INDIA CEMENTS 2020-21 Annual Report Analysis

Wed, 31 Mar

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

INDIA CEMENTS Income Statement Analysis

• Operating income during the year fell 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.5% in FY21 as against 11.2% in FY20.
• Depreciation charges decreased by 3.6% and finance costs decreased by 21.0% YoY, respectively.
• Other income declined by 2.9% YoY.
• Net profit for the year grew by 289.9% YoY.
• Net profit margins during the year grew from 1.0% in FY20 to 4.6% in FY21.

INDIA CEMENTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	51,864	45,106	-13.0%
Other income	Rs m	417	405	-2.9%
Total Revenues	Rs m	52,281	45,510	-13.0%
Gross profit	Rs m	5,810	7,878	35.6%
Depreciation	Rs m	2,559	2,466	-3.6%
Interest	Rs m	3,432	2,710	-21.0%
Profit before tax	Rs m	236	3,107	1,215.8%
Tax	Rs m	-299	1,022	-442.4%
Profit after tax	Rs m	535	2,084	289.9%
Gross profit margin	%	11.2	17.5
Effective tax rate	%	-126.4	32.9
Net profit margin	%	1.0	4.6

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INDIA CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 26 billion as compared to Rs 29 billion in FY20, thereby witnessing an decrease of -10.4%.
• Long-term debt down at Rs 20 billion as compared to Rs 24 billion during FY20, a fall of 17.2%.
• Current assets fell 23% and stood at Rs 18 billion, while fixed assets fell 0% and stood at Rs 93 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 111 billion as against Rs 117 billion during FY20, thereby witnessing a fall of 5%.

INDIA CEMENTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	54,980	57,067	3.8
Current Liabilities	Rs m	28,778	25,794	-10.4
Long-term Debt	Rs m	24,111	19,976	-17.2
Total Liabilities	Rs m	116,696	110,899	-5.0
Current assets	Rs m	23,824	18,384	-22.8
Fixed Assets	Rs m	92,873	92,516	-0.4
Total Assets	Rs m	116,696	110,899	-5.0

INDIA CEMENTS Cash Flow Statement Analysis

• INDIA CEMENTS's cash flow from operating activities (CFO) during FY21 stood at Rs 10 billion, an improvement of 170.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -30 million from the Rs -56 million net cash flows seen during FY20.

INDIA CEMENTS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	3,867	10,464	170.6%
Cash Flow from Investing Activities	Rs m	-2,819	-1,894	-
Cash Flow from Financing Activities	Rs m	-1,103	-8,599	-
Net Cash Flow	Rs m	-56	-30	-

Current Valuations for INDIA CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 167.5, stands at 24.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	167.4	145.5
TTM Earnings per share	Rs	1.7	6.7
Diluted earnings per share	Rs	1.7	6.7
Price to Cash Flow	x	10.6	9.7
TTM P/E ratio	x	61.4	24.9
Price / Book Value ratio	x	0.5	0.8
Market Cap	Rs m	28,635	44,098
Dividends per share (Unadj.)	Rs	0.6	1.0

Ratio Analysis for INDIA CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.8x during FY20. 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 2.1x during FY21, from 1.1x during FY20. 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 3.7% during FY21, from 1.0% during FY21. 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 7.6% during FY21, from 4.6% during FY20. 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 4.3% during FY21, from 3.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.8	0.7
Debtors’ Days	Days	518	456
Interest coverage	x	1.1	2.1
Debt to equity ratio	x	0.4	0.4
Return on assets	%	3.4	4.3
Return on equity	%	1.0	3.7
Return on capital employed	%	4.6	7.6

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 106.0 to Rs 167.5, registering a gain of Rs 61.6 or around 58.1%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of INDIA CEMENTS