ULTRATECH CEMENT 2019-20 Annual Report Analysis

Tue, 31 Mar

ULTRATECH CEMENT has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ULTRATECH CEMENT Income Statement Analysis

• Operating income during the year rose 2.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY20 as against 17.4% in FY19.
• Depreciation charges increased by 11.1% and finance costs increased by 12.0% YoY, respectively.
• Other income grew by 40.5% YoY.
• Net profit for the year grew by 139.7% YoY.
• Net profit margins during the year grew from 5.8% in FY19 to 13.5% in FY20.

ULTRATECH CEMENT Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	416,088	425,790	2.3%
Other income	Rs m	4,634	6,511	40.5%
Total Revenues	Rs m	420,723	432,300	2.8%
Gross profit	Rs m	72,331	92,838	28.4%
Depreciation	Rs m	24,507	27,227	11.1%
Interest	Rs m	17,779	19,917	12.0%
Profit before tax	Rs m	34,679	52,206	50.5%
Tax	Rs m	10,681	-5,315	-149.8%
Profit after tax	Rs m	23,998	57,521	139.7%
Gross profit margin	%	17.4	21.8
Effective tax rate	%	30.8	-10.2
Net profit margin	%	5.8	13.5

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ULTRATECH CEMENT Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 166 billion as compared to Rs 155 billion in FY19, thereby witnessing an increase of 6.7%.
• Long-term debt down at Rs 174 billion as compared to Rs 207 billion during FY19, a fall of 15.9%.
• Current assets rose 14% and stood at Rs 147 billion, while fixed assets rose 1% and stood at Rs 645 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 792 billion as against Rs 765 billion during FY19, thereby witnessing a growth of 4%.

ULTRATECH CEMENT Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	283,393	390,079	37.6
Current Liabilities	Rs m	155,333	165,806	6.7
Long-term Debt	Rs m	206,504	173,675	-15.9
Total Liabilities	Rs m	765,254	792,138	3.5
Current assets	Rs m	129,542	147,215	13.6
Fixed Assets	Rs m	635,711	644,924	1.4
Total Assets	Rs m	765,254	792,138	3.5

ULTRATECH CEMENT Cash Flow Statement Analysis

• ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY20 stood at Rs 90 billion, an improvement of 49.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -42 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -51 billion, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -3 billion from the Rs 4 billion net cash flows seen during FY19.

ULTRATECH CEMENT Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	60,137	89,724	49.2%
Cash Flow from Investing Activities	Rs m	10,589	-41,924	-
Cash Flow from Financing Activities	Rs m	-67,563	-50,759	-
Net Cash Flow	Rs m	3,676	-2,954	-

Current Valuations for ULTRATECH CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 199.3, an improvement from the EPS of Rs 87.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,254.3, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	1,515.0	1,475.2
TTM Earnings per share	Rs	87.4	199.3
Diluted earnings per share	Rs	83.1	199.3
Price to Cash Flow	x	23.8	13.3
TTM P/E ratio	x	47.9	16.4
Price / Book Value ratio	x	3.8	2.9
Market Cap	Rs m	1,064,749	1,128,106
Dividends per share (Unadj.)	Rs	11.5	13.0

Ratio Analysis for ULTRATECH CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY20, from 0.8x during FY19. 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 3.6x during FY20, from 3.0x during FY19. 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 14.7% during FY20, from 8.5% during FY20. 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 12.8% during FY20, from 10.7% during FY19. 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 9.8% during FY20, from 5.5% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	0.8	0.9
Debtors’ Days	Days	2	2
Interest coverage	x	3.0	3.6
Debt to equity ratio	x	0.7	0.4
Return on assets	%	5.5	9.8
Return on equity	%	8.5	14.7
Return on capital employed	%	10.7	12.8

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 3,999.1 to Rs 3,254.3, registering a loss of Rs 744.8 or around 18.6%.

Overall, the S&P BSE SENSEX is down 24.2% 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