ULTRATECH CEMENT 2017-18 Annual Report Analysis

Sat, 31 Mar

ULTRATECH CEMENT has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ULTRATECH CEMENT Income Statement Analysis

• Operating income during the year rose 36.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.3% in FY18 as against 23.6% in FY17.
• Depreciation charges increased by 37.0% and finance costs increased by 93.3% YoY, respectively.
• Other income declined by 9.2% YoY.
• Net profit for the year declined by 18.0% YoY.
• Net profit margins during the year declined from 12.3% in FY17 to 7.4% in FY18.

ULTRATECH CEMENT Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	221,040	300,848	36.1%
Other income	Rs m	6,481	5,886	-9.2%
Total Revenues	Rs m	227,521	306,734	34.8%
Gross profit	Rs m	52,124	57,986	11.2%
Depreciation	Rs m	13,484	18,479	37.0%
Interest	Rs m	6,401	12,376	93.3%
Profit before tax	Rs m	38,720	33,016	-14.7%
Tax	Rs m	11,585	10,770	-7.0%
Profit after tax	Rs m	27,135	22,246	-18.0%
Gross profit margin	%	23.6	19.3
Effective tax rate	%	29.9	32.6
Net profit margin	%	12.3	7.4

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

ULTRATECH CEMENT Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 115 billion as compared to Rs 83 billion in FY17, thereby witnessing an increase of 38.3%.
• Long-term debt stood at Rs 159 billion as compared to Rs 64 billion during FY17, a growth of 149.0%.
• Current assets fell 14% and stood at Rs 115 billion, while fixed assets rose 58% and stood at Rs 457 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 571 billion as against Rs 422 billion during FY17, thereby witnessing a growth of 35%.

ULTRATECH CEMENT Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	243,710	263,639	8.2
Current Liabilities	Rs m	83,286	115,154	38.3
Long-term Debt	Rs m	63,708	158,635	149.0
Total Liabilities	Rs m	422,091	571,411	35.4
Current assets	Rs m	133,257	114,613	-14.0
Fixed Assets	Rs m	288,834	456,798	58.2
Total Assets	Rs m	422,091	571,411	35.4

ULTRATECH CEMENT Cash Flow Statement Analysis

• ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY18 stood at Rs 39 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 19 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -57 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 184 million from the Rs -314 million net cash flows seen during FY17.

ULTRATECH CEMENT Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	50,050	38,877	-22.3%
Cash Flow from Investing Activities	Rs m	-24,803	18,616	-
Cash Flow from Financing Activities	Rs m	-25,350	-57,351	-
Net Cash Flow	Rs m	-314	184	-

Current Valuations for ULTRATECH CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.0, an decline from the EPS of Rs 98.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,947.9, stands at 50.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 28.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	805.2	1,095.5
TTM Earnings per share	Rs	98.8	81.0
Diluted earnings per share	Rs	94.0	77.1
Price to Cash Flow	x	28.4	28.2
TTM P/E ratio	x	42.4	50.5
Price / Book Value ratio	x	4.0	4.4
Market Cap	Rs m	985,483	1,149,026
Dividends per share (Unadj.)	Rs	10.0	10.5

Ratio Analysis for ULTRATECH CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.6x during FY17. 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 3.7x during FY18, from 7.0x during FY17. 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 8.4% during FY18, from 11.1% during FY18. 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 declined and down at 10.7% during FY18, from 14.7% during FY17. 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 6.1% during FY18, from 7.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.6	1.0
Debtors’ Days	Days	3	3
Interest coverage	x	7.0	3.7
Debt to equity ratio	x	0.3	0.6
Return on assets	%	7.9	6.1
Return on equity	%	11.1	8.4
Return on capital employed	%	14.7	10.7

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

ULTRATECH CEMENT Share Price Performance

Over the last one year, ULTRATECH CEMENT share price has moved down from Rs 3,990.0 to Rs 3,947.9, registering a loss of Rs 42.1 or around 1.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of ULTRATECH CEMENT