COCHIN SHIPYARD 2020-21 Annual Report Analysis

Wed, 31 Mar

COCHIN SHIPYARD 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.

COCHIN SHIPYARD Income Statement Analysis

• Operating income during the year fell 17.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.1% in FY21 as against 20.8% in FY20.
• Depreciation charges increased by 22.3% and finance costs increased by 16.8% YoY, respectively.
• Other income declined by 22.1% YoY.
• Net profit for the year declined by 3.7% YoY.
• Net profit margins during the year grew from 18.5% in FY20 to 21.6% in FY21.

COCHIN SHIPYARD Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,225	28,189	-17.6%
Other income	Rs m	2,451	1,908	-22.1%
Total Revenues	Rs m	36,676	30,097	-17.9%
Gross profit	Rs m	7,115	7,354	3.4%
Depreciation	Rs m	489	598	22.3%
Interest	Rs m	499	583	16.8%
Profit before tax	Rs m	8,577	8,081	-5.8%
Tax	Rs m	2,257	1,995	-11.6%
Profit after tax	Rs m	6,320	6,087	-3.7%
Gross profit margin	%	20.8	26.1
Effective tax rate	%	26.3	24.7
Net profit margin	%	18.5	21.6

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COCHIN SHIPYARD Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 29 billion as compared to Rs 22 billion in FY20, thereby witnessing an increase of 36.2%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY20, a fall of 0.0%.
• Current assets rose 14% and stood at Rs 51 billion, while fixed assets rose 21% and stood at Rs 23 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 74 billion as against Rs 64 billion during FY20, thereby witnessing a growth of 16%.

COCHIN SHIPYARD Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	37,229	40,335	8.3
Current Liabilities	Rs m	21,561	29,374	36.2
Long-term Debt	Rs m	1,230	1,230	0.0
Total Liabilities	Rs m	63,597	73,989	16.3
Current assets	Rs m	44,291	50,558	14.2
Fixed Assets	Rs m	19,306	23,431	21.4
Total Assets	Rs m	63,597	73,989	16.3

COCHIN SHIPYARD Cash Flow Statement Analysis

• COCHIN SHIPYARD's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion, an improvement of 212.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 436.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs -2 billion net cash flows seen during FY20.

COCHIN SHIPYARD 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	2,527	7,895	212.5%
Cash Flow from Investing Activities	Rs m	-974	-5,224	-
Cash Flow from Financing Activities	Rs m	-3,091	-4,052	-
Net Cash Flow	Rs m	-1,538	-1,381	-

Current Valuations for COCHIN SHIPYARD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.3, an decline from the EPS of Rs 48.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 375.3, stands at 8.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.3 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	260.2	214.3
TTM Earnings per share	Rs	48.0	46.3
Diluted earnings per share	Rs	48.0	46.3
Price to Cash Flow	x	5.1	6.3
TTM P/E ratio	x	5.5	8.1
Price / Book Value ratio	x	1.2	1.1
Market Cap	Rs m	46,049	42,399
Dividends per share (Unadj.)	Rs	16.6	15.5

Ratio Analysis for COCHIN SHIPYARD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY21, from 2.1x 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 deteriorated and stood at 14.9x during FY21, from 18.2x 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 declined and down at 15.1% during FY21, from 17.0% 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 declined and down at 20.8% during FY21, from 23.6% 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 declined and down at 9.0% during FY21, from 10.7% 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	2.1	1.7
Debtors’ Days	Days	307	458
Interest coverage	x	18.2	14.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.7	9.0
Return on equity	%	17.0	15.1
Return on capital employed	%	23.6	20.8

To see how COCHIN SHIPYARD has performed over the last 5 years, please visit here.

COCHIN SHIPYARD Share Price Performance

Over the last one year, COCHIN SHIPYARD share price has moved up from Rs 264.3 to Rs 375.3, registering a gain of Rs 111.1 or around 42.0%.

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

(To know more, check out historical annual results for COCHIN SHIPYARD and quarterly results for COCHIN SHIPYARD)

Read: Latest Annual Report Analysis of COCHIN SHIPYARD