AMBUJA CEMENT 2016-17 Annual Report Analysis

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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)

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AMBUJA CEMENT Announces Quarterly Results (2QFY20); Net Profit Up 34.6% (Quarterly Result Update)

Oct 23, 2019 | Updated on Oct 23, 2019

For the quarter ended September 2019, AMBUJA CEMENT has posted a net profit of Rs 5 bn (up 34.6% YoY). Sales on the other hand came in at Rs 61 bn (up 1.0% YoY). Read on for a complete analysis of AMBUJA CEMENT's quarterly results.

AMBUJA CEMENT Announces Quarterly Results (1QFY20); Net Profit Up 20.9% (Quarterly Result Update)

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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.

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