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MANGALAM CEMENT 2020-21 Annual Report Analysis
Wed, 31 Mar

MANGALAM 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.

MANGALAM CEMENT Income Statement Analysis

  • Operating income during the year rose 5.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.9% in FY21 as against 16.2% in FY20.
  • Depreciation charges increased by 20.4% and finance costs increased by 2.3% YoY, respectively.
  • Other income grew by 10.7% YoY.
  • Net profit for the year grew by 43.6% YoY.
  • Net profit margins during the year grew from 6.2% in FY20 to 8.4% in FY21.

MANGALAM CEMENT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 12,283 12,983 5.7%
Other income Rs m 297 329 10.7%
Total Revenues Rs m 12,580 13,312 5.8%
Gross profit Rs m 1,994 2,585 29.7%
Depreciation Rs m 487 586 20.4%
Interest Rs m 633 647 2.3%
Profit before tax Rs m 1,171 1,681 43.5%
Tax Rs m 412 592 43.4%
Profit after tax Rs m 759 1,090 43.6%
Gross profit margin % 16.2 19.9
Effective tax rate % 35.2 35.2
Net profit margin % 6.2 8.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

MANGALAM CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 7.8%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY20, a growth of 16.5%.
  • Current assets rose 46% and stood at Rs 8 billion, while fixed assets rose 1% and stood at Rs 11 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 18 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 16%.

MANGALAM CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,759 6,815 18.3
 
Current Liabilities Rs m 5,426 5,852 7.8
Long-term Debt Rs m 3,483 4,057 16.5
Total Liabilities Rs m 15,927 18,424 15.7
 
Current assets Rs m 5,315 7,738 45.6
Fixed Assets Rs m 10,612 10,686 0.7
Total Assets Rs m 15,927 18,424 15.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MANGALAM CEMENT Cash Flow Statement Analysis

  • MANGALAM CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 18.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 16.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -549 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 200 million from the Rs 627 million net cash flows seen during FY20.

MANGALAM 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 2,158 2,560 18.6%
Cash Flow from Investing Activities Rs m -1,561 -1,811 -
Cash Flow from Financing Activities Rs m 29 -549 -
Net Cash Flow Rs m 627 200 -68.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MANGALAM CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.8, an improvement from the EPS of Rs 28.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 281.6, stands at 7.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.6 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 460.2 486.4
TTM Earnings per share Rs 28.4 40.8
Diluted earnings per share Rs 27.6 39.6
Price to Cash Flow x 3.3 3.6
TTM P/E ratio x 5.4 7.9
Price / Book Value ratio x 1.1 0.9
Market Cap Rs m 6,080 5,953
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MANGALAM CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.0x 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 3.6x during FY21, from 2.9x 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 16.0% during FY21, from 13.2% 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 improved and stood at 21.4% during FY21, from 19.5% 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 9.4% during FY21, from 8.7% 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 1.0 1.3
Debtors’ Days Days 80 104
Interest coverage x 2.9 3.6
Debt to equity ratio x 0.6 0.6
Return on assets % 8.7 9.4
Return on equity % 13.2 16.0
Return on capital employed % 19.5 21.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 150.0 to Rs 281.6, registering a gain of Rs 131.6 or around 87.7%.

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

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

Annual Report FAQs

What is the current share price of MANGALAM CEMENT?

MANGALAM CEMENT currently trades at Rs 336.2 per share. You can check out the latest share price performance of MANGALAM CEMENT here...

What was the revenue of MANGALAM CEMENT in FY21? How does it compare to earlier years?

The revenues of MANGALAM CEMENT stood at Rs 13,312 m in FY21, which was up 5.8% compared to Rs 12,580 m reported in FY20.

MANGALAM CEMENT's revenue has grown from Rs 7,851 m in FY17 to Rs 13,312 m in FY21.

Over the past 5 years, the revenue of MANGALAM CEMENT has grown at a CAGR of 14.1%.

What was the net profit of MANGALAM CEMENT in FY21? How does it compare to earlier years?

The net profit of MANGALAM CEMENT stood at Rs 1,090 m in FY21, which was up 43.6% compared to Rs 759 m reported in FY20.

This compares to a net loss of Rs -97 m in FY19 and a net profit of Rs 114 m in FY18.

Over the past 5 years, MANGALAM CEMENT net profit has grown at a CAGR of 31.3%.

What does the cash flow statement of MANGALAM CEMENT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of MANGALAM CEMENT reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 2,560 m as compared to Rs 2,158 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -1,811 m as compared to Rs -1,561 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -549 m as compared to Rs 29 m in FY20.

Here's the cash flow statement of MANGALAM CEMENT for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,6348598442,1582,560
From Investments-906-172-1,764-1,561-1,811
From Financial Activity-773-66682829-549
Net Cashflow-4520-93627200

What does the Key Ratio analysis of MANGALAM CEMENT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of MANGALAM CEMENT reveals:

  • Operating profit margins witnessed a fall and down at 19.9% in FY21 as against 16.2% in FY20.
  • Net profit margins grew from 6.2% in FY20 to 8.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.6 as compared to 0.6 in FY20.

Here's the ratio/financial analysis of MANGALAM CEMENT for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)15.47.94.816.219.9
Net Profit Margin (%)4.81.1-0.86.28.4
Debt to Equity Ratio (x)0.50.40.60.60.6

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