AMBUJA CEMENT 2020-21 Annual Report Analysis

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AMBUJA CEMENT 2020-21 Annual Report Analysis
Fri, 31 Dec

AMBUJA CEMENT has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

AMBUJA CEMENT Income Statement Analysis

  • Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 25.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in CY21 as against 19.7% in CY20.
  • Depreciation charges decreased by 0.8% and finance costs increased by 3.9% YoY, respectively.
  • Other income declined by 19.2% YoY.
  • Net profit for the year grew by 19.4% YoY.
  • Net profit margins during the year grew from 12.6% in CY20 to 12.7% in CY21.

AMBUJA CEMENT Income Statement 2020-21

No. of Mths Year Ending 12 Dec-20* 12 Dec-21* % Change
Net Sales Rs m 245,162 289,655 18.1%
Other income Rs m 4,496 3,633 -19.2%
Total Revenues Rs m 249,658 293,288 17.5%
Gross profit Rs m 48,296 60,791 25.9%
Depreciation Rs m 11,618 11,525 -0.8%
Interest Rs m 1,402 1,457 3.9%
Profit before tax Rs m 39,772 51,442 29.3%
Tax Rs m 8,848 14,534 64.3%
Profit after tax Rs m 30,924 36,908 19.4%
Gross profit margin % 19.7 21.0
Effective tax rate % 22.2 28.3
Net profit margin % 12.6 12.7
* 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 CY21 stood at Rs 112 billion as compared to Rs 93 billion in CY20, thereby witnessing an increase of 21.2%.
  • Long-term debt down at Rs 435 million as compared to Rs 436 million during CY20, a fall of 0.2%.
  • Current assets rose 33% and stood at Rs 170 billion, while fixed assets rose 5% and stood at Rs 282 billion in CY21.
  • Overall, the total assets and liabilities for CY21 stood at Rs 452 billion as against Rs 397 billion during CY20, thereby witnessing a growth of 14%.

AMBUJA CEMENT Balance Sheet as on December 2021

No. of Mths Year Ending 12 Dec-20* 12 Dec-21* % Change
Networth Rs m 227,576 253,537 11.4
 
Current Liabilities Rs m 92,604 112,279 21.2
Long-term Debt Rs m 436 435 -0.2
Total Liabilities Rs m 397,178 452,044 13.8
 
Current assets Rs m 128,048 170,224 32.9
Fixed Assets Rs m 269,130 281,820 4.7
Total Assets Rs m 397,178 452,044 13.8
* 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 CY21 stood at Rs 53 billion, an improvement of 9.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY21 stood at Rs -20 billion, an improvement of 52.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during CY21 stood at Rs -5 billion, an improvement of 87% on a YoY basis.
  • Overall, net cash flows for the company during CY21 stood at Rs 28 billion from the Rs -4 billion net cash flows seen during CY20.

AMBUJA CEMENT Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Dec-20 Dec-21
Cash Flow from Operating Activities Rs m 48,323 53,092 9.9%
Cash Flow from Investing Activities Rs m -13,173 -20,071 -
Cash Flow from Financing Activities Rs m -39,562 -5,158 -
Net Cash Flow Rs m -4,412 27,864 -
* 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 18.6, an improvement from the EPS of Rs 15.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 362.4, stands at 21.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-20* 12 Dec-21*
Sales per share (Unadj.) Rs 123.5 145.9
TTM Earnings per share Rs 15.6 18.6
Diluted earnings per share Rs 15.6 18.6
Price to Cash Flow x 15.5 14.0
TTM P/E ratio x 20.3 21.7
Price / Book Value ratio x 1.8 2.7
Market Cap Rs m 405,667 680,034
Dividends per share (Unadj.) Rs 18.0 6.3
* 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 improved and stood at 1.5x during CY21, from 1.4x during CY20. 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 36.3x during CY21, from 29.4x during CY20. 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 14.6% during CY21, from 13.6% during CY21. 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 20.8% during CY21, from 18.1% during CY20. 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 8.5% during CY21, from 8.1% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-20* 12 Dec-21*
Current ratio x 1.4 1.5
Debtors’ Days Days 1 1
Interest coverage x 29.4 36.3
Debt to equity ratio x 0.0 0.0
Return on assets % 8.1 8.5
Return on equity % 13.6 14.6
Return on capital employed % 18.1 20.8
* 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 320.1 to Rs 362.4, registering a gain of Rs 42.3 or around 13.2%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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

Annual Report FAQs

What is the current share price of AMBUJA CEMENT?

AMBUJA CEMENT currently trades at Rs 360.7 per share. You can check out the latest share price performance of AMBUJA CEMENT here...

What was the revenue of AMBUJA CEMENT in CY21? How does it compare to earlier years?

The revenues of AMBUJA CEMENT stood at Rs 293,288 m in CY21, which was up 17.5% compared to Rs 249,658 m reported in CY20.

AMBUJA CEMENT's revenue has grown from Rs 222,474 m in CY17 to Rs 293,288 m in CY21.

Over the past 5 years, the revenue of AMBUJA CEMENT has grown at a CAGR of 7.2%.

What was the net profit of AMBUJA CEMENT in CY21? How does it compare to earlier years?

The net profit of AMBUJA CEMENT stood at Rs 36,908 m in CY21, which was up 19.4% compared to Rs 30,924 m reported in CY20.

This compares to a net profit of Rs 27,632 m in CY19 and a net profit of Rs 29,602 m in CY18.

Over the past 5 years, AMBUJA CEMENT net profit has grown at a CAGR of 17.6%.

What does the cash flow statement of AMBUJA CEMENT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of AMBUJA CEMENT reveals:

  • Cash flow from operations increased in CY21 and stood at Rs 53,092 m as compared to Rs 48,323 m in CY20.
  • Cash flow from investments decreased in CY21 and stood at Rs -20,071 m as compared to Rs -13,173 m in CY20.
  • Cash flow from financial activity increased in CY21 and stood at Rs -5,158 m as compared to Rs -39,562 m in CY20.

Here's the cash flow statement of AMBUJA CEMENT for the past 5 years.

(Rs m)CY17CY18CY19CY20CY21
From Operations34,16217,03447,38748,32353,092
From Investments-7,620-7,662-11,929-13,173-20,071
From Financial Activity-10,147-7,190-6,294-39,562-5,158
Net Cashflow16,6352,19629,188-4,41227,864

What does the Key Ratio analysis of AMBUJA CEMENT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of AMBUJA CEMENT reveals:

  • Operating profit margins witnessed a fall and down at 21.0% in CY21 as against 19.7% in CY20.
  • Net profit margins grew from 12.6% in CY20 to 12.7% in CY21.
  • Debt to Equity ratio for CY21 stood at 0.0 as compared to 0.0 in CY20.

Here's the ratio/financial analysis of AMBUJA CEMENT for the past 5 years.

 CY17CY18CY19CY20CY21
Operating Profit Margin (%)17.614.817.019.721.0
Net Profit Margin (%)8.811.410.212.612.7
Debt to Equity Ratio (x)0.00.00.00.00.0

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