ACC 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on 30th November, 2020 on account of Guru Nanak Jayanti.

ACC 2018-19 Annual Report Analysis
Tue, 20 Oct

ACC has announced its results for the year ended December 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ACC Income Statement Analysis

  • Operating income during the year rose 5.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.4% in CY19 as against 13.8% in CY18.
  • Depreciation charges increased by 0.5% and finance costs decreased by 1.7% YoY, respectively.
  • Other income grew by 123.2% YoY.
  • Net profit for the year declined by 9.4% YoY.
  • Net profit margins during the year declined from 10.2% in CY18 to 8.6% in CY19.

ACC Income Statement 2018-19

No. of Mths Year Ending 12 Dec-18* 12 Dec-19* % Change
Net Sales Rs m 148,016 156,576 5.8%
Other income Rs m 1,427 3,184 123.2%
Total Revenues Rs m 149,443 159,760 6.9%
Gross profit Rs m 20,481 24,128 17.8%
Depreciation Rs m 6,032 6,064 0.5%
Interest Rs m 878 863 -1.7%
Profit before tax Rs m 14,998 20,385 35.9%
Tax Rs m -105 6,750 -6,522.3%
Profit after tax Rs m 15,206 13,775 -9.4%
Gross profit margin % 13.8 15.4
Effective tax rate % -0.7 33.1
Net profit margin % 10.2 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Tomorrow at 5pm: Get the details of India's #1 defence stock

ACC Balance Sheet Analysis

  • The company's current liabilities during CY19 down at Rs 47 billion as compared to Rs 47 billion in CY18, thereby witnessing an decrease of -0.2%.
  • Current assets rose 13% and stood at Rs 75 billion, while fixed assets fell 0% and stood at Rs 75 billion in CY19.
  • Overall, the total assets and liabilities for CY19 stood at Rs 171 billion as against Rs 161 billion during CY18, thereby witnessing a growth of 7%.

ACC Balance Sheet as on December 2019

No. of Mths Year Ending 12 Dec-18* 12 Dec-19* % Change
Networth Rs m 105,319 115,438 9.6
 
Current Liabilities Rs m 47,062 46,982 -0.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 160,560 171,360 6.7
 
Current assets Rs m 66,844 75,346 12.7
Fixed Assets Rs m 74,860 74,724 -0.2
Total Assets Rs m 160,560 171,360 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ACC Cash Flow Statement Analysis

  • ACC 's cash flow from operating activities (CFO) during CY19 stood at Rs 23 billion, an improvement of 101.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY19 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY19 stood at Rs -4 billion, an improvement of 2% on a YoY basis.
  • Overall, net cash flows for the company during CY19 stood at Rs 16 billion from the Rs 4 billion net cash flows seen during CY18.

ACC Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Dec-18 Dec-19
Cash Flow from Operating Activities Rs m 11,175 22,547 101.8%
Cash Flow from Investing Activities Rs m -3,644 -3,217 -
Cash Flow from Financing Activities Rs m -3,805 -3,742 -
Net Cash Flow Rs m 3,736 15,593 317.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ACC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 73.0, an decline from the EPS of Rs 80.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,578.2, stands at 25.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-18* 12 Dec-19*
Sales per share (Unadj.) Rs 784.0 829.4
TTM Earnings per share Rs 80.5 73.0
Diluted earnings per share Rs 81.0 73.4
Price to Cash Flow x 14.1 15.0
TTM P/E ratio x 25.7 25.6
Price / Book Value ratio x 2.8 2.5
Market Cap Rs m 297,939 296,298
Dividends per share (Unadj.) Rs 14.0 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ACC

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during CY19, from 1.4x during CY18. 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 24.6x during CY19, from 18.1x during CY18. 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 11.9% during CY19, from 14.4% during CY19. 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 18.5% during CY19, from 15.2% during CY18. 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 8.5% during CY19, from 10.0% during CY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-18* 12 Dec-19*
Current ratio x 1.4 1.6
Debtors’ Days Days 21 15
Interest coverage x 18.1 24.6
Debt to equity ratio x 0.0 0.0
Return on assets % 10.0 8.5
Return on equity % 14.4 11.9
Return on capital employed % 15.2 18.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ACC Share Price Performance

Over the last one year, ACC share price has moved up from Rs 1,553.1 to Rs 1,578.2, registering a gain of Rs 25.1 or around 1.6%.

Overall, the S&P BSE SENSEX is up 5.4% over the year.

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

Equitymaster requests your view! Post a comment on "ACC 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

ACC Announces Quarterly Results (2QFY21); Net Profit Up 21.3% (Quarterly Result Update)

Oct 22, 2020 | Updated on Oct 22, 2020

For the quarter ended September 2020, ACC has posted a net profit of Rs 4 bn (up 21.3% YoY). Sales on the other hand came in at Rs 35 bn (up 0.3% YoY). Read on for a complete analysis of ACC 's quarterly results.

ACC Announces Quarterly Results (4QFY20); Net Profit Down 6.4% (Quarterly Result Update)

Apr 24, 2020 | Updated on Apr 24, 2020

For the quarter ended March 2020, ACC has posted a net profit of Rs 3 bn (down 6.4% YoY). Sales on the other hand came in at Rs 35 bn (down 10.7% YoY). Read on for a complete analysis of ACC 's quarterly results.

ACC LTD 2017-18 Annual Report Analysis (Annual Result Update)

Mar 5, 2019 | Updated on Mar 5, 2019

Here's an analysis of the annual report of ACC LTD for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of ACC LTD. Also includes updates on the valuation of ACC LTD.

More Views on News

Most Popular

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

Stocks that Could Shine More than Gold After Diwali(Profit Hunter)

Nov 17, 2020

If the markets become volatile over the next few months, do this.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

How to Build the Best Trading System(Fast Profits Daily)

Nov 20, 2020

In this video, I'll show you how to make the best trading system.

An Eraser and Some Pencils(The Honest Truth)

Nov 17, 2020

Ajit Dayal on the road ahead for the world after covid.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK ACC

COMPARE ACC WITH

MARKET STATS