COSMO FILMS 2021-22 Annual Report Analysis

Wed, 8 Jun

COSMO FILMS 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 FILMS Income Statement Analysis

• Operating income during the year rose 33.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY22 as against 17.1% in FY21.
• Depreciation charges increased by 6.9% and finance costs decreased by 4.5% YoY, respectively.
• Other income grew by 28.0% YoY.
• Net profit for the year grew by 67.4% YoY.
• Net profit margins during the year grew from 10.4% in FY21 to 13.1% in FY22.

COSMO FILMS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	22,852	30,384	33.0%
Other income	Rs m	377	483	28.0%
Total Revenues	Rs m	23,229	30,867	32.9%
Gross profit	Rs m	3,919	5,714	45.8%
Depreciation	Rs m	592	633	6.9%
Interest	Rs m	417	398	-4.5%
Profit before tax	Rs m	3,287	5,166	57.2%
Tax	Rs m	918	1,200	30.7%
Profit after tax	Rs m	2,369	3,966	67.4%
Gross profit margin	%	17.1	18.8
Effective tax rate	%	27.9	23.2
Net profit margin	%	10.4	13.1

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COSMO FILMS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 12.1%.
• Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY21, a growth of 42.1%.
• Current assets rose 38% and stood at Rs 14 billion, while fixed assets rose 23% and stood at Rs 14 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 28 billion as against Rs 21 billion during FY21, thereby witnessing a growth of 30%.

COSMO FILMS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,495	11,841	39.4
Current Liabilities	Rs m	7,664	8,588	12.1
Long-term Debt	Rs m	3,376	4,797	42.1
Total Liabilities	Rs m	21,204	27,528	29.8
Current assets	Rs m	9,944	13,726	38.0
Fixed Assets	Rs m	11,260	13,801	22.6
Total Assets	Rs m	21,204	27,528	29.8

COSMO FILMS Cash Flow Statement Analysis

• COSMO FILMS's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion, an improvement of 43.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 326.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -517 million, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -178 million from the Rs 370 million net cash flows seen during FY21.

COSMO FILMS 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	3,355	4,812	43.4%
Cash Flow from Investing Activities	Rs m	-1,050	-4,474	-
Cash Flow from Financing Activities	Rs m	-1,935	-517	-
Net Cash Flow	Rs m	370	-178	-

Current Valuations for COSMO FILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 218.3, an improvement from the EPS of Rs 130.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,784.5, stands at 8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	1,257.7	1,672.2
TTM Earnings per share	Rs	130.4	218.3
Diluted earnings per share	Rs	130.4	218.2
Price to Cash Flow	x	3.8	4.9
TTM P/E ratio	x	4.8	8.2
Price / Book Value ratio	x	1.0	1.9
Market Cap	Rs m	8,185	22,686
Dividends per share (Unadj.)	Rs	25.0	35.0

Ratio Analysis for COSMO FILMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.3x 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 14.0x during FY22, from 8.9x 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 33.5% during FY22, from 27.9% 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 33.4% during FY22, from 31.2% 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 15.9% during FY22, from 13.1% 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	1.3	1.6
Debtors’ Days	Days	3	3
Interest coverage	x	8.9	14.0
Debt to equity ratio	x	0.4	0.4
Return on assets	%	13.1	15.9
Return on equity	%	27.9	33.5
Return on capital employed	%	31.2	33.4

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 791.0 to Rs 1,784.5, registering a gain of Rs 993.6 or around 125.6%.

Overall, the S&P BSE SENSEX is up 5.5% 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