FOSECO INDIA 2022-23 Annual Report Analysis

Wed, 22 May

FOSECO INDIA has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

FOSECO INDIA Income Statement Analysis

• Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in CY23 as against 15.3% in CY22.
• Depreciation charges decreased by 12.5% and finance costs increased by 24.3% YoY, respectively.
• Other income grew by 166.8% YoY.
• Net profit for the year grew by 58.8% YoY.
• Net profit margins during the year grew from 11.3% in CY22 to 15.3% in CY23.

FOSECO INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	4,067	4,774	17.4%
Other income	Rs m	81	215	166.8%
Total Revenues	Rs m	4,148	4,989	20.3%
Gross profit	Rs m	623	816	31.0%
Depreciation	Rs m	89	78	-12.5%
Interest	Rs m	2	2	24.3%
Profit before tax	Rs m	613	952	55.1%
Tax	Rs m	154	222	44.3%
Profit after tax	Rs m	460	730	58.8%
Gross profit margin	%	15.3	17.1
Effective tax rate	%	25.0	23.3
Net profit margin	%	11.3	15.3

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

FOSECO INDIA Balance Sheet Analysis

• The company's current liabilities during CY23 stood at Rs 1 billion as compared to Rs 1 billion in CY22, thereby witnessing an increase of 24.7%.
• Current assets rose 22% and stood at Rs 4 billion, while fixed assets rose 22% and stood at Rs 432 million in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 4 billion as against Rs 3 billion during CY22, thereby witnessing a growth of 22%.

FOSECO INDIA Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	2,381	2,851	19.7
Current Liabilities	Rs m	1,051	1,311	24.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,418	4,159	21.7
Current assets	Rs m	3,065	3,727	21.6
Fixed Assets	Rs m	353	432	22.2
Total Assets	Rs m	3,418	4,159	21.7

FOSECO INDIA Cash Flow Statement Analysis

• FOSECO INDIA's cash flow from operating activities (CFO) during CY23 stood at Rs 571 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -125 million, an improvement of 303.8% on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -257 million on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs 189 million from the Rs 395 million net cash flows seen during CY22.

FOSECO INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	587	571	-2.8%
Cash Flow from Investing Activities	Rs m	-31	-125	-
Cash Flow from Financing Activities	Rs m	-161	-257	-
Net Cash Flow	Rs m	395	189	-52.2%

Current Valuations for FOSECO INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 114.2, an improvement from the EPS of Rs 71.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,821.8, stands at 33.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 23.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	636.5	747.1
TTM Earnings per share	Rs	71.9	114.2
Diluted earnings per share	Rs	72.0	114.3
Price to Cash Flow	x	22.4	23.7
TTM P/E ratio	x	26.7	33.4
Price / Book Value ratio	x	4.5	6.7
Market Cap	Rs m	10,763	19,110
Dividends per share (Unadj.)	Rs	40.0	25.0

Ratio Analysis for FOSECO INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during CY23, from 2.9x during CY22. 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 454.1x during CY23, from 363.9x during CY22. 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 25.6% during CY23, from 19.3% during CY23. 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 33.4% during CY23, from 25.8% during CY22. 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 17.6% during CY23, from 13.5% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	2.9	2.8
Debtors’ Days	Days	764	776
Interest coverage	x	363.9	454.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.5	17.6
Return on equity	%	19.3	25.6
Return on capital employed	%	25.8	33.4

To see how FOSECO INDIA has performed over the last 5 years, please visit here.

FOSECO INDIA Share Price Performance

Over the last one year, FOSECO INDIA share price has moved up from Rs 1,380.5 to Rs 2,196.4, registering a gain of Rs 815.9 or around 59.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for FOSECO INDIA and quarterly results for FOSECO INDIA)