ULTRATECH CEMENT 2021-22 Annual Report Analysis

Tue, 26 Jul

ULTRATECH CEMENT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ULTRATECH CEMENT Income Statement Analysis

• Operating income during the year rose 17.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.9% in FY22 as against 25.3% in FY21.
• Depreciation charges increased by 0.5% and finance costs decreased by 36.9% YoY, respectively.
• Other income declined by 32.0% YoY.
• Net profit for the year grew by 34.9% YoY.
• Net profit margins during the year grew from 11.9% in FY21 to 13.6% in FY22.

ULTRATECH CEMENT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	447,258	525,988	17.6%
Other income	Rs m	7,465	5,078	-32.0%
Total Revenues	Rs m	454,723	531,066	16.8%
Gross profit	Rs m	113,072	115,144	1.8%
Depreciation	Rs m	27,002	27,148	0.5%
Interest	Rs m	14,980	9,447	-36.9%
Profit before tax	Rs m	78,555	83,627	6.5%
Tax	Rs m	25,387	11,901	-53.1%
Profit after tax	Rs m	53,168	71,726	34.9%
Gross profit margin	%	25.3	21.9
Effective tax rate	%	32.3	14.2
Net profit margin	%	11.9	13.6

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ULTRATECH CEMENT Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 202 billion as compared to Rs 206 billion in FY21, thereby witnessing an decrease of -2.1%.
• Long-term debt down at Rs 53 billion as compared to Rs 135 billion during FY21, a fall of 60.9%.
• Current assets fell 27% and stood at Rs 175 billion, while fixed assets rose 7% and stood at Rs 663 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 838 billion as against Rs 862 billion during FY21, thereby witnessing a fall of 3%.

ULTRATECH CEMENT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	441,311	503,856	14.2
Current Liabilities	Rs m	205,917	201,552	-2.1
Long-term Debt	Rs m	135,485	53,030	-60.9
Total Liabilities	Rs m	861,764	838,114	-2.7
Current assets	Rs m	240,503	174,895	-27.3
Fixed Assets	Rs m	621,261	663,220	6.8
Total Assets	Rs m	861,764	838,114	-2.7

ULTRATECH CEMENT Cash Flow Statement Analysis

• ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY22 stood at Rs 93 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 23 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -125 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -10 billion from the Rs -7 billion net cash flows seen during FY21.

ULTRATECH CEMENT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	125,004	92,832	-25.7%
Cash Flow from Investing Activities	Rs m	-88,565	22,570	-
Cash Flow from Financing Activities	Rs m	-43,565	-124,979	-
Net Cash Flow	Rs m	-7,122	-9,582	-

Current Valuations for ULTRATECH CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 248.5, an improvement from the EPS of Rs 184.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,335.9, stands at 25.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	1,549.5	1,822.1
TTM Earnings per share	Rs	184.2	248.5
Diluted earnings per share	Rs	184.2	248.5
Price to Cash Flow	x	24.3	20.3
TTM P/E ratio	x	38.5	25.9
Price / Book Value ratio	x	3.3	4.0
Market Cap	Rs m	1,441,557	2,005,981
Dividends per share (Unadj.)	Rs	37.0	38.0

Ratio Analysis for ULTRATECH CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY22, from 1.2x during FY21. 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 9.9x during FY22, from 6.2x during FY21. 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 14.2% during FY22, from 12.0% during FY22. 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 16.7% during FY22, from 16.2% during FY21. 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 9.7% during FY22, from 7.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.2	0.9
Debtors’ Days	Days	2	2
Interest coverage	x	6.2	9.9
Debt to equity ratio	x	0.3	0.1
Return on assets	%	7.9	9.7
Return on equity	%	12.0	14.2
Return on capital employed	%	16.2	16.7

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 7,623.4 to Rs 6,335.9, registering a loss of Rs 1,287.5 or around 16.9%.

Overall, the S&P BSE SENSEX is up 5.0% 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