INDIA CEMENTS 2020-21 Annual Report Analysis

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INDIA CEMENTS 2020-21 Annual Report Analysis
Wed, 20 Oct

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
* 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 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
* 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 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 -
* 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 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 205.9, stands at 27.1 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 1.0 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 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 20.6 14.0
TTM P/E ratio x 27.1 27.1
Price / Book Value ratio x 0.5 0.8
Market Cap Rs m 63,792 63,792
Dividends per share (Unadj.) Rs 0.6 1.0
* 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 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
* 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 up from Rs 122.1 to Rs 205.9, registering a gain of Rs 83.8 or around 68.7%.

Overall, the S&P BSE SENSEX is up 52.6% over the year.

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

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