AMBUJA CEMENT 2019-20 Annual Report Analysis

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AMBUJA CEMENT 2019-20 Annual Report Analysis
Thu, 8 Jul

AMBUJA CEMENT has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

AMBUJA CEMENT Income Statement Analysis

  • Operating income during the year fell 9.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in CY20 as against 17.0% in CY19.
  • Depreciation charges increased by 0.8% and finance costs decreased by 17.5% YoY, respectively.
  • Other income declined by 22.6% YoY.
  • Net profit for the year grew by 11.9% YoY.
  • Net profit margins during the year grew from 10.0% in CY19 to 12.4% in CY20.

AMBUJA CEMENT Income Statement 2019-20

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Net Sales Rs m 271,036 245,162 -9.5%
Other income Rs m 5,807 4,496 -22.6%
Total Revenues Rs m 276,843 249,658 -9.8%
Gross profit Rs m 45,970 48,296 5.1%
Depreciation Rs m 11,525 11,618 0.8%
Interest Rs m 1,699 1,402 -17.5%
Profit before tax Rs m 38,553 39,772 3.2%
Tax Rs m 10,922 8,848 -19.0%
Profit after tax Rs m 27,632 30,924 11.9%
Gross profit margin % 17.0 19.7
Effective tax rate % 28.3 22.2
Net profit margin % 10.0 12.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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AMBUJA CEMENT Balance Sheet Analysis

  • The company's current liabilities during CY20 stood at Rs 93 billion as compared to Rs 91 billion in CY19, thereby witnessing an increase of 2.1%.
  • Long-term debt stood at Rs 436 million as compared to Rs 353 million during CY19, a growth of 23.6%.
  • Current assets fell 11% and stood at Rs 128 billion, while fixed assets rose 4% and stood at Rs 269 billion in CY20.
  • Overall, the total assets and liabilities for CY20 stood at Rs 397 billion as against Rs 402 billion during CY19, thereby witnessing a fall of 1%.

AMBUJA CEMENT Balance Sheet as on December 2020

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Networth Rs m 240,780 227,576 -5.5
 
Current Liabilities Rs m 90,703 92,604 2.1
Long-term Debt Rs m 353 436 23.6
Total Liabilities Rs m 401,782 397,178 -1.1
 
Current assets Rs m 143,190 128,048 -10.6
Fixed Assets Rs m 258,592 269,130 4.1
Total Assets Rs m 401,782 397,178 -1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AMBUJA CEMENT Cash Flow Statement Analysis

  • AMBUJA CEMENT's cash flow from operating activities (CFO) during CY20 stood at Rs 48 billion, an improvement of 2.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY20 stood at Rs -13 billion, an improvement of 10.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during CY20 stood at Rs -40 billion on a YoY basis.
  • Overall, net cash flows for the company during CY20 stood at Rs -4 billion from the Rs 29 billion net cash flows seen during CY19.

AMBUJA CEMENT Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Dec-19 Dec-20
Cash Flow from Operating Activities Rs m 47,387 48,324 2.0%
Cash Flow from Investing Activities Rs m -11,929 -13,173 -
Cash Flow from Financing Activities Rs m -6,294 -39,562 -
Net Cash Flow Rs m 29,188 -4,412 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AMBUJA CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.6, an improvement from the EPS of Rs 13.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 358.6, stands at 19.9 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 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Sales per share (Unadj.) Rs 136.5 123.5
TTM Earnings per share Rs 13.9 15.6
Diluted earnings per share Rs 13.9 15.6
Price to Cash Flow x 18.2 16.7
TTM P/E ratio x 19.9 19.9
Price / Book Value ratio x 1.8 1.8
Market Cap Rs m 712,052 712,052
Dividends per share (Unadj.) Rs 1.5 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AMBUJA CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during CY20, from 1.6x during CY19. 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 29.4x during CY20, from 23.7x during CY19. 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 13.6% during CY20, from 11.5% during CY20. 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 18.1% during CY20, from 16.7% during CY19. 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 8.1% during CY20, from 7.3% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Current ratio x 1.6 1.4
Debtors’ Days Days 14 8
Interest coverage x 23.7 29.4
Debt to equity ratio x 0.0 0.0
Return on assets % 7.3 8.1
Return on equity % 11.5 13.6
Return on capital employed % 16.7 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 195.6 to Rs 358.6, registering a gain of Rs 163.0 or around 83.3%.

Overall, the S&P BSE SENSEX is up 43.9% over the year.

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

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