ACC LTD 2016-17 Annual Report Analysis

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ACC LTD 2016-17 Annual Report Analysis
Mon, 17 Sep

ACC LTD has announced its results for the year ended December 2017. Let us have a look at the detailed performance review of the company during FY16-17.

ACC LTD Income Statement Analysis

  • Operating income during the year rose 20.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.4% YoY during the fiscal. Operating profit margins witnessed a rise and up at 14.4% in CY17 as against 13.5% in CY16.
  • Depreciation charges and finance costs increased by 5.7% YoY and 25.2% YoY, respectively.
  • Other income grew by 4.9% YoY.
  • Net profit for the year grew by 40.4% YoY.
  • Net profit margins during the year grew from 5.9% in CY16 to 6.9% in CY17.

ACC LTD Income Statement 2016-17

No. of Mths Year Ending12 Dec-16*12 Dec-17*% Change
Net SalesRs m109,897132,85120.9%
Other incomeRs m1,2281,2894.9%
Total RevenuesRs m111,125134,14020.7%
Gross profitRs m14,78519,12429.4%
DepreciationRs m6,0926,4365.7%
InterestRs m78798525.2%
Profit before taxRs m9,13512,99142.2%
TaxRs m2,2693,85669.9%
Profit after taxRs m6,5849,24540.4%
Gross profit margin%13.514.4
Effective tax rate%24.829.7
Net profit margin%5.96.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ACC LTD Balance Sheet Analysis

  • The company's current liabilities during CY17 stood at Rs 48 billion as compared to Rs 40 billion in CY16, thereby witnessing an increase of 20.4%.
  • Current assets rose 38% and stood at Rs 57 billion, while fixed assets fell 4% and stood at Rs 75 billion in CY17.
  • Overall, the total assets and liabilities for CY17 stood at Rs 148 billion as against Rs 134 billion during CY16, thereby witnessing a growth of 11%.

ACC LTD Balance Sheet as on December 2017

No. of Mths Year Ending12 Dec-16*12 Dec-17*% Change
NetworthRs m88,13493,5596.2
 
Current LiabilitiesRs m39,80147,92720.4
Long-term DebtRs m000.0
Total LiabilitiesRs m133,939148,45710.8
 
Current assetsRs m41,04756,54937.8
Fixed AssetsRs m 78,28875,493-3.6
Total AssetsRs m133,939148,45710.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ACC LTD Cash Flow Statement Analysis

  • ACC LTD's cash flow from operating activities (CFO) during CY17 stood at Rs 16 billion, an improvement of 11.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY17 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY17 stood at Rs -4 billion, an improvement of 1% on a YoY basis.
  • Overall, net cash flows for the company during CY17 stood at Rs 8 billion from the Rs 4 billion net cash flows seen during CY16.

ACC LTD Cash Flow Statement 2016-17

ParticularsNo. of months1212% Change
Year EndingDec-16Dec-17
Cash Flow from Operating ActivitiesRs m13,89515,54511.9%
Cash Flow from Investing ActivitiesRs m-5,345-3,796-
Cash Flow from Financing ActivitiesRs m-4,299-4,258-
Net Cash FlowRs m4,2637,50075.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ACC LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.0, an improvement from the EPS of Rs 34.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,586.8, stands at 31.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Dec-16*12 Dec-17*
Sales per share (Unadj.)Rs582.1703.7
TTM Earnings per shareRs34.949.0
Diluted earnings per shareRs35.149.2
Price to Cash Flow x23.819.1
TTM P/E ratiox31.331.2
Price / Book Value ratiox3.13.2
Market CapRs m299,572297,922
Dividends per share (Unadj.)Rs17.026.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ACC LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during CY17, from 1.0x during CY16. 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 deteriorated and stood at 14.2x during CY17, from 12.6x during CY16. 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 9.9% during CY17, from 7.5% during CY17. 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 15.1% during CY17, from 10.9% during CY16. 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 6.9% during CY17, from 5.5% during CY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Dec-16*12 Dec-17*
Current ratiox1.01.2
Debtors’ DaysDays1818
Interest coveragex12.614.2
Debt to equity ratiox0.00.0
Return on assets%5.56.9
Return on equity%7.59.9
Return on capital employed%10.915.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ACC LTD Share Price Performance

Over the last one year, ACC LTD share price has moved up from Rs 1,820.9 to Rs 1,586.8, registering a loss of Rs 234.1 or around 12.9%.

Overall, the S&P BSE SENSEX is up 16.9% over the year.

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

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