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AMBUJA CEMENT 2016-17 Annual Report Analysis
Sun, 31 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 26.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 22.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in CY17 as against 18.1% in CY16.
  • Depreciation charges decreased by 16.5% and finance costs increased by 0.5% YoY, respectively.
  • Other income declined by 37.9% YoY.
  • Net profit for the year grew by 35.8% YoY.
  • Net profit margins during the year grew from 8.2% in CY16 to 8.8% in CY17.

AMBUJA CEMENT Income Statement 2016-17

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Net Sales Rs m 173,316 219,248 26.5%
Other income Rs m 5,197 3,226 -37.9%
Total Revenues Rs m 178,513 222,474 24.6%
Gross profit Rs m 31,426 38,576 22.8%
Depreciation Rs m 14,609 12,195 -16.5%
Interest Rs m 2,048 2,058 0.5%
Profit before tax Rs m 19,965 27,550 38.0%
Tax Rs m 5,738 8,229 43.4%
Profit after tax Rs m 14,228 19,321 35.8%
Gross profit margin % 18.1 17.6
Effective tax rate % 28.7 29.9
Net profit margin % 8.2 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

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 19.8%.
  • 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 0% and stood at Rs 244 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 88,773 19.8
Long-term Debt Rs m 157 241 53.3
Total Liabilities Rs m 328,238 355,092 8.2
 
Current assets Rs m 82,882 110,946 33.9
Fixed Assets Rs m 245,357 244,147 -0.5
Total Assets Rs m 328,238 355,092 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 21.6% 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 34,162 21.6%
Cash Flow from Investing Activities Rs m -41,649 -7,620 -
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: Accord Fintech, Equitymaster



Current Valuations for AMBUJA CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, 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 271.2, stands at 29.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.7 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 87.3 110.4
TTM Earnings per share Rs 7.2 9.7
Diluted earnings per share Rs 7.2 9.7
Price to Cash Flow x 14.2 15.7
TTM P/E ratio x 36.4 29.4
Price / Book Value ratio x 2.3 2.4
Market Cap Rs m 463,648 496,213
Dividends per share (Unadj.) Rs 2.8 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 improved and stood at 14.4x during CY17, from 10.7x 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 9.3% 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 14.3% during CY17, from 11.1% 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 6.0% during CY17, from 5.0% 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 2 2
Interest coverage x 10.7 14.4
Debt to equity ratio x 0.0 0.0
Return on assets % 5.0 6.0
Return on equity % 7.2 9.3
Return on capital employed % 11.1 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 232.2 to Rs 237.4, registering a gain of Rs 5.3 or around 2.3%.

Overall, the S&P BSE SENSEX is up 16.9% over the year.

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

Annual Report FAQs

What is the current share price of AMBUJA CEMENT?

AMBUJA CEMENT currently trades at Rs 612.3 per share. You can check out the latest share price performance of AMBUJA CEMENT here...

What was the revenue of AMBUJA CEMENT in CY17? How does it compare to earlier years?

The revenues of AMBUJA CEMENT stood at Rs 222,474 m in CY17, which was up 24.6% compared to Rs 178,513 m reported in CY16.

AMBUJA CEMENT's revenue has grown from Rs 83,140 m in CY13 to Rs 222,474 m in CY17.

Over the past 5 years, the revenue of AMBUJA CEMENT has grown at a CAGR of 27.9%.

What was the net profit of AMBUJA CEMENT in CY17? How does it compare to earlier years?

The net profit of AMBUJA CEMENT stood at Rs 19,321 m in CY17, which was up 35.8% compared to Rs 14,228 m reported in CY16.

This compares to a net profit of Rs 8,079 m in CY15 and a net profit of Rs 14,865 m in CY14.

Over the past 5 years, AMBUJA CEMENT net profit has grown at a CAGR of 10.9%.

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

  • Cash flow from operations increased in CY17 and stood at Rs 34,162 m as compared to Rs 28,103 m in CY16.
  • Cash flow from investments increased in CY17 and stood at Rs -7,620 m as compared to Rs -41,649 m in CY16.
  • Cash flow from financial activity decreased in CY17 and stood at Rs -10,147 m as compared to Rs -9,576 m in CY16.

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

(Rs m)CY13CY14CY15CY16CY17
From Operations12,67516,75515,56628,10334,162
From Investments-4,962-4,560-826-41,649-7,620
From Financial Activity-6,724-7,212-9,002-9,576-10,147
Net Cashflow9894,9835,738-23,10616,635

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

  • Operating profit margins witnessed a fall and stood at 17.6% in CY17 as against 18.1% in CY16.
  • Net profit margins grew from 8.2% in CY16 to 8.8% in CY17.
  • Debt to Equity ratio for CY17 stood at 0.0 as compared to 0.0 in CY16.

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

 CY13CY14CY15CY16CY17
Operating Profit Margin (%)21.222.219.018.117.6
Net Profit Margin (%)16.117.110.08.28.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of AMBUJA CEMENT

 

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