X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
AMBUJA CEMENT 2016-17 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

AMBUJA CEMENT 2016-17 Annual Report Analysis
Tue, 18 Dec

AMBUJA CEMENT has announced its results for the year ended December 2017. Let us have a look at the detailed performance review of the company during FY16-17.

AMBUJA CEMENT Income Statement Analysis

  • Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 21.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.3% in CY17 as against 15.8% in CY16.
  • Depreciation charges decreased by 16.5% and finance costs increased by 34.5% YoY, respectively.
  • Other income declined by 31.0% YoY.
  • Net profit for the year grew by 35.6% YoY.
  • Net profit margins during the year grew from 7.0% in CY16 to 8.1% in CY17.

AMBUJA CEMENT Income Statement 2016-17

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Net Sales Rs m 200,938 235,984 17.4%
Other income Rs m 4,679 3,226 -31.0%
Total Revenues Rs m 205,616 239,211 16.3%
Gross profit Rs m 31,812 38,576 21.3%
Depreciation Rs m 14,609 12,195 -16.5%
Interest Rs m 1,530 2,058 34.5%
Profit before tax Rs m 20,351 27,550 35.4%
Tax Rs m 5,738 8,229 43.4%
Profit after tax Rs m 14,341 19,449 35.6%
Gross profit margin % 15.8 16.3
Effective tax rate % 28.2 29.9
Net profit margin % 7.0 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



AMBUJA CEMENT Balance Sheet Analysis

  • The company's current liabilities during CY17 stood at Rs 89 billion as compared to Rs 74 billion in CY16, thereby witnessing an increase of 19.7%.
  • Long-term debt stood at Rs 241 million as compared to Rs 157 million during CY16, a growth of 53.3%.
  • Current assets rose 34% and stood at Rs 111 billion, while fixed assets fell 2% and stood at Rs 216 billion in CY17.
  • Overall, the total assets and liabilities for CY17 stood at Rs 355 billion as against Rs 328 billion during CY16, thereby witnessing a growth of 8%.

AMBUJA CEMENT Balance Sheet as on December 2017

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Networth Rs m 198,209 206,722 4.3
 
Current Liabilities Rs m 74,081 88,677 19.7
Long-term Debt Rs m 157 241 53.3
Total Liabilities Rs m 328,238 355,004 8.2
 
Current assets Rs m 82,882 110,766 33.6
Fixed Assets Rs m 219,854 215,654 -1.9
Total Assets Rs m 328,238 355,004 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



AMBUJA CEMENT Cash Flow Statement Analysis

  • AMBUJA CEMENT's cash flow from operating activities (CFO) during CY17 stood at Rs 34 billion, an improvement of 22.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY17 stood at Rs -8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY17 stood at Rs -10 billion on a YoY basis.
  • Overall, net cash flows for the company during CY17 stood at Rs 17 billion from the Rs -23 billion net cash flows seen during CY16.

AMBUJA CEMENT Cash Flow Statement 2016-17

Particulars No. of months 12 12 % Change
Year Ending Dec-16 Dec-17
Cash Flow from Operating Activities Rs m 28,103 34,339 22.2%
Cash Flow from Investing Activities Rs m -41,649 -7,788 -
Cash Flow from Financing Activities Rs m -9,576 -10,147 -
Net Cash Flow Rs m -23,106 16,635 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for AMBUJA CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an improvement from the EPS of Rs 7.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 218.5, stands at 21.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-16* 12 Dec-17*
Sales per share (Unadj.) Rs 101.2 118.8
TTM Earnings per share Rs 7.2 9.8
Diluted earnings per share Rs 7.2 9.8
Price to Cash Flow x 15.0 13.8
TTM P/E ratio x 21.0 21.0
Price / Book Value ratio x 2.3 2.4
Market Cap Rs m 433,835 433,764
Dividends per share (Unadj.) Rs 2.8 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for AMBUJA CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during CY17, from 1.1x during CY16. 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 14.4x during CY17, from 14.3x during CY16. 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 9.4% during CY17, from 7.2% during CY17. 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 14.4% during CY17, from 10.9% during CY16. 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 6.1% during CY17, from 4.8% during CY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-16* 12 Dec-17*
Current ratio x 1.1 1.2
Debtors’ Days Days 17 14
Interest coverage x 14.3 14.4
Debt to equity ratio x 0.0 0.0
Return on assets % 4.8 6.1
Return on equity % 7.2 9.4
Return on capital employed % 10.9 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how AMBUJA CEMENT has performed over the last 5 years, please visit here.

AMBUJA CEMENT Share Price Performance

Over the last one year, AMBUJA CEMENT share price has moved up from Rs 264.3 to Rs 218.5, registering a loss of Rs 45.9 or around 17.3%.

Overall, the S&P BSE SENSEX is up 7.4% over the year.

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

Equitymaster requests your view! Post a comment on "AMBUJA CEMENT 2016-17 Annual Report Analysis". Click here!

  

Related Views on News

AMBUJA CEMENT 2017-18 Annual Report Analysis (Annual Result Update)

Apr 8, 2019 | Updated on Apr 8, 2019

Here's an analysis of the annual report of AMBUJA CEMENT for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of AMBUJA CEMENT. Also includes updates on the valuation of AMBUJA CEMENT.

AMBUJA CEMENT Announces Quarterly Results (2QFY19); Net Profit Up 11.9% (Quarterly Result Update)

Oct 25, 2018 | Updated on Oct 25, 2018

For the quarter ended September 2018, AMBUJA CEMENT has posted a net profit of Rs 4 bn (up 11.9% YoY). Sales on the other hand came in at Rs 60 bn (up 11.9% YoY). Read on for a complete analysis of AMBUJA CEMENT's quarterly results.

AMBUJA CEMENT Announces Quarterly Results (1QFY19); Net Profit Down 4.3% (Quarterly Result Update)

Jul 27, 2018 | Updated on Jul 27, 2018

For the quarter ended June 2018, AMBUJA CEMENT has posted a net profit of Rs 7 bn (down 4.3% YoY). Sales on the other hand came in at Rs 68 bn (down 5.1% YoY). Read on for a complete analysis of AMBUJA CEMENT's quarterly results.

Ambuja Cement: A Quarter of Double-Digit Volume Growth (Quarterly Results Update - Detailed)

Nov 9, 2017

Double-digit growth in sales and better realisations aid topline growth.

Ambuja Cement: Fall in Other Income Drag Bottomline Lower (Quarterly Results Update - Detailed)

Aug 11, 2017

While topline witnessed growth on the back of higher cement sale volumes, a 50.5% YoY fall in other income weighed on Ambuja's bottomline during the quarter ending June 2017.

More Views on News

Most Popular

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

A Simple 3-Point Investing Manifesto for You the Indian Investor(The 5 Minute Wrapup)

Apr 11, 2019

A must have checklist for every investor in the Indian stock market.

My Master Series on How to Trade Election 2019(Profit Hunter)

Apr 16, 2019

For 30 years he has watched how elections impact the markets, and practiced how to profit from it. Now he is here...telling you everything. Read on...

Election Series: Follow the World's Biggest Traders To See Where the Money Flows(The 5 Minute Wrapup)

Apr 17, 2019

20% of all the traders bring in 80% of the money. Watch these 20% and you get a working idea of which way the wind is blowing.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK AMBUJA CEMENT

  • Track your investment in AMBUJA CEMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

AMBUJA CEMENT - HOLCIM COMPARISON

COMPARE AMBUJA CEMENT WITH

MARKET STATS