HEIDELBERG CEMENT 2018-19 Annual Report Analysis

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HEIDELBERG CEMENT 2018-19 Annual Report Analysis
Mon, 23 Sep

HEIDELBERG CEMENT has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

HEIDELBERG CEMENT Income Statement Analysis

  • Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 33.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.7% in FY19 as against 19.2% in FY18.
  • Depreciation charges increased by 0.6% and finance costs increased by 0.4% YoY, respectively.
  • Other income grew by 74.7% YoY.
  • Net profit for the year grew by 65.7% YoY.
  • Net profit margins during the year grew from 7.0% in FY18 to 10.2% in FY19.

HEIDELBERG CEMENT Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 18,895 21,334 12.9%
Other income Rs m 199 348 74.7%
Total Revenues Rs m 19,094 21,682 13.6%
Gross profit Rs m 3,634 4,833 33.0%
Depreciation Rs m 1,012 1,018 0.6%
Interest Rs m 745 748 0.4%
Profit before tax Rs m 2,077 3,416 64.5%
Tax Rs m 745 1,210 62.4%
Profit after tax Rs m 1,332 2,207 65.7%
Gross profit margin % 19.2 22.7
Effective tax rate % 35.9 35.4
Net profit margin % 7.0 10.2
* 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 FY19 stood at Rs 9 billion as compared to Rs 9 billion in FY18, thereby witnessing an increase of 6.5%.
  • Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY18, a fall of 16.5%.
  • Current assets rose 34% and stood at Rs 9 billion, while fixed assets fell 3% and stood at Rs 18 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 27 billion as against Rs 25 billion during FY18, thereby witnessing a growth of 6%.

HEIDELBERG CEMENT Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 10,464 11,712 11.9
 
Current Liabilities Rs m 8,575 9,133 6.5
Long-term Debt Rs m 4,692 3,918 -16.5
Total Liabilities Rs m 25,328 26,955 6.4
 
Current assets Rs m 6,608 8,874 34.3
Fixed Assets Rs m 18,141 17,541 -3.3
Total Assets Rs m 25,328 26,955 6.4
* 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 FY19 stood at Rs 4 billion, an improvement of 4.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -263 million, an improvement of 92.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during FY18.

HEIDELBERG CEMENT Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 3,771 3,929 4.2%
Cash Flow from Investing Activities Rs m -137 -263 -
Cash Flow from Financing Activities Rs m -1,655 -2,417 -
Net Cash Flow Rs m 1,980 1,249 -36.9%
* 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 9.7, an improvement from the EPS of Rs 5.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 187.6, stands at 17.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 83.4 94.1
TTM Earnings per share Rs 5.9 9.7
Diluted earnings per share Rs 5.9 9.7
Price to Cash Flow x 18.1 13.2
TTM P/E ratio x 17.1 17.1
Price / Book Value ratio x 3.2 3.0
Market Cap Rs m 42,512 42,512
Dividends per share (Unadj.) Rs 2.5 4.0
* 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 1.0x during FY19, from 0.8x during FY18. 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 5.6x during FY19, from 3.8x during FY18. 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 18.8% during FY19, from 12.7% during FY19. 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 26.6% during FY19, from 18.6% during FY18. 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 11.0% during FY19, from 8.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.8 1.0
Debtors’ Days Days 4 4
Interest coverage x 3.8 5.6
Debt to equity ratio x 0.4 0.3
Return on assets % 8.2 11.0
Return on equity % 12.7 18.8
Return on capital employed % 18.6 26.6
* 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 152.2 to Rs 187.6, registering a gain of Rs 35.4 or around 23.3%.

Overall, the S&P BSE SENSEX is up 5.3% 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 (2QFY20); Net Profit Up 16.1% (Quarterly Result Update)

Nov 6, 2019 | Updated on Nov 6, 2019

For the quarter ended September 2019, HEIDELBERG CEMENT has posted a net profit of Rs 582 m (up 16.1% YoY). Sales on the other hand came in at Rs 5 bn (up 7.5% YoY). Read on for a complete analysis of HEIDELBERG CEMENT's quarterly results.

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Jul 31, 2019 | Updated on Jul 31, 2019

For the quarter ended June 2019, HEIDELBERG CEMENT has posted a net profit of Rs 790 m (up 54.6% YoY). Sales on the other hand came in at Rs 6 bn (up 9.1% YoY). Read on for a complete analysis of HEIDELBERG CEMENT's quarterly results.

HEIDELBERG CEMENT 2017-18 Annual Report Analysis (Annual Result Update)

Dec 21, 2018 | Updated on Dec 21, 2018

Here's an analysis of the annual report of HEIDELBERG CEMENT for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of HEIDELBERG CEMENT. Also includes updates on the valuation of HEIDELBERG CEMENT.

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