AMBUJA CEMENT 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

AMBUJA CEMENT 2018-19 Annual Report Analysis
Tue, 20 Oct

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 14.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.0% in CY19 as against 15.4% 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 6.4% YoY.
  • Net profit margins during the year declined from 11.3% in CY18 to 10.1% 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 40,108 45,970 14.6%
Depreciation Rs m 11,539 11,525 -0.1%
Interest Rs m 1,705 1,699 -0.4%
Profit before tax Rs m 30,578 38,553 26.1%
Tax Rs m -542 10,922 -2,116.9%
Profit after tax Rs m 29,727 27,832 -6.4%
Gross profit margin % 15.4 17.0
Effective tax rate % -1.8 28.3
Net profit margin % 11.3 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Watch Now: Replay of Our Explosive Profits Summit

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 3% and stood at Rs 224 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 373,407 401,823 7.6
 
Current assets Rs m 124,069 143,190 15.4
Fixed Assets Rs m 217,736 224,016 2.9
Total Assets Rs m 373,407 401,823 7.6
* 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 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%
* 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 14.0, an decline from the EPS of Rs 15.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 250.9, stands at 17.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.7 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 15.0 14.0
Diluted earnings per share Rs 15.0 14.0
Price to Cash Flow x 12.1 12.7
TTM P/E ratio x 17.7 17.7
Price / Book Value ratio x 2.1 1.8
Market Cap Rs m 498,200 498,198
Dividends per share (Unadj.) Rs 1.5 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 1.6x 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 18.9x 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 11.6% during CY19, from 13.3% 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 16.8% during CY19, from 13.8% 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 18 14
Interest coverage x 18.9 23.7
Debt to equity ratio x 0.0 0.0
Return on assets % 8.4 7.3
Return on equity % 13.3 11.6
Return on capital employed % 13.8 16.8
* 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 207.7 to Rs 250.9, registering a gain of Rs 43.3 or around 20.8%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

Equitymaster requests your view! Post a comment on "AMBUJA CEMENT 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

AMBUJA CEMENT Announces Quarterly Results (2QFY21); Net Profit Up 51.4% (Quarterly Result Update)

Oct 26, 2020 | Updated on Oct 26, 2020

For the quarter ended September 2020, AMBUJA CEMENT has posted a net profit of Rs 8 bn (up 51.4% YoY). Sales on the other hand came in at Rs 62 bn (up 1.5% YoY). Read on for a complete analysis of AMBUJA CEMENT's quarterly results.

AMBUJA CEMENT Announces Quarterly Results (4QFY20); Net Profit Up 7.0% (Quarterly Result Update)

Apr 29, 2020 | Updated on Apr 29, 2020

For the quarter ended March 2020, AMBUJA CEMENT has posted a net profit of Rs 7 bn (up 7.0% YoY). Sales on the other hand came in at Rs 62 bn (down 8.5% YoY). Read on for a complete analysis of AMBUJA CEMENT's quarterly results.

AMBUJA CEMENT 2017-18 Annual Report Analysis (Annual Result Update)

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.

AMBUJA CEMENT 2016-17 Annual Report Analysis (Annual Result Update)

Dec 18, 2018 | Updated on Dec 18, 2018

Here's an analysis of the annual report of AMBUJA CEMENT for 2016-17. It includes a full income statement, balance sheet and cash flow analysis of AMBUJA CEMENT. Also includes updates on the valuation of AMBUJA CEMENT.

More Views on News

Most Popular

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

It's Time to Book Profits(Fast Profits Daily)

Nov 27, 2020

In my first video on Equitymaster, I want to introduce you my proprietary greed and fear index. It's telling us to book some profits in the market.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

Is this Sector the Best Contrarian Bet Right Now?(Profit Hunter)

Nov 23, 2020

The risk reward ratio in this beaten down sector may have finally turned for the better.

The Price of Dying, the Cost of Living(The Honest Truth)

Nov 20, 2020

Ajit Dayal presents a cost benefit analysis of the various types of response to covid around the world.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK AMBUJA CEMENT

  • Track your investment in AMBUJA CEMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

AMBUJA CEMENT - SAURASHTRA CEMENT COMPARISON

COMPARE AMBUJA CEMENT WITH

MARKET STATS