INDIA CEMENTS 2017-18 Annual Report Analysis

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INDIA CEMENTS 2017-18 Annual Report Analysis
Wed, 19 Dec

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 fell 7.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY18 as against 15.4% 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 56.6% YoY.
  • Net profit margins during the year declined from 2.8% in FY17 to 1.3% in FY18.

INDIA CEMENTS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 58,609 54,323 -7.3%
Other income Rs m 193 245 27.0%
Total Revenues Rs m 58,802 54,568 -7.2%
Gross profit Rs m 9,003 7,147 -20.6%
Depreciation Rs m 2,760 2,790 1.1%
Interest Rs m 3,800 3,648 -4.0%
Profit before tax Rs m 2,636 954 -63.8%
Tax Rs m 940 192 -79.5%
Profit after tax Rs m 1,631 707 -56.6%
Gross profit margin % 15.4 13.2
Effective tax rate % 35.7 20.2
Net profit margin % 2.8 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -20.5%.
  • Long-term debt stood at Rs 29 billion as compared to Rs 25 billion during FY17, a growth of 18.3%.
  • Current assets rose 1% and stood at Rs 20 billion, while fixed assets fell 1% and stood at Rs 73 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 110 billion as against Rs 109 billion during FY17, thereby witnessing a growth 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 51,749 52,691 1.8
 
Current Liabilities Rs m 24,362 19,356 -20.5
Long-term Debt Rs m 24,515 28,992 18.3
Total Liabilities Rs m 109,497 109,775 0.3
 
Current assets Rs m 19,482 19,682 1.0
Fixed Assets Rs m 73,941 73,222 -1.0
Total Assets Rs m 109,497 109,775 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 98.4% 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 5,633 -26.4%
Cash Flow from Investing Activities Rs m -1,579 -3,132 -
Cash Flow from Financing Activities Rs m -6,050 -2,345 -
Net Cash Flow Rs m 23 156 588.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 5.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 97.7, stands at 41.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.4 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 190.8 176.8
TTM Earnings per share Rs 5.3 2.3
Diluted earnings per share Rs 5.3 2.3
Price to Cash Flow x 6.7 8.4
TTM P/E ratio x 41.1 41.1
Price / Book Value ratio x 0.8 1.1
Market Cap Rs m 29,995 29,996
Dividends per share (Unadj.) Rs 1.0 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1.3x 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 3.2% 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 8.4% 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 5.0% 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 33 43
Interest coverage x 1.7 1.3
Debt to equity ratio x 0.5 0.6
Return on assets % 5.0 4.0
Return on equity % 3.2 1.3
Return on capital employed % 8.4 5.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 171.4 to Rs 97.7, registering a loss of Rs 73.8 or around 43.0%.

Overall, the S&P BSE SENSEX is up 8.6% over the year.

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

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Related Views on News

INDIA CEMENTS Announces Quarterly Results (1QFY20); Net Profit Up 243.4% (Quarterly Result Update)

Aug 8, 2019 | Updated on Aug 8, 2019

For the quarter ended June 2019, INDIA CEMENTS has posted a net profit of Rs 722 m (up 243.4% YoY). Sales on the other hand came in at Rs 15 bn (up 7.9% YoY). Read on for a complete analysis of INDIA CEMENTS's quarterly results.

INDIA CEMENTS Announces Quarterly Results (4QFY19); Net Profit Up 24.3% (Quarterly Result Update)

May 27, 2019 | Updated on May 27, 2019

For the quarter ended March 2019, INDIA CEMENTS has posted a net profit of Rs 438 m (up 24.3% YoY). Sales on the other hand came in at Rs 16 bn (up 11.9% YoY). Read on for a complete analysis of INDIA CEMENTS's quarterly results.

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