UDAIPUR CEMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

UDAIPUR CEMENT 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.

UDAIPUR CEMENT Income Statement Analysis

• Operating income during the year rose 7.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.3% in FY21 as against 18.2% in FY20.
• Depreciation charges decreased by 1.0% and finance costs decreased by 17.2% YoY, respectively.
• Other income grew by 130.6% YoY.
• Net profit for the year grew by 254.4% YoY.
• Net profit margins during the year grew from 2.3% in FY20 to 7.5% in FY21.

UDAIPUR CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,858	7,351	7.2%
Other income	Rs m	11	26	130.6%
Total Revenues	Rs m	6,869	7,377	7.4%
Gross profit	Rs m	1,249	1,418	13.5%
Depreciation	Rs m	338	334	-1.0%
Interest	Rs m	650	538	-17.2%
Profit before tax	Rs m	273	571	109.2%
Tax	Rs m	118	21	-81.8%
Profit after tax	Rs m	155	550	254.4%
Gross profit margin	%	18.2	19.3
Effective tax rate	%	43.2	3.7
Net profit margin	%	2.3	7.5

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UDAIPUR CEMENT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 4 billion in FY20, thereby witnessing an decrease of -51.2%.
• Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY20, a growth of 56.5%.
• Current assets rose 36% and stood at Rs 2 billion, while fixed assets rose 2% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 7%.

UDAIPUR CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,836	2,468	34.4
Current Liabilities	Rs m	3,746	1,828	-51.2
Long-term Debt	Rs m	3,341	5,230	56.5
Total Liabilities	Rs m	8,581	9,175	6.9
Current assets	Rs m	1,338	1,816	35.7
Fixed Assets	Rs m	7,243	7,359	1.6
Total Assets	Rs m	8,581	9,175	6.9

UDAIPUR CEMENT Cash Flow Statement Analysis

• UDAIPUR CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 66.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 236.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -615 million, an improvement of 22% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 115 million from the Rs 2 million net cash flows seen during FY20.

UDAIPUR CEMENT 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	1,126	1,871	66.1%
Cash Flow from Investing Activities	Rs m	-339	-1,141	-
Cash Flow from Financing Activities	Rs m	-785	-615	-
Net Cash Flow	Rs m	2	115	4,670.8%

Current Valuations for UDAIPUR CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an improvement from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 20.3, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	22.0	23.6
TTM Earnings per share	Rs	0.5	1.8
Diluted earnings per share	Rs	0.5	1.8
Price to Cash Flow	x	4.7	6.4
TTM P/E ratio	x	15.0	11.5
Price / Book Value ratio	x	2.1	2.3
Market Cap	Rs m	3,924	5,669
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UDAIPUR CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.4x 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 1.4x 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 22.3% during FY21, from 8.5% 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 declined and down at 14.4% during FY21, from 17.8% 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 11.9% during FY21, from 9.4% 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	0.4	1.0
Debtors’ Days	Days	0	0
Interest coverage	x	1.4	2.1
Debt to equity ratio	x	1.8	2.1
Return on assets	%	9.4	11.9
Return on equity	%	8.5	22.3
Return on capital employed	%	17.8	14.4

To see how UDAIPUR CEMENT has performed over the last 5 years, please visit here.

UDAIPUR CEMENT Share Price Performance

Over the last one year, UDAIPUR CEMENT share price has moved up from Rs 7.5 to Rs 20.3, registering a gain of Rs 12.8 or around 170.7%.

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

(To know more, check out historical annual results for UDAIPUR CEMENT and quarterly results for UDAIPUR CEMENT)

Read: Latest Annual Report Analysis of UDAIPUR CEMENT