MANGALAM CEMENT 2020-21 Annual Report Analysis

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MANGALAM CEMENT 2020-21 Annual Report Analysis
Tue, 9 Nov

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 6.0% in FY20 to 8.2% 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 % 6.0 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* 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 463.0, stands at 9.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.4 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 28.4 40.8
Price to Cash Flow x 9.9 7.4
TTM P/E ratio x 9.1 9.1
Price / Book Value ratio x 1.1 0.9
Market Cap Rs m 12,359 12,359
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 203.6 to Rs 463.0, registering a gain of Rs 259.5 or around 127.5%.

Overall, the S&P BSE SENSEX is up 48.8% over the year.

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

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