AMBUJA CEMENT 2018-19 Annual Report Analysis

Tue, 31 Dec

AMBUJA CEMENT has announced its results for the year ended December 2019. Let us have a look at the detailed performance review of the company during FY18-19.

AMBUJA CEMENT Income Statement Analysis

• Operating income during the year rose 4.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.0% in CY19 as against 14.8% in CY18.
• Depreciation charges decreased by 0.1% and finance costs decreased by 0.4% YoY, respectively.
• Other income grew by 56.3% YoY.
• Net profit for the year declined by 6.7% YoY.
• Net profit margins during the year declined from 11.4% in CY18 to 10.2% in CY19.

AMBUJA CEMENT Income Statement 2018-19

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*	% Change
Net Sales	Rs m	260,409	271,036	4.1%
Other income	Rs m	3,714	5,807	56.3%
Total Revenues	Rs m	264,124	276,843	4.8%
Gross profit	Rs m	38,590	45,970	19.1%
Depreciation	Rs m	11,539	11,525	-0.1%
Interest	Rs m	1,705	1,699	-0.4%
Profit before tax	Rs m	29,060	38,553	32.7%
Tax	Rs m	-542	10,922	-2,116.9%
Profit after tax	Rs m	29,602	27,632	-6.7%
Gross profit margin	%	14.8	17.0
Effective tax rate	%	-1.9	28.3
Net profit margin	%	11.4	10.2

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AMBUJA CEMENT Balance Sheet Analysis

• The company's current liabilities during CY19 stood at Rs 91 billion as compared to Rs 84 billion in CY18, thereby witnessing an increase of 8.1%.
• Long-term debt down at Rs 353 million as compared to Rs 397 million during CY18, a fall of 11.1%.
• Current assets rose 15% and stood at Rs 143 billion, while fixed assets rose 4% and stood at Rs 259 billion in CY19.
• Overall, the total assets and liabilities for CY19 stood at Rs 402 billion as against Rs 373 billion during CY18, thereby witnessing a growth of 8%.

AMBUJA CEMENT Balance Sheet as on December 2019

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*	% Change
Networth	Rs m	223,705	240,780	7.6
Current Liabilities	Rs m	83,943	90,703	8.1
Long-term Debt	Rs m	397	353	-11.1
Total Liabilities	Rs m	373,369	401,782	7.6
Current assets	Rs m	124,069	143,190	15.4
Fixed Assets	Rs m	249,300	258,592	3.7
Total Assets	Rs m	373,369	401,782	7.6

AMBUJA CEMENT Cash Flow Statement Analysis

• AMBUJA CEMENT's cash flow from operating activities (CFO) during CY19 stood at Rs 47 billion, an improvement of 178.2% on a YoY basis.
• Cash flow from investing activities (CFI) during CY19 stood at Rs -12 billion, an improvement of 55.7% on a YoY basis.
• Cash flow from financial activities (CFF) during CY19 stood at Rs -6 billion, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during CY19 stood at Rs 29 billion from the Rs 2 billion net cash flows seen during CY18.

AMBUJA CEMENT Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-18	Dec-19
Cash Flow from Operating Activities	Rs m	17,034	47,387	178.2%
Cash Flow from Investing Activities	Rs m	-7,662	-11,929	-
Cash Flow from Financing Activities	Rs m	-7,190	-6,294	-
Net Cash Flow	Rs m	2,196	29,188	1,229.1%

Current Valuations for AMBUJA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.9, an decline from the EPS of Rs 14.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 196.3, stands at 14.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.4 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-18*	12 Dec-19*
Sales per share (Unadj.)	Rs	131.1	136.5
TTM Earnings per share	Rs	14.9	13.9
Diluted earnings per share	Rs	14.9	13.9
Price to Cash Flow	x	10.8	10.9
TTM P/E ratio	x	15.0	14.1
Price / Book Value ratio	x	2.1	1.8
Market Cap	Rs m	465,137	425,077
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for AMBUJA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during CY19, from 1.5x during CY18. 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 23.7x during CY19, from 18.0x during CY18. 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 declined and down at 11.5% during CY19, from 13.2% during CY19. 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 16.7% during CY19, from 13.7% during CY18. 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 declined and down at 7.3% during CY19, from 8.4% during CY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*
Current ratio	x	1.5	1.6
Debtors’ Days	Days	2	1
Interest coverage	x	18.0	23.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.4	7.3
Return on equity	%	13.2	11.5
Return on capital employed	%	13.7	16.7

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 up from Rs 233.3 to Rs 235.1, registering a gain of Rs 1.8 or around 0.8%.

Overall, the S&P BSE SENSEX is up 16.3% 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