INDIA CEMENTS 2022-23 Annual Report Analysis

Wed, 30 Aug

INDIA CEMENTS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

INDIA CEMENTS Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 91.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.8% in FY23 as against 10.0% in FY22.
• Depreciation charges decreased by 2.8% and finance costs increased by 22.3% YoY, respectively.
• Other income grew by 64.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.4% in FY22 to 3.0% in FY23.

INDIA CEMENTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	48,584	56,081	15.4%
Other income	Rs m	244	401	64.5%
Total Revenues	Rs m	48,827	56,482	15.7%
Gross profit	Rs m	4,843	431	-91.1%
Depreciation	Rs m	2,255	2,193	-2.8%
Interest	Rs m	1,977	2,417	22.3%
Profit before tax	Rs m	855	-3,778	NA
Tax	Rs m	195	-2,080	NA
Profit after tax	Rs m	660	-1,698	NA
Gross profit margin	%	10.0	0.8
Effective tax rate	%	22.8	55.0
Net profit margin	%	1.4	-3.0

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INDIA CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 28 billion as compared to Rs 27 billion in FY22, thereby witnessing an increase of 3.5%.
• Long-term debt down at Rs 18 billion as compared to Rs 19 billion during FY22, a fall of 7.1%.
• Current assets rose 34% and stood at Rs 34 billion, while fixed assets fell 15% and stood at Rs 80 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 115 billion as against Rs 120 billion during FY22, thereby witnessing a fall of 5%.

INDIA CEMENTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	59,470	57,763	-2.9
Current Liabilities	Rs m	27,307	28,265	3.5
Long-term Debt	Rs m	19,386	18,012	-7.1
Total Liabilities	Rs m	120,430	114,672	-4.8
Current assets	Rs m	24,990	33,597	34.4
Fixed Assets	Rs m	95,014	80,404	-15.4
Total Assets	Rs m	120,430	114,672	-4.8

INDIA CEMENTS Cash Flow Statement Analysis

• INDIA CEMENTS's cash flow from operating activities (CFO) during FY23 stood at Rs -195 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 186 million from the Rs 62 million net cash flows seen during FY22.

INDIA CEMENTS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	4,390	-195	-
Cash Flow from Investing Activities	Rs m	-2,501	4,348	-
Cash Flow from Financing Activities	Rs m	-1,827	-3,968	-
Net Cash Flow	Rs m	62	186	201.6%

Current Valuations for INDIA CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an decline from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 241.4, stands at -22.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 139.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	156.8	181.0
TTM Earnings per share	Rs	2.1	-5.5
Diluted earnings per share	Rs	2.1	-5.5
Price to Cash Flow	x	22.3	139.1
TTM P/E ratio	x	98.4	-22.9
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	64,280	68,797
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for INDIA CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 0.9x during FY22. 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 -0.6x during FY23, from 1.4x during FY22. 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 -2.9% during FY23, from 1.1% during FY23. 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 -1.8% during FY23, from 3.6% during FY22. 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 0.6% during FY23, from 2.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.9	1.2
Debtors’ Days	Days	700	537
Interest coverage	x	1.4	-0.6
Debt to equity ratio	x	0.3	0.3
Return on assets	%	2.2	0.6
Return on equity	%	1.1	-2.9
Return on capital employed	%	3.6	-1.8

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 228.5 to Rs 241.4, registering a gain of Rs 12.9 or around 5.6%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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