FOSECO INDIA 2021-22 Annual Report Analysis

Sat, 31 Dec

FOSECO INDIA has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

FOSECO INDIA Income Statement Analysis

• Operating income during the year rose 20.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in CY22 as against 13.0% in CY21.
• Depreciation charges increased by 51.3% and finance costs decreased by 20.3% YoY, respectively.
• Other income grew by 43.4% YoY.
• Net profit for the year grew by 40.7% YoY.
• Net profit margins during the year grew from 9.7% in CY21 to 11.3% in CY22.

FOSECO INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	3,380	4,067	20.3%
Other income	Rs m	56	81	43.4%
Total Revenues	Rs m	3,436	4,148	20.7%
Gross profit	Rs m	438	623	42.3%
Depreciation	Rs m	59	89	51.3%
Interest	Rs m	2	2	-20.3%
Profit before tax	Rs m	433	613	41.6%
Tax	Rs m	107	154	44.2%
Profit after tax	Rs m	327	460	40.7%
Gross profit margin	%	13.0	15.3
Effective tax rate	%	24.6	25.0
Net profit margin	%	9.7	11.3

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FOSECO INDIA Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 1 billion as compared to Rs 852 million in CY21, thereby witnessing an increase of 23.4%.
• Current assets rose 20% and stood at Rs 3 billion, while fixed assets fell 6% and stood at Rs 353 million in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 3 billion as against Rs 3 billion during CY21, thereby witnessing a growth of 17%.

FOSECO INDIA Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	2,082	2,381	14.4
Current Liabilities	Rs m	852	1,051	23.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,919	3,418	17.1
Current assets	Rs m	2,543	3,065	20.5
Fixed Assets	Rs m	375	353	-5.9
Total Assets	Rs m	2,919	3,418	17.1

FOSECO INDIA Cash Flow Statement Analysis

• FOSECO INDIA's cash flow from operating activities (CFO) during CY22 stood at Rs 587 million, an improvement of 196.3% on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs -31 million, an improvement of 553.2% on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -161 million on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs 395 million from the Rs 129 million net cash flows seen during CY21.

FOSECO INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	198	587	196.3%
Cash Flow from Investing Activities	Rs m	-5	-31	-
Cash Flow from Financing Activities	Rs m	-65	-161	-
Net Cash Flow	Rs m	129	395	207.0%

Current Valuations for FOSECO INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 71.9, an improvement from the EPS of Rs 51.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,924.2, stands at 26.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	529.0	636.5
TTM Earnings per share	Rs	51.1	71.9
Diluted earnings per share	Rs	51.2	72.0
Price to Cash Flow	x	23.6	19.6
TTM P/E ratio	x	27.8	26.7
Price / Book Value ratio	x	4.5	4.5
Market Cap	Rs m	9,314	10,763
Dividends per share (Unadj.)	Rs	25.0	40.0

Ratio Analysis for FOSECO INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during CY22, from 3.0x during CY21. 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 363.9x during CY22, from 205.4x during CY21. 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 19.3% during CY22, from 15.7% during CY22. 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 25.8% during CY22, from 20.9% during CY21. 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 13.5% during CY22, from 11.3% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	3.0	2.9
Debtors’ Days	Days	801	764
Interest coverage	x	205.4	363.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.3	13.5
Return on equity	%	15.7	19.3
Return on capital employed	%	20.9	25.8

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 1,143.1 to Rs 1,380.4, registering a gain of Rs 237.3 or around 20.8%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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