COCHIN SHIPYARD 2022-23 Annual Report Analysis

Wed, 13 Sep

COCHIN SHIPYARD 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.

COCHIN SHIPYARD Income Statement Analysis

• Operating income during the year fell 25.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY23 as against 19.6% in FY22.
• Depreciation charges increased by 1.2% and finance costs decreased by 18.6% YoY, respectively.
• Other income declined by 21.2% YoY.
• Net profit for the year declined by 46.0% YoY.
• Net profit margins during the year declined from 17.7% in FY22 to 12.9% in FY23.

COCHIN SHIPYARD Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	31,909	23,646	-25.9%
Other income	Rs m	2,628	2,070	-21.2%
Total Revenues	Rs m	34,538	25,716	-25.5%
Gross profit	Rs m	6,243	3,236	-48.2%
Depreciation	Rs m	680	688	1.2%
Interest	Rs m	532	433	-18.6%
Profit before tax	Rs m	7,659	4,184	-45.4%
Tax	Rs m	2,020	1,137	-43.7%
Profit after tax	Rs m	5,640	3,047	-46.0%
Gross profit margin	%	19.6	13.7
Effective tax rate	%	26.4	27.2
Net profit margin	%	17.7	12.9

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COCHIN SHIPYARD Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 51 billion as compared to Rs 35 billion in FY22, thereby witnessing an increase of 47.9%.
• Long-term debt down at Rs 230 million as compared to Rs 1 billion during FY22, a fall of 81.7%.
• Current assets rose 22% and stood at Rs 71 billion, while fixed assets rose 13% and stood at Rs 28 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 99 billion as against Rs 83 billion during FY22, thereby witnessing a growth of 19%.

COCHIN SHIPYARD Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	43,932	44,276	0.8
Current Liabilities	Rs m	34,627	51,210	47.9
Long-term Debt	Rs m	1,258	230	-81.7
Total Liabilities	Rs m	82,986	99,164	19.5
Current assets	Rs m	58,408	71,366	22.2
Fixed Assets	Rs m	24,576	27,798	13.1
Total Assets	Rs m	82,986	99,164	19.5

COCHIN SHIPYARD Cash Flow Statement Analysis

• COCHIN SHIPYARD's cash flow from operating activities (CFO) during FY23 stood at Rs 19 billion, an improvement of 35.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -353 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 16 billion from the Rs 2 billion net cash flows seen during FY22.

COCHIN SHIPYARD 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	13,982	18,891	35.1%
Cash Flow from Investing Activities	Rs m	-10,070	-353	-
Cash Flow from Financing Activities	Rs m	-2,389	-2,761	-
Net Cash Flow	Rs m	1,523	15,777	935.9%

Current Valuations for COCHIN SHIPYARD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.2, an decline from the EPS of Rs 42.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,071.8, stands at 39.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 17.3 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	242.6	179.8
TTM Earnings per share	Rs	42.9	23.2
Diluted earnings per share	Rs	42.9	23.2
Price to Cash Flow	x	6.1	17.3
TTM P/E ratio	x	6.9	39.0
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	47,009	64,576
Dividends per share (Unadj.)	Rs	16.8	17.0

Ratio Analysis for COCHIN SHIPYARD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.7x 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 10.7x during FY23, from 15.4x 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 6.9% during FY23, from 12.8% 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 10.4% during FY23, from 18.1% 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 3.5% during FY23, from 7.4% 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	1.7	1.4
Debtors’ Days	Days	500	522
Interest coverage	x	15.4	10.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	3.5
Return on equity	%	12.8	6.9
Return on capital employed	%	18.1	10.4

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 387.8 to Rs 1,071.8, registering a gain of Rs 684.1 or around 176.4%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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