THE RAMCO CEMENTS 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on 30th November, 2020 on account of Guru Nanak Jayanti.

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)

Equitymaster requests your view! Post a comment on "THE RAMCO CEMENTS 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

THE RAMCO CEMENTS Announces Quarterly Results (2QFY21); Net Profit Up 42.1% (Quarterly Result Update)

Nov 4, 2020 | Updated on Nov 4, 2020

For the quarter ended September 2020, THE RAMCO CEMENTS has posted a net profit of Rs 2 bn (up 42.1% YoY). Sales on the other hand came in at Rs 13 bn (down 3.9% YoY). Read on for a complete analysis of THE RAMCO CEMENTS's quarterly results.

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.

More Views on News

Most Popular

Stocks that Could Shine More than Gold After Diwali(Profit Hunter)

Nov 17, 2020

If the markets become volatile over the next few months, do this.

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

How to Build the Best Trading System(Fast Profits Daily)

Nov 20, 2020

In this video, I'll show you how to make the best trading system.

An Eraser and Some Pencils(The Honest Truth)

Nov 17, 2020

Ajit Dayal on the road ahead for the world after covid.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK THE RAMCO CEMENTS

  • Track your investment in THE RAMCO CEMENTS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON THE RAMCO CEMENTS

THE RAMCO CEMENTS - ACC COMPARISON

COMPARE THE RAMCO CEMENTS WITH

MARKET STATS