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INDIA CEMENTS 2017-18 Annual Report Analysis
Sat, 31 Mar

INDIA CEMENTS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

INDIA CEMENTS Income Statement Analysis

  • Operating income during the year rose 14.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.9% in FY18 as against 19.9% in FY17.
  • Depreciation charges increased by 1.1% and finance costs decreased by 4.0% YoY, respectively.
  • Other income grew by 27.0% YoY.
  • Net profit for the year declined by 55.3% YoY.
  • Net profit margins during the year declined from 3.5% in FY17 to 1.4% in FY18.

INDIA CEMENTS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 44,641 51,019 14.3%
Other income Rs m 193 245 27.0%
Total Revenues Rs m 44,834 51,264 14.3%
Gross profit Rs m 8,882 7,090 -20.2%
Depreciation Rs m 2,760 2,790 1.1%
Interest Rs m 3,800 3,648 -4.0%
Profit before tax Rs m 2,515 897 -64.3%
Tax Rs m 940 192 -79.5%
Profit after tax Rs m 1,575 705 -55.3%
Gross profit margin % 19.9 13.9
Effective tax rate % 37.4 21.4
Net profit margin % 3.5 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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INDIA CEMENTS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 19 billion as compared to Rs 24 billion in FY17, thereby witnessing an decrease of -20.8%.
  • Long-term debt stood at Rs 29 billion as compared to Rs 25 billion during FY17, a growth of 17.4%.
  • Current assets fell 0% and stood at Rs 19 billion, while fixed assets rose 0% and stood at Rs 90 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 109 billion as against Rs 109 billion during FY17, thereby witnessing a fall of 0%.

INDIA CEMENTS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 51,739 52,485 1.4
 
Current Liabilities Rs m 24,362 19,291 -20.8
Long-term Debt Rs m 24,515 28,782 17.4
Total Liabilities Rs m 109,497 109,456 0.0
 
Current assets Rs m 19,482 19,412 -0.4
Fixed Assets Rs m 90,015 90,044 0.0
Total Assets Rs m 109,497 109,456 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INDIA CEMENTS Cash Flow Statement Analysis

  • INDIA CEMENTS's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 93.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 61% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 156 million from the Rs 23 million net cash flows seen during FY17.

INDIA CEMENTS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 7,652 5,561 -27.3%
Cash Flow from Investing Activities Rs m -1,579 -3,060 -
Cash Flow from Financing Activities Rs m -6,050 -2,345 -
Net Cash Flow Rs m 23 156 587.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INDIA CEMENTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an decline from the EPS of Rs 5.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 141.7, stands at 43.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 145.3 165.6
TTM Earnings per share Rs 5.1 2.3
Diluted earnings per share Rs 5.1 2.3
Price to Cash Flow x 11.6 16.0
TTM P/E ratio x 28.6 43.6
Price / Book Value ratio x 0.8 1.1
Market Cap Rs m 39,457 55,776
Dividends per share (Unadj.) Rs 1.0 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INDIA CEMENTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.8x during FY17. 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 deteriorated and stood at 1.2x during FY18, from 1.7x during FY17. 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 1.3% during FY18, from 3.0% during FY18. 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 5.6% during FY18, from 8.3% during FY17. 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 4.0% during FY18, from 4.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.8 1.0
Debtors’ Days Days 428 462
Interest coverage x 1.7 1.2
Debt to equity ratio x 0.5 0.5
Return on assets % 4.9 4.0
Return on equity % 3.0 1.3
Return on capital employed % 8.3 5.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how INDIA CEMENTS has performed over the last 5 years, please visit here.

INDIA CEMENTS Share Price Performance

Over the last one year, INDIA CEMENTS share price has moved down from Rs 162.6 to Rs 141.7, registering a loss of Rs 20.9 or around 12.9%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for INDIA CEMENTS and quarterly results for INDIA CEMENTS)

Annual Report FAQs

What is the current share price of INDIA CEMENTS?

INDIA CEMENTS currently trades at Rs 202.2 per share. You can check out the latest share price performance of INDIA CEMENTS here...

What was the revenue of INDIA CEMENTS in FY18? How does it compare to earlier years?

The revenues of INDIA CEMENTS stood at Rs 51,264 m in FY18, which was up 14.3% compared to Rs 44,834 m reported in FY17.

INDIA CEMENTS' revenue has grown from Rs 44,483 m in FY14 to Rs 51,264 m in FY18.

Over the past 5 years, the revenue of INDIA CEMENTS has grown at a CAGR of 3.6%.

What was the net profit of INDIA CEMENTS in FY18? How does it compare to earlier years?

The net profit of INDIA CEMENTS stood at Rs 705 m in FY18, which was down -55.3% compared to Rs 1,575 m reported in FY17.

This compares to a net profit of Rs 1,163 m in FY16 and a net loss of Rs -12 m in FY15.

Over the past 5 years, INDIA CEMENTS net profit has grown at a CAGR of NaN%.

What does the cash flow statement of INDIA CEMENTS 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 INDIA CEMENTS reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 5,561 m as compared to Rs 7,652 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -3,060 m as compared to Rs -1,579 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -2,345 m as compared to Rs -6,050 m in FY17.

Here's the cash flow statement of INDIA CEMENTS for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations5,1616,4519,6377,6525,561
From Investments-1,844-1,235-2,200-1,579-3,060
From Financial Activity-3,349-5,203-7,571-6,050-2,345
Net Cashflow-3312-13523156

What does the Key Ratio analysis of INDIA CEMENTS 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 INDIA CEMENTS reveals:

  • Operating profit margins witnessed a fall and stood at 13.9% in FY18 as against 19.9% in FY17.
  • Net profit margins declined from 3.5% in FY17 to 1.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.5 as compared to 0.5 in FY17.

Here's the ratio/financial analysis of INDIA CEMENTS for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)10.417.320.519.913.9
Net Profit Margin (%)-5.50.02.73.51.4
Debt to Equity Ratio (x)0.60.70.40.50.5

Read: Latest Annual Report Analysis of INDIA CEMENTS

 

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1 Responses to "INDIA CEMENTS 2017-18 Annual Report Analysis"

M KESAVAN

Feb 8, 2021

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