FOSECO INDIA 2019-20 Annual Report Analysis

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FOSECO INDIA 2019-20 Annual Report Analysis
Sat, 30 Oct

FOSECO INDIA has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

FOSECO INDIA Income Statement Analysis

  • Operating income during the year fell 22.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 53.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in CY20 as against 13.8% in CY19.
  • Depreciation charges increased by 40.8% and finance costs decreased by 19.9% YoY, respectively.
  • Other income declined by 29.9% YoY.
  • Net profit for the year declined by 55.3% YoY.
  • Net profit margins during the year declined from 10.4% in CY19 to 6.0% in CY20.

FOSECO INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Net Sales Rs m 3,225 2,512 -22.1%
Other income Rs m 95 66 -29.9%
Total Revenues Rs m 3,320 2,578 -22.4%
Gross profit Rs m 446 205 -53.9%
Depreciation Rs m 42 59 40.8%
Interest Rs m 2 2 -19.9%
Profit before tax Rs m 496 211 -57.5%
Tax Rs m 151 57 -62.6%
Profit after tax Rs m 345 154 -55.3%
Gross profit margin % 13.8 8.2
Effective tax rate % 30.4 26.8
Net profit margin % 10.4 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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FOSECO INDIA Balance Sheet Analysis

  • The company's current liabilities during CY20 stood at Rs 799 million as compared to Rs 765 million in CY19, thereby witnessing an increase of 4.4%.
  • Current assets rose 6% and stood at Rs 2 billion, while fixed assets rose 2% and stood at Rs 416 million in CY20.
  • Overall, the total assets and liabilities for CY20 stood at Rs 3 billion as against Rs 2 billion during CY19, thereby witnessing a growth of 6%.

FOSECO INDIA Balance Sheet as on December 2020

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Networth Rs m 1,714 1,826 6.6
 
Current Liabilities Rs m 765 799 4.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 2,468 2,605 5.5
 
Current assets Rs m 2,061 2,189 6.2
Fixed Assets Rs m 407 416 2.3
Total Assets Rs m 2,468 2,605 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FOSECO INDIA Cash Flow Statement Analysis

  • FOSECO INDIA's cash flow from operating activities (CFO) during CY20 stood at Rs 303 million on a YoY basis.
  • Cash flow from investing activities (CFI) during CY20 stood at Rs -19 million on a YoY basis.
  • Cash flow from financial activities (CFF) during CY20 stood at Rs -32 million, an improvement of 83% on a YoY basis.
  • Overall, net cash flows for the company during CY20 stood at Rs 252 million from the Rs 187 million net cash flows seen during CY19.

FOSECO INDIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Dec-19 Dec-20
Cash Flow from Operating Activities Rs m 468 303 -35.3%
Cash Flow from Investing Activities Rs m -89 -19 -
Cash Flow from Financing Activities Rs m -193 -32 -
Net Cash Flow Rs m 187 252 35.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FOSECO INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.2, an decline from the EPS of Rs 54.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,503.8, stands at 34.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 3.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 45.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Sales per share (Unadj.) Rs 504.7 393.0
TTM Earnings per share Rs 54.0 24.2
Diluted earnings per share Rs 54.1 24.2
Price to Cash Flow x 24.8 45.0
TTM P/E ratio x 34.5 34.5
Price / Book Value ratio x 5.4 4.4
Market Cap Rs m 9,604 9,604
Dividends per share (Unadj.) Rs 25.0 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FOSECO INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.7x during CY20, from 2.7x during CY19. 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 125.8x during CY20, from 236.2x during CY19. 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 8.5% during CY20, from 20.1% during CY20. 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 11.6% during CY20, from 29.1% during CY19. 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 6.0% during CY20, from 14.1% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Current ratio x 2.7 2.7
Debtors’ Days Days 82 94
Interest coverage x 236.2 125.8
Debt to equity ratio x 0.0 0.0
Return on assets % 14.1 6.0
Return on equity % 20.1 8.5
Return on capital employed % 29.1 11.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how FOSECO INDIA has performed over the last 5 years, please visit here.

FOSECO INDIA Share Price Performance

Over the last one year, FOSECO INDIA share price has moved up from Rs 1,161.6 to Rs 1,503.8, registering a gain of Rs 342.3 or around 29.5%.

Overall, the S&P BSE SENSEX is up 48.6% over the year.

(To know more, check out historical annual results for FOSECO INDIA and quarterly results for FOSECO INDIA)

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Related Views on News

FOSECO INDIA Announces Quarterly Results (2QFY21); Net Profit Down 50.3% (Quarterly Result Update)

Oct 28, 2020 | Updated on Oct 28, 2020

For the quarter ended September 2020, FOSECO INDIA has posted a net profit of Rs 51 m (down 50.3% YoY). Sales on the other hand came in at Rs 689 m (down 12.4% YoY). Read on for a complete analysis of FOSECO INDIA's quarterly results.

FOSECO INDIA Announces Quarterly Results (4QFY20); Net Profit Down 29.5% (Quarterly Result Update)

May 29, 2020 | Updated on May 29, 2020

For the quarter ended March 2020, FOSECO INDIA has posted a net profit of Rs 61 m (down 29.5% YoY). Sales on the other hand came in at Rs 721 m (down 14.4% YoY). Read on for a complete analysis of FOSECO INDIA's quarterly results.

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