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

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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

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%

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

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

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)

Read: Latest Annual Report Analysis of MANGALAM CEMENT