FOSECO INDIA 2020-21 Annual Report Analysis

Fri, 31 Dec

FOSECO INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

FOSECO INDIA Income Statement Analysis

• Operating income during the year rose 34.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 113.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in CY21 as against 8.2% in CY20.
• Depreciation charges decreased by 0.5% and finance costs increased by 25.4% YoY, respectively.
• Other income declined by 15.3% YoY.
• Net profit for the year grew by 111.6% YoY.
• Net profit margins during the year grew from 6.1% in CY20 to 9.7% in CY21.

FOSECO INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	2,512	3,380	34.6%
Other income	Rs m	66	56	-15.3%
Total Revenues	Rs m	2,578	3,436	33.3%
Gross profit	Rs m	205	438	113.3%
Depreciation	Rs m	59	59	-0.5%
Interest	Rs m	2	2	25.4%
Profit before tax	Rs m	211	433	105.4%
Tax	Rs m	57	107	88.5%
Profit after tax	Rs m	154	327	111.6%
Gross profit margin	%	8.2	13.0
Effective tax rate	%	26.8	24.6
Net profit margin	%	6.1	9.7

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FOSECO INDIA Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 852 million as compared to Rs 799 million in CY20, thereby witnessing an increase of 6.7%.
• Current assets rose 16% and stood at Rs 3 billion, while fixed assets fell 10% and stood at Rs 375 million in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 3 billion as against Rs 3 billion during CY20, thereby witnessing a growth of 12%.

FOSECO INDIA Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	1,824	2,082	14.2
Current Liabilities	Rs m	799	852	6.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,605	2,919	12.1
Current assets	Rs m	2,189	2,543	16.2
Fixed Assets	Rs m	416	375	-9.8
Total Assets	Rs m	2,605	2,919	12.1

FOSECO INDIA Cash Flow Statement Analysis

• FOSECO INDIA's cash flow from operating activities (CFO) during CY21 stood at Rs 197 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -64 million on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs 129 million from the Rs 252 million net cash flows seen during CY20.

FOSECO INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	303	197	-34.8%
Cash Flow from Investing Activities	Rs m	-19	-5	-
Cash Flow from Financing Activities	Rs m	-32	-64	-
Net Cash Flow	Rs m	252	129	-48.9%

Current Valuations for FOSECO INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.1, an improvement from the EPS of Rs 24.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,629.7, stands at 29.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 24.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	393.0	529.0
TTM Earnings per share	Rs	24.2	51.1
Diluted earnings per share	Rs	24.2	51.2
Price to Cash Flow	x	23.6	24.2
TTM P/E ratio	x	27.8	29.2
Price / Book Value ratio	x	4.4	4.5
Market Cap	Rs m	7,951	9,314
Dividends per share (Unadj.)	Rs	15.0	25.0

Ratio Analysis for FOSECO INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during CY21, from 2.7x during CY20. 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 205.4x during CY21, from 125.8x during CY20. 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 improved and stood at 15.7% during CY21, from 8.5% during CY21. 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 improved and stood at 20.9% during CY21, from 11.7% during CY20. 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 improved and stood at 11.3% during CY21, from 6.0% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	2.7	3.0
Debtors’ Days	Days	943	801
Interest coverage	x	125.8	205.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	11.3
Return on equity	%	8.5	15.7
Return on capital employed	%	11.7	20.9

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 1,404.3 to Rs 1,629.7, registering a gain of Rs 225.4 or around 16.1%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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

Read: Latest Annual Report Analysis of FOSECO INDIA