AMBUJA CEMENT 2017-18 Annual Report Analysis

Mon, 31 Dec

AMBUJA CEMENT has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

AMBUJA CEMENT Income Statement Analysis

• Operating income during the year rose 18.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.8% in CY18 as against 17.6% in CY17.
• Depreciation charges decreased by 5.4% and finance costs decreased by 17.1% YoY, respectively.
• Other income grew by 15.1% YoY.
• Net profit for the year grew by 53.2% YoY.
• Net profit margins during the year grew from 8.8% in CY17 to 11.4% in CY18.

AMBUJA CEMENT Income Statement 2017-18

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Net Sales	Rs m	219,248	260,409	18.8%
Other income	Rs m	3,226	3,714	15.1%
Total Revenues	Rs m	222,474	264,124	18.7%
Gross profit	Rs m	38,576	38,590	0.0%
Depreciation	Rs m	12,195	11,539	-5.4%
Interest	Rs m	2,058	1,705	-17.1%
Profit before tax	Rs m	27,550	29,060	5.5%
Tax	Rs m	8,229	-542	-106.6%
Profit after tax	Rs m	19,321	29,602	53.2%
Gross profit margin	%	17.6	14.8
Effective tax rate	%	29.9	-1.9
Net profit margin	%	8.8	11.4

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AMBUJA CEMENT Balance Sheet Analysis

• The company's current liabilities during CY18 down at Rs 84 billion as compared to Rs 89 billion in CY17, thereby witnessing an decrease of -5.4%.
• Long-term debt stood at Rs 397 million as compared to Rs 241 million during CY17, a growth of 64.5%.
• Current assets rose 12% and stood at Rs 124 billion, while fixed assets rose 2% and stood at Rs 249 billion in CY18.
• Overall, the total assets and liabilities for CY18 stood at Rs 373 billion as against Rs 355 billion during CY17, thereby witnessing a growth of 5%.

AMBUJA CEMENT Balance Sheet as on December 2018

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Networth	Rs m	206,722	223,705	8.2
Current Liabilities	Rs m	88,773	83,943	-5.4
Long-term Debt	Rs m	241	397	64.5
Total Liabilities	Rs m	355,092	373,369	5.1
Current assets	Rs m	110,946	124,069	11.8
Fixed Assets	Rs m	244,147	249,300	2.1
Total Assets	Rs m	355,092	373,369	5.1

AMBUJA CEMENT Cash Flow Statement Analysis

• AMBUJA CEMENT's cash flow from operating activities (CFO) during CY18 stood at Rs 17 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY18 stood at Rs -8 billion, an improvement of 0.6% on a YoY basis.
• Cash flow from financial activities (CFF) during CY18 stood at Rs -7 billion, an improvement of 29% on a YoY basis.
• Overall, net cash flows for the company during CY18 stood at Rs 2 billion from the Rs 17 billion net cash flows seen during CY17.

AMBUJA CEMENT Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-17	Dec-18
Cash Flow from Operating Activities	Rs m	34,162	17,034	-50.1%
Cash Flow from Investing Activities	Rs m	-7,620	-7,662	-
Cash Flow from Financing Activities	Rs m	-10,147	-7,190	-
Net Cash Flow	Rs m	16,635	2,196	-86.8%

Current Valuations for AMBUJA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.9, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 224.4, stands at 15.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Sales per share (Unadj.)	Rs	110.4	131.1
TTM Earnings per share	Rs	9.7	14.9
Diluted earnings per share	Rs	9.7	14.9
Price to Cash Flow	x	17.1	11.3
TTM P/E ratio	x	29.4	15.0
Price / Book Value ratio	x	2.4	2.1
Market Cap	Rs m	496,213	465,137
Dividends per share (Unadj.)	Rs	3.6	1.5

Ratio Analysis for AMBUJA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during CY18, from 1.2x during CY17. 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 18.0x during CY18, from 14.4x during CY17. 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 13.2% during CY18, from 9.3% during CY18. 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 13.7% during CY18, from 14.3% during CY17. 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 8.4% during CY18, from 6.0% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Current ratio	x	1.2	1.5
Debtors’ Days	Days	2	2
Interest coverage	x	14.4	18.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	8.4
Return on equity	%	9.3	13.2
Return on capital employed	%	14.3	13.7

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 down from Rs 237.4 to Rs 233.3, registering a loss of Rs 4.1 or around 1.7%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of AMBUJA CEMENT