ITD CEMENTATION INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

ITD CEMENTATION INDIA 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.

ITD CEMENTATION INDIA Income Statement Analysis

• Operating income during the year fell 4.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY21 as against 8.9% in FY20.
• Depreciation charges increased by 3.8% and finance costs increased by 5.9% YoY, respectively.
• Other income grew by 172.0% YoY.
• Net profit for the year declined by 207.3% YoY.
• Net profit margins during the year declined from 0.6% in FY20 to 0.6% in FY21.

ITD CEMENTATION INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	28,607	27,277	-4.6%
Other income	Rs m	46	124	172.0%
Total Revenues	Rs m	28,653	27,402	-4.4%
Gross profit	Rs m	2,547	2,129	-16.4%
Depreciation	Rs m	965	1,002	3.8%
Interest	Rs m	1,305	1,382	5.9%
Profit before tax	Rs m	323	-130	-140.4%
Tax	Rs m	163	41	-75.2%
Profit after tax	Rs m	159	-171	-207.3%
Gross profit margin	%	8.9	7.8
Effective tax rate	%	50.6	-31.1
Net profit margin	%	0.6	-0.6

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ITD CEMENTATION INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 20 billion as compared to Rs 20 billion in FY20, thereby witnessing an decrease of -0.2%.
• Long-term debt stood at Rs 870 million as compared to Rs 166 million during FY20, a growth of 422.5%.
• Current assets rose 5% and stood at Rs 22 billion, while fixed assets fell 5% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 32 billion as against Rs 31 billion during FY20, thereby witnessing a growth of 2%.

ITD CEMENTATION INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,526	10,657	1.2
Current Liabilities	Rs m	19,674	19,634	-0.2
Long-term Debt	Rs m	166	870	422.5
Total Liabilities	Rs m	31,228	31,833	1.9
Current assets	Rs m	20,816	21,951	5.5
Fixed Assets	Rs m	10,412	9,881	-5.1
Total Assets	Rs m	31,228	31,833	1.9

ITD CEMENTATION INDIA Cash Flow Statement Analysis

• ITD CEMENTATION INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -841 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY20.

ITD CEMENTATION INDIA 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	4,469	2,350	-47.4%
Cash Flow from Investing Activities	Rs m	-874	-841	-
Cash Flow from Financing Activities	Rs m	-2,121	-2,604	-
Net Cash Flow	Rs m	1,474	-1,096	-

Current Valuations for ITD CEMENTATION INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 77.6, stands at -78.0 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 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	166.5	158.8
TTM Earnings per share	Rs	0.9	-1.0
Diluted earnings per share	Rs	0.9	-1.0
Price to Cash Flow	x	4.5	12.8
TTM P/E ratio	x	32.0	-78.0
Price / Book Value ratio	x	1.3	1.0
Market Cap	Rs m	13,846	10,604
Dividends per share (Unadj.)	Rs	0.3	0.1

Ratio Analysis for ITD CEMENTATION INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.1x 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 deteriorated and stood at 0.9x during FY21, from 1.2x 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 declined and down at -1.6% during FY21, from 1.5% 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 10.9% during FY21, from 15.2% 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 declined and down at 3.8% during FY21, from 4.7% 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	1.1	1.1
Debtors’ Days	Days	747	710
Interest coverage	x	1.2	0.9
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.7	3.8
Return on equity	%	1.5	-1.6
Return on capital employed	%	15.2	10.9

To see how ITD CEMENTATION INDIA has performed over the last 5 years, please visit here.

ITD CEMENTATION INDIA Share Price Performance

Over the last one year, ITD CEMENTATION INDIA share price has moved up from Rs 29.7 to Rs 77.6, registering a gain of Rs 48.0 or around 161.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

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

Read: Latest Annual Report Analysis of ITD CEMENTATION INDIA