COSMO FILMS 2020-21 Annual Report Analysis

Wed, 31 Mar

COSMO FILMS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

COSMO FILMS Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY21 as against 11.8% in FY20.
• Depreciation charges decreased by 9.0% and finance costs decreased by 20.7% YoY, respectively.
• Other income grew by 93.9% YoY.
• Net profit for the year grew by 108.8% YoY.
• Net profit margins during the year grew from 5.1% in FY20 to 10.4% in FY21.

COSMO FILMS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	22,035	22,852	3.7%
Other income	Rs m	195	377	93.9%
Total Revenues	Rs m	22,230	23,229	4.5%
Gross profit	Rs m	2,610	3,919	50.2%
Depreciation	Rs m	651	592	-9.0%
Interest	Rs m	526	417	-20.7%
Profit before tax	Rs m	1,628	3,287	101.9%
Tax	Rs m	494	918	85.9%
Profit after tax	Rs m	1,134	2,369	108.8%
Gross profit margin	%	11.8	17.1
Effective tax rate	%	30.3	27.9
Net profit margin	%	5.1	10.4

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COSMO FILMS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 11.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 5.0%.
• Current assets rose 27% and stood at Rs 10 billion, while fixed assets rose 0% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 21 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 11%.

COSMO FILMS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,347	8,495	15.6
Current Liabilities	Rs m	6,901	7,664	11.0
Long-term Debt	Rs m	3,553	3,376	-5.0
Total Liabilities	Rs m	19,053	21,204	11.3
Current assets	Rs m	7,812	9,919	27.0
Fixed Assets	Rs m	11,240	11,285	0.4
Total Assets	Rs m	19,053	21,204	11.3

COSMO FILMS Cash Flow Statement Analysis

• COSMO FILMS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 39.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 370 million from the Rs -308 million net cash flows seen during FY20.

COSMO FILMS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,404	3,355	39.6%
Cash Flow from Investing Activities	Rs m	-1,057	-1,050	-
Cash Flow from Financing Activities	Rs m	-1,654	-1,935	-
Net Cash Flow	Rs m	-308	370	-

Current Valuations for COSMO FILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 130.4, an improvement from the EPS of Rs 58.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 620.1, stands at 4.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 2.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	1,133.5	1,257.7
TTM Earnings per share	Rs	58.4	130.4
Diluted earnings per share	Rs	62.4	130.4
Price to Cash Flow	x	2.1	2.8
TTM P/E ratio	x	3.3	4.8
Price / Book Value ratio	x	0.7	1.0
Market Cap	Rs m	5,281	8,185
Dividends per share (Unadj.)	Rs	15.0	25.0

Ratio Analysis for COSMO FILMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.1x during FY20. 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 8.9x during FY21, from 4.1x during FY20. 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 27.9% during FY21, from 15.4% during FY21. 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 31.2% during FY21, from 19.8% during FY20. 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 13.1% during FY21, from 8.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.3
Debtors’ Days	Days	3	3
Interest coverage	x	4.1	8.9
Debt to equity ratio	x	0.5	0.4
Return on assets	%	8.7	13.1
Return on equity	%	15.4	27.9
Return on capital employed	%	19.8	31.2

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

COSMO FILMS Share Price Performance

Over the last one year, COSMO FILMS share price has moved up from Rs 208.5 to Rs 620.1, registering a gain of Rs 411.6 or around 197.4%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of COSMO FIRST