MANGALAM CEMENT 2016-17 Annual Report Analysis

Fri, 31 Mar

MANGALAM CEMENT has announced its results for the year ended March 2017. Let us have a look at the detailed performance review of the company during FY16-17.

MANGALAM CEMENT Income Statement Analysis

• Operating income during the year rose 6.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 163.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.4% in FY17 as against 6.3% in FY16.
• Depreciation charges increased by 10.0% and finance costs increased by 3.4% YoY, respectively.
• Other income grew by 214.3% YoY.
• Net profit for the year declined by 270.7% YoY.
• Net profit margins during the year grew from 3.0% in FY16 to 4.8% in FY17.

MANGALAM CEMENT Income Statement 2016-17

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*	% Change
Net Sales	Rs m	7,148	7,645	6.9%
Other income	Rs m	66	207	214.3%
Total Revenues	Rs m	7,214	7,851	8.8%
Gross profit	Rs m	447	1,176	163.1%
Depreciation	Rs m	367	403	10.0%
Interest	Rs m	459	475	3.4%
Profit before tax	Rs m	-313	505	-261.1%
Tax	Rs m	-99	138	-240.2%
Profit after tax	Rs m	-215	366	-270.7%
Gross profit margin	%	6.3	15.4
Effective tax rate	%	31.5	27.4
Net profit margin	%	-3.0	4.8

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MANGALAM CEMENT Balance Sheet Analysis

• The company's current liabilities during FY17 stood at Rs 4 billion as compared to Rs 3 billion in FY16, thereby witnessing an increase of 17.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY16, a fall of 18.7%.
• Current assets fell 4% and stood at Rs 3 billion, while fixed assets rose 3% and stood at Rs 9 billion in FY17.
• Overall, the total assets and liabilities for FY17 stood at Rs 12 billion as against Rs 12 billion during FY16, thereby witnessing a growth of 1%.

MANGALAM CEMENT Balance Sheet as on March 2017

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*	% Change
Networth	Rs m	4,732	5,060	6.9
Current Liabilities	Rs m	3,289	3,865	17.5
Long-term Debt	Rs m	2,805	2,280	-18.7
Total Liabilities	Rs m	12,015	12,131	1.0
Current assets	Rs m	3,108	2,970	-4.4
Fixed Assets	Rs m	8,907	9,160	2.8
Total Assets	Rs m	12,015	12,131	1.0

MANGALAM CEMENT Cash Flow Statement Analysis

• MANGALAM CEMENT's cash flow from operating activities (CFO) during FY17 stood at Rs 2 billion, an improvement of 119.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY17 stood at Rs -906 million, an improvement of 46.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY17 stood at Rs -773 million on a YoY basis.
• Overall, net cash flows for the company during FY17 stood at Rs -45 million from the Rs -1 million net cash flows seen during FY16.

MANGALAM CEMENT Cash Flow Statement 2016-17

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-16	Mar-17
Cash Flow from Operating Activities	Rs m	745	1,634	119.2%
Cash Flow from Investing Activities	Rs m	-618	-906	-
Cash Flow from Financing Activities	Rs m	-128	-773	-
Net Cash Flow	Rs m	-1	-45	-

Current Valuations for MANGALAM CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.7, an improvement from the EPS of Rs -8.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 320.8, stands at 24.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*
Sales per share (Unadj.)	Rs	267.8	286.4
TTM Earnings per share	Rs	-8.0	13.7
Diluted earnings per share	Rs	-7.8	13.3
Price to Cash Flow	x	39.7	10.3
TTM P/E ratio	x	-29.5	24.1
Price / Book Value ratio	x	1.3	1.6
Market Cap	Rs m	6,007	7,890
Dividends per share (Unadj.)	Rs	0.5	0.8

Ratio Analysis for MANGALAM CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY17, from 0.9x during FY16. 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 FY17, from 0.3x during FY16. 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 7.2% during FY17, from -4.5% during FY17. 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 improved and stood at 13.3% during FY17, from 1.9% during FY16. 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 6.9% during FY17, from 2.0% during FY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-16*	12 Mar-17*
Current ratio	x	0.9	0.8
Debtors’ Days	Days	177	164
Interest coverage	x	0.3	2.1
Debt to equity ratio	x	0.6	0.5
Return on assets	%	2.0	6.9
Return on equity	%	-4.5	7.2
Return on capital employed	%	1.9	13.3

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

MANGALAM CEMENT Share Price Performance

Over the last one year, MANGALAM CEMENT share price has moved up from Rs 219.6 to Rs 320.8, registering a gain of Rs 101.2 or around 46.1%.

Overall, the S&P BSE SENSEX is up 16.9% over the year.

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

Read: Latest Annual Report Analysis of MANGALAM CEMENT