ULTRATECH CEMENT 2022-23 Annual Report Analysis

Mon, 24 Jul

ULTRATECH CEMENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ULTRATECH CEMENT Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.8% in FY23 as against 21.9% in FY22.
• Depreciation charges increased by 6.4% and finance costs decreased by 12.9% YoY, respectively.
• Other income declined by 0.9% YoY.
• Net profit for the year declined by 29.3% YoY.
• Net profit margins during the year declined from 13.6% in FY22 to 8.0% in FY23.

ULTRATECH CEMENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	525,988	632,400	20.2%
Other income	Rs m	5,078	5,031	-0.9%
Total Revenues	Rs m	531,066	637,431	20.0%
Gross profit	Rs m	115,161	106,239	-7.7%
Depreciation	Rs m	27,148	28,880	6.4%
Interest	Rs m	9,447	8,227	-12.9%
Profit before tax	Rs m	83,644	74,163	-11.3%
Tax	Rs m	11,901	23,429	96.9%
Profit after tax	Rs m	71,743	50,734	-29.3%
Gross profit margin	%	21.9	16.8
Effective tax rate	%	14.2	31.6
Net profit margin	%	13.6	8.0

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ULTRATECH CEMENT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 234 billion as compared to Rs 202 billion in FY22, thereby witnessing an increase of 16.3%.
• Long-term debt stood at Rs 54 billion as compared to Rs 53 billion during FY22, a growth of 1.0%.
• Current assets rose 19% and stood at Rs 207 billion, while fixed assets rose 7% and stood at Rs 706 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 914 billion as against Rs 838 billion during FY22, thereby witnessing a growth of 9%.

ULTRATECH CEMENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	503,856	542,444	7.7
Current Liabilities	Rs m	201,552	234,318	16.3
Long-term Debt	Rs m	53,030	53,564	1.0
Total Liabilities	Rs m	838,114	913,804	9.0
Current assets	Rs m	174,799	207,249	18.6
Fixed Assets	Rs m	663,220	706,375	6.5
Total Assets	Rs m	838,114	913,804	9.0

ULTRATECH CEMENT Cash Flow Statement Analysis

• ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY23 stood at Rs 91 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -72 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -16 billion, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -10 billion net cash flows seen during FY22.

ULTRATECH CEMENT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	92,832	90,685	-2.3%
Cash Flow from Investing Activities	Rs m	22,570	-71,871	-
Cash Flow from Financing Activities	Rs m	-124,979	-16,310	-
Net Cash Flow	Rs m	-9,582	2,498	-

Current Valuations for ULTRATECH CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 175.7, an decline from the EPS of Rs 248.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,145.0, stands at 45.4 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 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 23.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,822.1	2,190.6
TTM Earnings per share	Rs	248.5	175.7
Diluted earnings per share	Rs	248.5	175.7
Price to Cash Flow	x	19.3	23.2
TTM P/E ratio	x	26.6	45.4
Price / Book Value ratio	x	4.0	3.4
Market Cap	Rs m	2,005,981	1,847,794
Dividends per share (Unadj.)	Rs	38.0	38.0

Ratio Analysis for ULTRATECH CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.9x during FY22. 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 10.0x during FY23, from 9.9x during FY22. 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 9.4% during FY23, from 14.2% during FY23. 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 13.8% during FY23, from 16.7% during FY22. 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 6.5% during FY23, from 9.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.9	0.9
Debtors’ Days	Days	2	2
Interest coverage	x	9.9	10.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.7	6.5
Return on equity	%	14.2	9.4
Return on capital employed	%	16.7	13.8

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 up from Rs 6,454.5 to Rs 8,145.0, registering a gain of Rs 1,690.5 or around 26.2%.

Overall, the S&P BSE SENSEX is up 20.0% over the year.

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