ACC 2020-21 Annual Report Analysis

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ACC 2020-21 Annual Report Analysis
Fri, 31 Dec

ACC 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.

ACC Income Statement Analysis

  • Operating income during the year rose 17.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 33.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in CY21 as against 15.8% in CY20.
  • Depreciation charges decreased by 6.0% and finance costs decreased by 4.3% YoY, respectively.
  • Other income grew by 11.1% YoY.
  • Net profit for the year grew by 30.3% YoY.
  • Net profit margins during the year grew from 10.3% in CY20 to 11.5% in CY21.

ACC Income Statement 2020-21

No. of Mths Year Ending 12 Dec-20* 12 Dec-21* % Change
Net Sales Rs m 137,860 161,517 17.2%
Other income Rs m 2,178 2,420 11.1%
Total Revenues Rs m 140,037 163,937 17.1%
Gross profit Rs m 21,781 29,080 33.5%
Depreciation Rs m 6,388 6,007 -6.0%
Interest Rs m 571 546 -4.3%
Profit before tax Rs m 16,999 24,947 46.8%
Tax Rs m 2,786 6,433 130.9%
Profit after tax Rs m 14,213 18,515 30.3%
Gross profit margin % 15.8 18.0
Effective tax rate % 16.4 25.8
Net profit margin % 10.3 11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Get Full Details: Richa is Very Bullish on This Smallcap Stock

ACC Balance Sheet Analysis

  • The company's current liabilities during CY21 stood at Rs 60 billion as compared to Rs 48 billion in CY20, thereby witnessing an increase of 25.0%.
  • Current assets rose 23% and stood at Rs 104 billion, while fixed assets rose 9% and stood at Rs 107 billion in CY21.
  • Overall, the total assets and liabilities for CY21 stood at Rs 210 billion as against Rs 182 billion during CY20, thereby witnessing a growth of 16%.

ACC Balance Sheet as on December 2021

No. of Mths Year Ending 12 Dec-20* 12 Dec-21* % Change
Networth Rs m 126,991 143,088 12.7
 
Current Liabilities Rs m 48,043 60,060 25.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 182,002 210,388 15.6
 
Current assets Rs m 84,486 103,694 22.7
Fixed Assets Rs m 97,516 106,695 9.4
Total Assets Rs m 182,002 210,388 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ACC Cash Flow Statement Analysis

  • ACC 's cash flow from operating activities (CFO) during CY21 stood at Rs 28 billion, an improvement of 27.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY21 stood at Rs -10 billion, an improvement of 84.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during CY21 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during CY21 stood at Rs 15 billion from the Rs 14 billion net cash flows seen during CY20.

ACC 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 22,192 28,355 27.8%
Cash Flow from Investing Activities Rs m -5,352 -9,880 -
Cash Flow from Financing Activities Rs m -3,274 -3,305 -
Net Cash Flow Rs m 13,568 15,172 11.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ACC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 98.6, an improvement from the EPS of Rs 75.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,236.8, stands at 24.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.0 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 734.1 860.1
TTM Earnings per share Rs 75.7 98.6
Diluted earnings per share Rs 75.7 98.6
Price to Cash Flow x 17.0 16.0
TTM P/E ratio x 22.5 24.9
Price / Book Value ratio x 2.0 2.7
Market Cap Rs m 251,968 391,752
Dividends per share (Unadj.) Rs 14.0 58.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ACC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during CY21, from 1.8x 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 46.7x during CY21, from 30.8x 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 12.9% during CY21, from 11.2% 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 17.8% during CY21, from 13.8% 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 9.1% during CY21, from 8.1% 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 1.8 1.7
Debtors’ Days Days 1 1
Interest coverage x 30.8 46.7
Debt to equity ratio x 0.0 0.0
Return on assets % 8.1 9.1
Return on equity % 11.2 12.9
Return on capital employed % 13.8 17.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 1,958.2 to Rs 2,236.8, registering a gain of Rs 278.6 or around 14.2%.

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

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

Annual Report FAQs

What is the current share price of ACC ?

ACC currently trades at Rs 2,167.6 per share. You can check out the latest share price performance of ACC here...

What was the revenue of ACC in CY21? How does it compare to earlier years?

The revenues of ACC stood at Rs 163,937 m in CY21, which was up 17.1% compared to Rs 140,037 m reported in CY20.

ACC 's revenue has grown from Rs 125,045 m in CY17 to Rs 163,937 m in CY21.

Over the past 5 years, the revenue of ACC has grown at a CAGR of 7.0%.

What was the net profit of ACC in CY21? How does it compare to earlier years?

The net profit of ACC stood at Rs 18,515 m in CY21, which was up 30.3% compared to Rs 14,213 m reported in CY20.

This compares to a net profit of Rs 13,635 m in CY19 and a net profit of Rs 15,103 m in CY18.

Over the past 5 years, ACC net profit has grown at a CAGR of 19.3%.

What does the cash flow statement of ACC reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ACC reveals:

  • Cash flow from operations increased in CY21 and stood at Rs 28,355 m as compared to Rs 22,192 m in CY20.
  • Cash flow from investments decreased in CY21 and stood at Rs -9,880 m as compared to Rs -5,352 m in CY20.
  • Cash flow from financial activity decreased in CY21 and stood at Rs -3,305 m as compared to Rs -3,274 m in CY20.

Here's the cash flow statement of ACC for the past 5 years.

(Rs m)CY17CY18CY19CY20CY21
From Operations15,54511,17522,54722,19228,355
From Investments-3,796-3,644-3,217-5,352-9,880
From Financial Activity-4,258-3,805-3,742-3,274-3,305
Net Cashflow7,5003,73615,59313,56815,172

What does the Key Ratio analysis of ACC reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ACC reveals:

  • Operating profit margins witnessed a fall and down at 18.0% in CY21 as against 15.8% in CY20.
  • Net profit margins grew from 10.3% in CY20 to 11.5% in CY21.
  • Debt to Equity ratio for CY21 stood at 0.0 as compared to 0.0 in CY20.

Here's the ratio/financial analysis of ACC for the past 5 years.

 CY17CY18CY19CY20CY21
Operating Profit Margin (%)15.413.815.415.818.0
Net Profit Margin (%)7.410.28.710.311.5
Debt to Equity Ratio (x)0.00.00.00.00.0

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