow (P/CF) ratio stood at 18.1 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	179.8	145.6
TTM Earnings per share	Rs	23.2	29.8
Diluted earnings per share	Rs	11.6	29.8
Price to Cash Flow	x	16.8	18.1
TTM P/E ratio	x	20.5	54.7
Price / Book Value ratio	x	1.5	3.1
Market Cap	Rs m	64,576	154,951
Dividends per share (Unadj.)	Rs	8.5	9.8

Ratio Analysis for COCHIN SHIPYARD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 improved and stood at 24.2x during FY24, from 10.7x 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 improved and stood at 15.7% during FY24, from 6.9% 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 improved and stood at 22.2% during FY24, from 10.4% 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 improved and stood at 6.9% during FY24, from 3.5% 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	1.4	1.3
Debtors’ Days	Days	522	339
Interest coverage	x	10.7	24.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	6.9
Return on equity	%	6.9	15.7
Return on capital employed	%	10.4	22.2

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

COCHIN SHIPYARD Share Price Performance

Over the last one year, COCHIN SHIPYARD share price has moved up from Rs 532.9 to Rs 1,785.0, registering a gain of Rs 1,252.1 or around 234.9%.

Overall, the S&P BSE SENSEX is up 21.6% over the year.

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