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DECCAN CEMENTS 2021-22 Annual Report Analysis
Wed, 24 Aug

DECCAN CEMENTS 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.

DECCAN CEMENTS Income Statement Analysis

  • Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.0% in FY22 as against 23.2% in FY21.
  • Depreciation charges increased by 11.8% and finance costs increased by 37.1% YoY, respectively.
  • Other income grew by 5.7% YoY.
  • Net profit for the year declined by 23.9% YoY.
  • Net profit margins during the year declined from 15.2% in FY21 to 11.1% in FY22.

DECCAN CEMENTS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 7,580 7,918 4.5%
Other income Rs m 101 107 5.7%
Total Revenues Rs m 7,681 8,025 4.5%
Gross profit Rs m 1,760 1,429 -18.8%
Depreciation Rs m 232 259 11.8%
Interest Rs m 76 104 37.1%
Profit before tax Rs m 1,554 1,173 -24.5%
Tax Rs m 402 297 -26.2%
Profit after tax Rs m 1,151 876 -23.9%
Gross profit margin % 23.2 18.0
Effective tax rate % 25.9 25.3
Net profit margin % 15.2 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

DECCAN CEMENTS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 25.0%.
  • Long-term debt down at Rs 462 million as compared to Rs 518 million during FY21, a fall of 10.7%.
  • Current assets rose 12% and stood at Rs 4 billion, while fixed assets rose 16% and stood at Rs 6 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 14%.

DECCAN CEMENTS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 5,650 6,456 14.3
 
Current Liabilities Rs m 1,885 2,356 25.0
Long-term Debt Rs m 518 462 -10.7
Total Liabilities Rs m 8,615 9,850 14.3
 
Current assets Rs m 3,775 4,234 12.1
Fixed Assets Rs m 4,840 5,616 16.0
Total Assets Rs m 8,615 9,850 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DECCAN CEMENTS Cash Flow Statement Analysis

  • DECCAN CEMENTS's cash flow from operating activities (CFO) during FY22 stood at Rs 793 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -867 million, an improvement of 91.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 453 million, an improvement of 626% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 379 million from the Rs 1 billion net cash flows seen during FY21.

DECCAN CEMENTS 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 1,968 793 -59.7%
Cash Flow from Investing Activities Rs m -453 -867 -
Cash Flow from Financing Activities Rs m -86 453 -
Net Cash Flow Rs m 1,429 379 -73.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DECCAN CEMENTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.5, an decline from the EPS of Rs 82.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 515.9, stands at 10.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.6 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 541.0 565.2
TTM Earnings per share Rs 82.2 62.5
Diluted earnings per share Rs 82.2 62.5
Price to Cash Flow x 4.2 7.6
TTM P/E ratio x 5.0 10.1
Price / Book Value ratio x 0.8 1.3
Market Cap Rs m 4,554 8,674
Dividends per share (Unadj.) Rs 5.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DECCAN CEMENTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY22, from 2.0x 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 deteriorated and stood at 12.3x during FY22, from 21.5x 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 declined and down at 13.6% during FY22, from 20.4% 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 declined and down at 18.5% during FY22, from 26.4% 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 declined and down at 9.9% during FY22, from 14.2% 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 2.0 1.8
Debtors’ Days Days 121 109
Interest coverage x 21.5 12.3
Debt to equity ratio x 0.1 0.1
Return on assets % 14.2 9.9
Return on equity % 20.4 13.6
Return on capital employed % 26.4 18.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DECCAN CEMENTS has performed over the last 5 years, please visit here.

DECCAN CEMENTS Share Price Performance

Over the last one year, DECCAN CEMENTS share price has moved down from Rs 706.6 to Rs 515.9, registering a loss of Rs 190.8 or around 27.0%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

(To know more, check out historical annual results for DECCAN CEMENTS and quarterly results for DECCAN CEMENTS)

Annual Report FAQs

What is the current share price of DECCAN CEMENTS?

DECCAN CEMENTS currently trades at Rs 590.5 per share. You can check out the latest share price performance of DECCAN CEMENTS here...

What was the revenue of DECCAN CEMENTS in FY22? How does it compare to earlier years?

The revenues of DECCAN CEMENTS stood at Rs 8,025 m in FY22, which was up 4.5% compared to Rs 7,681 m reported in FY21.

DECCAN CEMENTS' revenue has grown from Rs 5,500 m in FY18 to Rs 8,025 m in FY22.

Over the past 5 years, the revenue of DECCAN CEMENTS has grown at a CAGR of 9.9%.

What was the net profit of DECCAN CEMENTS in FY22? How does it compare to earlier years?

The net profit of DECCAN CEMENTS stood at Rs 876 m in FY22, which was down -23.9% compared to Rs 1,151 m reported in FY21.

This compares to a net profit of Rs 566 m in FY20 and a net profit of Rs 461 m in FY19.

Over the past 5 years, DECCAN CEMENTS net profit has grown at a CAGR of 22.8%.

What does the cash flow statement of DECCAN CEMENTS 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 DECCAN CEMENTS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 793 m as compared to Rs 1,968 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -867 m as compared to Rs -453 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 453 m as compared to Rs -86 m in FY21.

Here's the cash flow statement of DECCAN CEMENTS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations7055834311,968793
From Investments-116-136-898-453-867
From Financial Activity-360104322-86453
Net Cashflow230550-1461,429379

What does the Key Ratio analysis of DECCAN CEMENTS 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 DECCAN CEMENTS reveals:

  • Operating profit margins witnessed a fall and stood at 18.0% in FY22 as against 23.2% in FY21.
  • Net profit margins declined from 15.2% in FY21 to 11.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.1 in FY21.

Here's the ratio/financial analysis of DECCAN CEMENTS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)15.614.612.423.218.0
Net Profit Margin (%)7.17.110.215.211.1
Debt to Equity Ratio (x)0.10.10.10.10.1

 

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