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HEIDELBERG CEMENT 2017-18 Annual Report Analysis

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HEIDELBERG CEMENT 2017-18 Annual Report Analysis
Fri, 21 Dec

HEIDELBERG CEMENT has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HEIDELBERG CEMENT Income Statement Analysis

  • Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 30.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.2% in FY18 as against 16.2% in FY17.
  • Depreciation charges increased by 2.0% and finance costs decreased by 17.1% YoY, respectively.
  • Other income declined by 15.9% YoY.
  • Net profit for the year grew by 74.8% YoY.
  • Net profit margins during the year grew from 4.4% in FY17 to 7.0% in FY18.

HEIDELBERG CEMENT Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 17,175 18,895 10.0%
Other income Rs m 237 199 -15.9%
Total Revenues Rs m 17,412 19,094 9.7%
Gross profit Rs m 2,789 3,634 30.3%
Depreciation Rs m 992 1,012 2.0%
Interest Rs m 898 745 -17.1%
Profit before tax Rs m 1,136 2,077 82.8%
Tax Rs m 374 745 99.1%
Profit after tax Rs m 762 1,332 74.8%
Gross profit margin % 16.2 19.2
Effective tax rate % 32.9 35.9
Net profit margin % 4.4 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HEIDELBERG CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 9 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 14.1%.
  • Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY17, a fall of 18.4%.
  • Current assets rose 42% and stood at Rs 7 billion, while fixed assets fell 4% and stood at Rs 18 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 25 billion as against Rs 24 billion during FY17, thereby witnessing a growth of 5%.

HEIDELBERG CEMENT Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 9,670 10,464 8.2
 
Current Liabilities Rs m 7,518 8,575 14.1
Long-term Debt Rs m 5,752 4,692 -18.4
Total Liabilities Rs m 24,076 25,328 5.2
 
Current assets Rs m 4,659 6,608 41.8
Fixed Assets Rs m 18,834 18,141 -3.7
Total Assets Rs m 24,076 25,328 5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HEIDELBERG CEMENT Cash Flow Statement Analysis

  • HEIDELBERG CEMENT's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 6.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -137 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 45% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 64 million net cash flows seen during FY17.

HEIDELBERG CEMENT Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,614 3,846 6.4%
Cash Flow from Investing Activities Rs m -402 -137 -
Cash Flow from Financing Activities Rs m -3,147 -1,729 -
Net Cash Flow Rs m 64 1,980 2,979.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HEIDELBERG CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an improvement from the EPS of Rs 3.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 158.5, stands at 19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 75.8 83.4
TTM Earnings per share Rs 3.4 5.9
Diluted earnings per share Rs 3.4 5.9
Price to Cash Flow x 20.5 15.3
TTM P/E ratio x 19.4 19.4
Price / Book Value ratio x 2.7 3.2
Market Cap Rs m 35,918 35,918
Dividends per share (Unadj.) Rs 2.0 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HEIDELBERG CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.6x during FY17. 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 deteriorated and stood at 3.8x during FY18, from 2.3x during FY17. 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 12.7% during FY18, from 7.9% during FY18. 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 18.6% during FY18, from 13.2% during FY17. 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 8.2% during FY18, from 6.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.6 0.8
Debtors’ Days Days 3 4
Interest coverage x 2.3 3.8
Debt to equity ratio x 0.6 0.4
Return on assets % 6.9 8.2
Return on equity % 7.9 12.7
Return on capital employed % 13.2 18.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HEIDELBERG CEMENT Share Price Performance

Over the last one year, HEIDELBERG CEMENT share price has moved up from Rs 159.4 to Rs 158.5, registering a loss of Rs 0.9 or around 0.6%.

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

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HEIDELBERG CEMENT Announces Quarterly Results (4QFY19); Net Profit Up 16.9% (Quarterly Result Update)

May 27, 2019 | Updated on May 27, 2019

For the quarter ended March 2019, HEIDELBERG CEMENT has posted a net profit of Rs 609 m (up 16.9% YoY). Sales on the other hand came in at Rs 5 bn (up 2.3% YoY). Read on for a complete analysis of HEIDELBERG CEMENT's quarterly results.

HEIDELBERG CEMENT Announces Quarterly Results (3QFY19); Net Profit Up 84.4% (Quarterly Result Update)

Feb 14, 2019 | Updated on Feb 14, 2019

For the quarter ended December 2018, HEIDELBERG CEMENT has posted a net profit of Rs 586 m (up 84.4% YoY). Sales on the other hand came in at Rs 6 bn (up 14.8% YoY). Read on for a complete analysis of HEIDELBERG CEMENT's quarterly results.

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