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COROMANDEL ENG. 2022-23 Annual Report Analysis

Fri, 23 Jun

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

COROMANDEL ENG. Income Statement Analysis

• Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.0% in FY23 as against 1.3% in FY22.
• Depreciation charges decreased by 18.7% and finance costs decreased by 10.7% YoY, respectively.
• Other income grew by 28.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 6.0% in FY22 to 3.6% in FY23.

COROMANDEL ENG. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,330	1,265	-4.9%
Other income	Rs m	0	0	28.9%
Total Revenues	Rs m	1,330	1,266	-4.9%
Gross profit	Rs m	18	25	42.8%
Depreciation	Rs m	27	22	-18.7%
Interest	Rs m	47	42	-10.7%
Profit before tax	Rs m	-56	-39	NA
Tax	Rs m	23	7	-71.8%
Profit after tax	Rs m	-80	-45	NA
Gross profit margin	%	1.3	2.0
Effective tax rate	%	-41.2	-17.0
Net profit margin	%	-6.0	-3.6

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COROMANDEL ENG. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 555 million as compared to Rs 498 million in FY22, thereby witnessing an increase of 11.5%.
• Long-term debt stood at Rs 100 million as compared to Rs 88 million during FY22, a growth of 13.9%.
• Current assets rose 9% and stood at Rs 558 million, while fixed assets fell 19% and stood at Rs 71 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 629 million as against Rs 597 million during FY22, thereby witnessing a growth of 5%.

COROMANDEL ENG. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	124	79	-36.5
Current Liabilities	Rs m	498	555	11.5
Long-term Debt	Rs m	88	100	13.9
Total Liabilities	Rs m	597	629	5.3
Current assets	Rs m	509	558	9.5
Fixed Assets	Rs m	88	71	-19.1
Total Assets	Rs m	597	629	5.3

COROMANDEL ENG. Cash Flow Statement Analysis

• COROMANDEL ENG.'s cash flow from operating activities (CFO) during FY23 stood at Rs -71 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 13 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 59 million, an improvement of 128% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY22.

COROMANDEL ENG. Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	197	-71	-
Cash Flow from Investing Activities	Rs m	16	13	-21.4%
Cash Flow from Financing Activities	Rs m	-213	59	-
Net Cash Flow	Rs m	0	0	-

Current Valuations for COROMANDEL ENG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.4, an improvement from the EPS of Rs -2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.4, stands at -30.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.5 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at -52.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	40.0	38.1
TTM Earnings per share	Rs	-2.4	-1.4
Diluted earnings per share	Rs	-2.4	-1.4
Price to Cash Flow	x	-21.4	-52.9
TTM P/E ratio	x	-14.1	-30.5
Price / Book Value ratio	x	9.5	15.3
Market Cap	Rs m	1,177	1,206
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for COROMANDEL ENG.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.0x during FY22. 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 0.1x during FY23, from -0.2x during FY22. 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 -57.3% during FY23, from -64.3% during FY23. 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 2.0% during FY23, from -4.4% during FY22. 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 -0.5% during FY23, from -5.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	592	564
Interest coverage	x	-0.2	0.1
Debt to equity ratio	x	0.7	1.3
Return on assets	%	-5.4	-0.5
Return on equity	%	-64.3	-57.3
Return on capital employed	%	-4.4	2.0

To see how COROMANDEL ENG. has performed over the last 5 years, please visit here.

COROMANDEL ENG. Share Price Performance

Over the last one year, COROMANDEL ENG. share price has moved up from Rs 29.9 to Rs 41.4, registering a gain of Rs 11.6 or around 38.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,067.7 (down 0.3%). Over the last one year it has moved up from 3,042.2 to 4,067.7, a gain of 1,026 points (up 33.7%).

Overall, the S&P BSE SENSEX is up 20.1% over the year.

(To know more, check out historical annual results for COROMANDEL ENG. and quarterly results for COROMANDEL ENG.)