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AMBUJA CEMENT 2017-18 Annual Report Analysis

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AMBUJA CEMENT 2017-18 Annual Report Analysis
Mon, 8 Apr

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 10.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.4% in CY18 as against 16.3% 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 52.8% YoY.
  • Net profit margins during the year grew from 8.1% in CY17 to 11.3% in CY18.

AMBUJA CEMENT Income Statement 2017-18

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Net Sales Rs m 236,087 260,409 10.3%
Other income Rs m 3,226 3,714 15.1%
Total Revenues Rs m 239,313 264,124 10.4%
Gross profit Rs m 38,576 40,108 4.0%
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 30,578 11.0%
Tax Rs m 8,229 -542 -106.6%
Profit after tax Rs m 19,449 29,727 52.8%
Gross profit margin % 16.3 15.4
Effective tax rate % 29.9 -1.8
Net profit margin % 8.1 11.3
* 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 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 1% and stood at Rs 218 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 355,129 373,407 5.1
 
Current assets Rs m 110,946 124,215 12.0
Fixed Assets Rs m 215,654 217,736 1.0
Total Assets Rs m 355,129 373,407 5.1
* 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 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 27% 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 17,266 -49.5%
Cash Flow from Investing Activities Rs m -7,620 -7,662 -
Cash Flow from Financing Activities Rs m -10,147 -7,422 -
Net Cash Flow Rs m 16,635 2,196 -86.8%
* 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 15.0, an improvement from the EPS of Rs 9.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 226.8, stands at 15.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.9 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 118.9 131.1
TTM Earnings per share Rs 9.8 15.0
Diluted earnings per share Rs 9.8 15.0
Price to Cash Flow x 14.3 10.9
TTM P/E ratio x 15.2 15.2
Price / Book Value ratio x 2.4 2.1
Market Cap Rs m 450,246 450,245
Dividends per share (Unadj.) Rs 3.6 1.5
* 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 1.5x 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 18.9x 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 13.3% during CY18, from 9.4% 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 13.8% during CY18, from 14.4% 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 6.1% 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 14 18
Interest coverage x 14.4 18.9
Debt to equity ratio x 0.0 0.0
Return on assets % 6.1 8.4
Return on equity % 9.4 13.3
Return on capital employed % 14.4 13.8
* 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 239.0 to Rs 226.8, registering a loss of Rs 12.2 or around 5.1%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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

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