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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of ULTRATECH CEMENT?

ULTRATECH CEMENT currently trades at Rs 6,591.6 per share. You can check out the latest share price performance of ULTRATECH CEMENT here...

What was the revenue of ULTRATECH CEMENT in FY21? How does it compare to earlier years?

The revenues of ULTRATECH CEMENT stood at Rs 454,896 m in FY21, which was up 5.2% compared to Rs 432,300 m reported in FY20.

ULTRATECH CEMENT's revenue has grown from Rs 227,521 m in FY17 to Rs 454,896 m in FY21.

Over the past 5 years, the revenue of ULTRATECH CEMENT has grown at a CAGR of 18.9%.

What was the net profit of ULTRATECH CEMENT in FY21? How does it compare to earlier years?

The net profit of ULTRATECH CEMENT stood at Rs 54,597 m in FY21, which was down -5.1% compared to Rs 57,521 m reported in FY20.

This compares to a net profit of Rs 23,998 m in FY19 and a net profit of Rs 22,246 m in FY18.

Over the past 5 years, ULTRATECH CEMENT net profit has grown at a CAGR of 19.1%.

What does the cash flow statement of ULTRATECH CEMENT 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 ULTRATECH CEMENT reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 125,030 m as compared to Rs 89,724 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -88,590 m as compared to Rs -41,924 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -43,565 m as compared to Rs -50,759 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations50,05038,87760,13789,724125,030
From Investments-24,80318,61610,589-41,924-88,590
From Financial Activity-25,350-57,351-67,563-50,759-43,565
Net Cashflow-3141843,676-2,954-7,122

What does the Key Ratio analysis of ULTRATECH CEMENT 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 ULTRATECH CEMENT reveals:

  • Operating profit margins witnessed a fall and down at 25.6% in FY21 as against 21.8% in FY20.
  • Net profit margins declined from 13.5% in FY20 to 12.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.3 as compared to 0.4 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)23.619.317.421.825.6
Net Profit Margin (%)12.37.45.813.512.2
Debt to Equity Ratio (x)0.30.60.70.40.3

Read: Latest Annual Report Analysis of ULTRATECH CEMENT

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