COCHIN SHIPYARD 2021-22 Annual Report Analysis

Mon, 12 Sep

COCHIN SHIPYARD 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.

COCHIN SHIPYARD Income Statement Analysis

• Operating income during the year rose 13.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.6% in FY22 as against 26.1% in FY21.
• Depreciation charges increased by 16.4% and finance costs decreased by 8.8% YoY, respectively.
• Other income grew by 37.7% YoY.
• Net profit for the year declined by 7.3% YoY.
• Net profit margins during the year declined from 21.6% in FY21 to 17.7% in FY22.

COCHIN SHIPYARD Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	28,189	31,909	13.2%
Other income	Rs m	1,908	2,628	37.7%
Total Revenues	Rs m	30,097	34,538	14.8%
Gross profit	Rs m	7,354	6,260	-14.9%
Depreciation	Rs m	598	697	16.4%
Interest	Rs m	583	532	-8.8%
Profit before tax	Rs m	8,081	7,659	-5.2%
Tax	Rs m	1,995	2,020	1.3%
Profit after tax	Rs m	6,087	5,640	-7.3%
Gross profit margin	%	26.1	19.6
Effective tax rate	%	24.7	26.4
Net profit margin	%	21.6	17.7

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COCHIN SHIPYARD Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 35 billion as compared to Rs 29 billion in FY21, thereby witnessing an increase of 18.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY21, a fall of 0.0%.
• Current assets rose 15% and stood at Rs 58 billion, while fixed assets rose 6% and stood at Rs 25 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 83 billion as against Rs 74 billion during FY21, thereby witnessing a growth of 12%.

COCHIN SHIPYARD Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	40,335	43,932	8.9
Current Liabilities	Rs m	29,374	34,655	18.0
Long-term Debt	Rs m	1,230	1,230	0.0
Total Liabilities	Rs m	73,989	82,986	12.2
Current assets	Rs m	50,558	58,197	15.1
Fixed Assets	Rs m	23,431	24,788	5.8
Total Assets	Rs m	73,989	82,986	12.2

COCHIN SHIPYARD Cash Flow Statement Analysis

• COCHIN SHIPYARD's cash flow from operating activities (CFO) during FY22 stood at Rs 14 billion, an improvement of 96.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 6.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 7 billion from the Rs -1 billion net cash flows seen during FY21.

COCHIN SHIPYARD 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	7,102	13,972	96.7%
Cash Flow from Investing Activities	Rs m	-4,431	-4,720	-
Cash Flow from Financing Activities	Rs m	-4,052	-2,389	-
Net Cash Flow	Rs m	-1,381	6,864	-

Current Valuations for COCHIN SHIPYARD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.9, an decline from the EPS of Rs 46.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 391.0, stands at 8.9 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 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	214.3	242.6
TTM Earnings per share	Rs	46.3	42.9
Diluted earnings per share	Rs	46.3	42.9
Price to Cash Flow	x	7.4	7.4
TTM P/E ratio	x	8.1	8.9
Price / Book Value ratio	x	1.1	1.1
Market Cap	Rs m	42,399	47,009
Dividends per share (Unadj.)	Rs	15.5	16.8

Ratio Analysis for COCHIN SHIPYARD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 1.7x 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 15.4x during FY22, from 14.9x 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 declined and down at 12.8% during FY22, from 15.1% 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 declined and down at 18.1% during FY22, from 20.8% 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 declined and down at 7.4% during FY22, from 9.0% 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	1.7	1.7
Debtors’ Days	Days	458	447
Interest coverage	x	14.9	15.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	7.4
Return on equity	%	15.1	12.8
Return on capital employed	%	20.8	18.1

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 368.5 to Rs 391.0, registering a gain of Rs 22.6 or around 6.1%.

Overall, the S&P BSE SENSEX is up 3.2% 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