THE RAMCO CEMENTS 2018-19 Annual Report Analysis

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THE RAMCO CEMENTS 2018-19 Annual Report Analysis
Mon, 23 Sep

THE RAMCO CEMENTS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

THE RAMCO CEMENTS Income Statement Analysis

  • Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.2% in FY19 as against 25.1% in FY18.
  • Depreciation charges increased by 2.1% and finance costs decreased by 14.3% YoY, respectively.
  • Other income declined by 23.6% YoY.
  • Net profit for the year declined by 9.5% YoY.
  • Net profit margins during the year declined from 12.7% in FY18 to 9.9% in FY19.

THE RAMCO CEMENTS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 44,250 51,623 16.7%
Other income Rs m 327 250 -23.6%
Total Revenues Rs m 44,577 51,873 16.4%
Gross profit Rs m 11,123 10,445 -6.1%
Depreciation Rs m 2,937 3,000 2.1%
Interest Rs m 600 514 -14.3%
Profit before tax Rs m 7,913 7,181 -9.3%
Tax Rs m 2,312 2,106 -8.9%
Profit after tax Rs m 5,651 5,114 -9.5%
Gross profit margin % 25.1 20.2
Effective tax rate % 29.2 29.3
Net profit margin % 12.7 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THE RAMCO CEMENTS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 21 billion as compared to Rs 18 billion in FY18, thereby witnessing an increase of 13.4%.
  • Long-term debt stood at Rs 7 billion as compared to Rs 4 billion during FY18, a growth of 67.4%.
  • Current assets rose 6% and stood at Rs 14 billion, while fixed assets rose 14% and stood at Rs 65 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 82 billion as against Rs 72 billion during FY18, thereby witnessing a growth of 14%.

THE RAMCO CEMENTS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 41,126 45,370 10.3
 
Current Liabilities Rs m 18,240 20,676 13.4
Long-term Debt Rs m 4,188 7,012 67.4
Total Liabilities Rs m 71,695 82,038 14.4
 
Current assets Rs m 12,986 13,805 6.3
Fixed Assets Rs m 57,105 64,845 13.6
Total Assets Rs m 71,695 82,038 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THE RAMCO CEMENTS Cash Flow Statement Analysis

  • THE RAMCO CEMENTS's cash flow from operating activities (CFO) during FY19 stood at Rs 8 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -12 billion, an improvement of 145.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 7 billion, an improvement of 182% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 2 billion from the Rs -2 billion net cash flows seen during FY18.

THE RAMCO CEMENTS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 11,242 7,926 -29.5%
Cash Flow from Investing Activities Rs m -4,900 -12,021 -
Cash Flow from Financing Activities Rs m -7,930 6,529 -
Net Cash Flow Rs m -1,587 2,434 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for THE RAMCO CEMENTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.7, an decline from the EPS of Rs 24.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 754.5, stands at 31.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 187.8 219.1
TTM Earnings per share Rs 24.0 21.7
Diluted earnings per share Rs 23.7 21.5
Price to Cash Flow x 20.8 22.2
TTM P/E ratio x 31.0 31.3
Price / Book Value ratio x 4.2 3.7
Market Cap Rs m 177,733 179,559
Dividends per share (Unadj.) Rs 3.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for THE RAMCO CEMENTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY19, from 0.7x during FY18. 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 15.0x during FY19, from 14.2x during FY18. 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 11.3% during FY19, from 13.7% during FY19. 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 14.8% during FY19, from 18.9% during FY18. 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 6.9% during FY19, from 8.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.7 0.7
Debtors’ Days Days 37 35
Interest coverage x 14.2 15.0
Debt to equity ratio x 0.1 0.2
Return on assets % 8.7 6.9
Return on equity % 13.7 11.3
Return on capital employed % 18.9 14.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how THE RAMCO CEMENTS has performed over the last 5 years, please visit here.

THE RAMCO CEMENTS Share Price Performance

Over the last one year, THE RAMCO CEMENTS share price has moved up from Rs 643.7 to Rs 754.5, registering a gain of Rs 110.8 or around 17.2%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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Related Views on News

THE RAMCO CEMENTS Announces Quarterly Results (3QFY20); Net Profit Down 5.5% (Quarterly Result Update)

Jan 30, 2020 | Updated on Jan 30, 2020

For the quarter ended December 2019, THE RAMCO CEMENTS has posted a net profit of Rs 956 m (down 5.5% YoY). Sales on the other hand came in at Rs 13 bn (up 5.9% YoY). Read on for a complete analysis of THE RAMCO CEMENTS's quarterly results.

THE RAMCO CEMENTS Announces Quarterly Results (2QFY20); Net Profit Up 46.9% (Quarterly Result Update)

Nov 5, 2019 | Updated on Nov 5, 2019

For the quarter ended September 2019, THE RAMCO CEMENTS has posted a net profit of Rs 2 bn (up 46.9% YoY). Sales on the other hand came in at Rs 13 bn (up 11.2% YoY). Read on for a complete analysis of THE RAMCO CEMENTS's quarterly results.

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