COSMO FIRST 2022-23 Annual Report Analysis

Tue, 31 Oct

COSMO FIRST 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.

COSMO FIRST Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY23 as against 18.8% in FY22.
• Depreciation charges increased by 18.4% and finance costs increased by 39.3% YoY, respectively.
• Other income grew by 9.6% YoY.
• Net profit for the year declined by 38.5% YoY.
• Net profit margins during the year declined from 13.1% in FY22 to 8.0% in FY23.

COSMO FIRST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,384	30,653	0.9%
Other income	Rs m	483	530	9.6%
Total Revenues	Rs m	30,867	31,182	1.0%
Gross profit	Rs m	5,714	3,814	-33.3%
Depreciation	Rs m	633	750	18.4%
Interest	Rs m	398	555	39.3%
Profit before tax	Rs m	5,166	3,039	-41.2%
Tax	Rs m	1,200	599	-50.1%
Profit after tax	Rs m	3,966	2,440	-38.5%
Gross profit margin	%	18.8	12.4
Effective tax rate	%	23.2	19.7
Net profit margin	%	13.1	8.0

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COSMO FIRST Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 16.8%.
• Long-term debt stood at Rs 5 billion as compared to Rs 5 billion during FY22, a growth of 14.0%.
• Current assets fell 3% and stood at Rs 13 billion, while fixed assets rose 29% and stood at Rs 18 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 31 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 13%.

COSMO FIRST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,841	12,856	8.6
Current Liabilities	Rs m	8,588	10,028	16.8
Long-term Debt	Rs m	4,797	5,466	14.0
Total Liabilities	Rs m	27,528	31,101	13.0
Current assets	Rs m	13,726	13,293	-3.2
Fixed Assets	Rs m	13,801	17,808	29.0
Total Assets	Rs m	27,528	31,101	13.0

COSMO FIRST Cash Flow Statement Analysis

• COSMO FIRST's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -127 million from the Rs -178 million net cash flows seen during FY22.

COSMO FIRST 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	4,812	4,652	-3.3%
Cash Flow from Investing Activities	Rs m	-4,474	-3,246	-
Cash Flow from Financing Activities	Rs m	-517	-1,533	-
Net Cash Flow	Rs m	-178	-127	-

Current Valuations for COSMO FIRST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 92.9, an decline from the EPS of Rs 218.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 638.1, stands at 10.2 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 8.1 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	1,672.2	1,167.7
TTM Earnings per share	Rs	218.3	92.9
Diluted earnings per share	Rs	151.1	92.9
Price to Cash Flow	x	6.6	8.1
TTM P/E ratio	x	7.6	10.2
Price / Book Value ratio	x	1.9	2.0
Market Cap	Rs m	22,686	25,943
Dividends per share (Unadj.)	Rs	35.0	5.0

Ratio Analysis for COSMO FIRST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.6x 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 deteriorated and stood at 6.5x during FY23, from 14.0x 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 declined and down at 19.0% during FY23, from 33.5% 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 declined and down at 19.6% during FY23, from 33.4% 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 declined and down at 9.6% during FY23, from 15.9% 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	1.6	1.3
Debtors’ Days	Days	3	2
Interest coverage	x	14.0	6.5
Debt to equity ratio	x	0.4	0.4
Return on assets	%	15.9	9.6
Return on equity	%	33.5	19.0
Return on capital employed	%	33.4	19.6

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

COSMO FIRST Share Price Performance

Over the last one year, COSMO FIRST share price has moved down from Rs 732.7 to Rs 638.1, registering a loss of Rs 94.6 or around 12.9%.

Overall, the S&P BSE SENSEX is up 7.0% over the year.

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