Capitaline

Results 27-Jul-23

Analysis

Foseco India

Robust performance

Foseco India standalone net sales increased 21.25% to Rs 120.95 crore in Q2CY23 compared to Q2CY22. Operating profit margin has jumped from 14.48% to 15.09%, leading to 26.39% rise in operating profit to Rs 18.25 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 53.39% to 50.69%. Purchase of finished goods cost rose from 3.07% to 3.36%. Employee cost increased from 10.80% to 12.16%. Other expenses rose from 18.37% to 18.88%.

Other income up 299.29% to Rs 5.63 crore. PBIDT rose 50.66% to Rs 23.88 crore. Provision for interest remained nil.

PBDT rose 50.66% to Rs 23.88 crore. Provision for depreciation rose 25.77% to Rs 2.05 crore.

Profit before EO grew 53.52% to Rs 21.83 crore. The company reported EO income of Rs 11.49 crore compared to nil in the corresponding previous year period. PBT after EO rose 134% to Rs 33.32 crore. On 19th April 2023, the company surrendered the lease-hold land situated at Murdi. Chinchwad, Pune together with the structure standing thereon as is where Is basis as regards the physlcat attributes thereof, to Greaves cotton Limited and terminated the leases against a consideration of Rs. 12 crore plus applicable taxes. The profit on the surrender of the said lease is Rs. 11.485 crore. The same is disclosed under the exceptional 1tem above.

Provision for tax was expense of Rs 5.66 crore, compared to Rs 3.66 crore. Effective tax rate was 16.99% compared to 25.74%. Profit after tax rose 161.93% to Rs 27.66 crore.

Equity capital stood at Rs 6.39 crore as of 30 June 2023 to Rs 6.39 crore as of 30 June 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 74.98% as of 30 June 2023 ,compared to 74.98% as of 30 June 2022 .

For year-to-date (YTD) results analysis

Net sales of Foseco India have increased 16.83% to Rs 231.90 crore. Operating profit margin has declined from 14.97% to 14.55%, leading to 13.56% rise in operating profit to Rs 33.75 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 53.64% to 51.14%. Purchase of finished goods cost rose from 2.98% to 3.59%. Employee cost increased from 10.74% to 12.36%. Other expenses rose from 17.80% to 18.72%.

Other income up 179.84% to Rs 10.83 crore. PBIDT rose 32.72% to Rs 44.58 crore. Provision for interest remained nil. Loan funds remained nil. Inventories rose to Rs 32.59 crore as of 30 June 2023 from Rs 23.27 crore as of 30 June 2022. Sundry debtors were higher at Rs 100.54 crore as of 30 June 2023 compared to Rs 86.84 crore as of 30 June 2022. Cash and bank balance rose to Rs 209.28 crore as of 30 June 2023 from Rs 170.09 crore as of 30 June 2022.

PBDT rose 32.72% to Rs 44.58 crore. Provision for depreciation rose 11.08% to Rs 3.61 crore. Fixed assets increased to Rs 32.56 crore as of 30 June 2023 from Rs 32.54 crore as of 30 June 2022.

Profit before EO grew 35.04% to Rs 40.97 crore. The company reported EO income of Rs 11.49 crore compared to nil in the corresponding previous year period. PBT after EO rose 73% to Rs 52.46 crore.

Provision for tax was expense of Rs 10.56 crore, compared to Rs 7.56 crore. Effective tax rate was 20.13% compared to 24.92%. Profit after tax rose 83.93% to Rs 41.90 crore.

Equity capital stood at Rs 6.39 crore as of 30 June 2023 to Rs 6.39 crore as of 30 June 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 74.98% as of 30 June 2023 ,compared to 74.98% as of 30 June 2022 .

Cash flow from operating activities decreased to Rs 32.38 crore for YTD ended June 2023 from Rs 34.72 crore for YTD ended June 2022. Cash flow used in acquiring fixed assets during the YTD ended June 2023 stood at Rs 3.98 crore, compared to Rs 0.30 crore during the YTD ended June 2022.

Full year results analysis

Net sales (including other operating income) of Foseco India has increased 20.33% to Rs 406.74 crore. Operating profit margin has jumped from 12.90% to 15.43%, leading to 43.96% rise in operating profit to Rs 62.75 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 53.96% to 53.02%. Purchase of finished goods cost rose from 3.08% to 3.34%. Employee cost decreased from 11.33% to 10.88%. Other expenses fell from 18.81% to 17.37%.

Other income was up 33.33% to Rs 7.48 crore. PBIDT rose 42.74% to Rs 70.23 crore. Provision for interest remained nil. Loan funds remained nil. Inventories declined from Rs 22.57 crore as of 31 December 2021 to Rs 20.02 crore as of 31 December 2022. Sundry debtors were higher at Rs 85.14 crore as of 31 December 2022 compared to Rs 74.20 crore as of 31 December 2021. Cash and bank balance rose to Rs 189.22 crore as of 31 December 2022 from Rs 149.81 crore as of 31 December 2021.

PBDT rose 42.74% to Rs 70.23 crore. Provision for depreciation rose 51.36% to Rs 8.9 crore. Fixed assets declined from Rs 35.67 crore as of 31 December 2021 to Rs 31.81 crore as of 31 December 2022.

Profit before tax grew 41.57% to Rs 61.33 crore. Provision for tax was expense of Rs 15.36 crore, compared to Rs 10.65 crore. Effective tax rate was 25.04% compared to 24.58%. Profit after tax rose 40.71% to Rs 45.97 crore.

Promoters’ stake was 74.98% as of 31 December 2022 compared to 74.98% as of 31 December 2021 .

Cash flow from operating activities increased to Rs 58.71 crore for year ended December 2022 from Rs 19.82 crore for year ended December 2021. Cash flow used in acquiring fixed assets during the year ended December 2022 stood at Rs 8.05 crore, compared to Rs 5.47 crore during the year ended December 2021.

The scrip is currently trading at Rs 2915.

Foseco India : Standalone Results
Particulars	2306 (03)	2206 (03)	Var. (%)	2306 (06)	2206 (06)	Var. (%)	2212 (12)	2112 (12)	Var. (%)
Net Sales	120.95	99.75	21	231.9	198.49	17	406.74	338.01	20
OPM (%)	15.1	14.5		14.6	15.0		15.4	12.9
OP	18.25	14.44	26	33.75	29.72	14	62.75	43.59	44
Other Inc.	5.63	1.41	299	10.83	3.87	180	7.48	5.61	33
PBIDT	23.88	15.85	51	44.58	33.59	33	70.23	49.2	43
Interest	0	0		0	0		0	0
PBDT	23.88	15.85	51	44.58	33.59	33	70.23	49.2	43
Depreciation	2.05	1.63	26	3.61	3.25	11	8.9	5.88	51
PBT before EO	21.83	14.22	54	40.97	30.34	35	61.33	43.32	42
EO	11.49	0.00		11.49	0.00		0.00	0.00
PBT after EO	33.32	14.22	134	52.46	30.34	73	61.33	43.32	42
Taxation	5.66	3.66	55	10.56	7.56	40	15.36	10.65	44
PAT	27.66	10.56	162	41.90	22.78	84	45.97	32.67	41
PPA	0	0		0	0		0	0
Net Profit	27.66	10.56	162	41.9	22.78	84	45.97	32.67	41
EPS (Rs)*	#	#		#	#		71.9	51.1
Notes
* EPS is on current equity of Rs 6.39 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

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( Results - Announcements 26-Jul-19 17:42 )

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Foseco India
( Results - Analysis 27-Jul-23 23:49 )

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