ULTRATECH CEMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

ULTRATECH CEMENT has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ULTRATECH CEMENT Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.6% in FY21 as against 21.8% in FY20.
• Depreciation charges decreased by 0.8% and finance costs decreased by 24.8% YoY, respectively.
• Other income grew by 14.7% YoY.
• Net profit for the year declined by 5.1% YoY.
• Net profit margins during the year declined from 13.5% in FY20 to 12.2% in FY21.

ULTRATECH CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	425,790	447,432	5.1%
Other income	Rs m	6,511	7,465	14.7%
Total Revenues	Rs m	432,300	454,896	5.2%
Gross profit	Rs m	92,838	114,653	23.5%
Depreciation	Rs m	27,227	27,002	-0.8%
Interest	Rs m	19,917	14,980	-24.8%
Profit before tax	Rs m	52,206	80,136	53.5%
Tax	Rs m	-5,315	25,539	-580.5%
Profit after tax	Rs m	57,521	54,597	-5.1%
Gross profit margin	%	21.8	25.6
Effective tax rate	%	-10.2	31.9
Net profit margin	%	13.5	12.2

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ULTRATECH CEMENT Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 206 billion as compared to Rs 166 billion in FY20, thereby witnessing an increase of 24.2%.
• Long-term debt down at Rs 135 billion as compared to Rs 174 billion during FY20, a fall of 22.0%.
• Current assets rose 63% and stood at Rs 241 billion, while fixed assets fell 4% and stood at Rs 621 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 862 billion as against Rs 792 billion during FY20, thereby witnessing a growth of 9%.

ULTRATECH CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	390,079	441,311	13.1
Current Liabilities	Rs m	165,806	205,917	24.2
Long-term Debt	Rs m	173,675	135,485	-22.0
Total Liabilities	Rs m	792,138	861,764	8.8
Current assets	Rs m	147,215	240,503	63.4
Fixed Assets	Rs m	644,924	621,261	-3.7
Total Assets	Rs m	792,138	861,764	8.8

ULTRATECH CEMENT Cash Flow Statement Analysis

• ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 125 billion, an improvement of 39.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -89 billion, an improvement of 111.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -44 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -7 billion from the Rs -3 billion net cash flows seen during FY20.

ULTRATECH CEMENT Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	89,724	125,030	39.3%
Cash Flow from Investing Activities	Rs m	-41,924	-88,590	-
Cash Flow from Financing Activities	Rs m	-50,759	-43,565	-
Net Cash Flow	Rs m	-2,954	-7,122	-

Current Valuations for ULTRATECH CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 189.1, an decline from the EPS of Rs 199.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,737.3, stands at 38.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	1,475.2	1,550.1
TTM Earnings per share	Rs	199.3	189.1
Diluted earnings per share	Rs	199.3	189.1
Price to Cash Flow	x	11.1	17.7
TTM P/E ratio	x	16.4	38.5
Price / Book Value ratio	x	2.9	3.3
Market Cap	Rs m	1,128,106	1,441,557
Dividends per share (Unadj.)	Rs	13.0	37.0

Ratio Analysis for ULTRATECH CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 0.9x during FY20. 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 6.3x during FY21, from 3.6x during FY20. 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 12.4% during FY21, from 14.7% during FY21. 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 16.5% during FY21, from 12.8% during FY20. 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 8.1% during FY21, from 9.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.9	1.2
Debtors’ Days	Days	2	2
Interest coverage	x	3.6	6.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	9.8	8.1
Return on equity	%	14.7	12.4
Return on capital employed	%	12.8	16.5

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 up from Rs 3,254.3 to Rs 6,737.3, registering a gain of Rs 3,483.1 or around 107.0%.

Overall, the S&P BSE SENSEX is up 74.1% 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