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HEIDELBERG CEMENT 2021-22 Annual Report Analysis
Sat, 20 Aug

HEIDELBERG CEMENT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HEIDELBERG CEMENT Income Statement Analysis

  • Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 14.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.9% in FY22 as against 23.9% in FY21.
  • Depreciation charges increased by 0.9% and finance costs decreased by 28.3% YoY, respectively.
  • Other income grew by 5.6% YoY.
  • Net profit for the year declined by 19.9% YoY.
  • Net profit margins during the year declined from 14.9% in FY21 to 11.0% in FY22.

HEIDELBERG CEMENT Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 21,167 22,970 8.5%
Other income Rs m 465 491 5.6%
Total Revenues Rs m 21,631 23,460 8.5%
Gross profit Rs m 5,066 4,346 -14.2%
Depreciation Rs m 1,110 1,121 0.9%
Interest Rs m 509 364 -28.3%
Profit before tax Rs m 3,912 3,351 -14.3%
Tax Rs m 763 829 8.7%
Profit after tax Rs m 3,150 2,523 -19.9%
Gross profit margin % 23.9 18.9
Effective tax rate % 19.5 24.7
Net profit margin % 14.9 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

HEIDELBERG CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 8 billion as compared to Rs 9 billion in FY21, thereby witnessing an decrease of -8.9%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY21, a fall of 10.2%.
  • Current assets rose 19% and stood at Rs 12 billion, while fixed assets fell 11% and stood at Rs 16 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 28 billion as against Rs 28 billion during FY21, thereby witnessing a fall of 1%.

HEIDELBERG CEMENT Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 14,939 15,652 4.8
 
Current Liabilities Rs m 9,180 8,366 -8.9
Long-term Debt Rs m 1,745 1,566 -10.2
Total Liabilities Rs m 28,454 28,238 -0.8
 
Current assets Rs m 9,962 11,842 18.9
Fixed Assets Rs m 18,492 16,396 -11.3
Total Assets Rs m 28,454 28,238 -0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HEIDELBERG CEMENT Cash Flow Statement Analysis

  • HEIDELBERG CEMENT's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -350 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -613 million from the Rs -376 million net cash flows seen during FY21.

HEIDELBERG CEMENT Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 4,395 3,019 -31.3%
Cash Flow from Investing Activities Rs m -1,732 -350 -
Cash Flow from Financing Activities Rs m -3,039 -3,282 -
Net Cash Flow Rs m -376 -613 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HEIDELBERG CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an decline from the EPS of Rs 13.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 192.2, stands at 18.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 93.4 101.4
TTM Earnings per share Rs 13.9 11.1
Diluted earnings per share Rs 13.9 11.1
Price to Cash Flow x 12.4 14.4
TTM P/E ratio x 16.8 18.5
Price / Book Value ratio x 2.9 3.4
Market Cap Rs m 42,813 52,518
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HEIDELBERG CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.1x during FY21. 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 10.2x during FY22, from 8.7x during FY21. 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 declined and down at 16.1% during FY22, from 21.1% during FY22. 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 declined and down at 21.6% during FY22, from 26.5% during FY21. 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 declined and down at 10.2% during FY22, from 12.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.1 1.4
Debtors’ Days Days 6 6
Interest coverage x 8.7 10.2
Debt to equity ratio x 0.1 0.1
Return on assets % 12.9 10.2
Return on equity % 21.1 16.1
Return on capital employed % 26.5 21.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 253.9 to Rs 192.2, registering a loss of Rs 61.7 or around 24.3%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Annual Report FAQs

What is the current share price of HEIDELBERG CEMENT?

HEIDELBERG CEMENT currently trades at Rs 196.3 per share. You can check out the latest share price performance of HEIDELBERG CEMENT here...

What was the revenue of HEIDELBERG CEMENT in FY22? How does it compare to earlier years?

The revenues of HEIDELBERG CEMENT stood at Rs 23,460 m in FY22, which was up 8.5% compared to Rs 21,631 m reported in FY21.

HEIDELBERG CEMENT's revenue has grown from Rs 18,369 m in FY18 to Rs 23,460 m in FY22.

Over the past 5 years, the revenue of HEIDELBERG CEMENT has grown at a CAGR of 6.3%.

What was the net profit of HEIDELBERG CEMENT in FY22? How does it compare to earlier years?

The net profit of HEIDELBERG CEMENT stood at Rs 2,523 m in FY22, which was down -19.9% compared to Rs 3,150 m reported in FY21.

This compares to a net profit of Rs 2,681 m in FY20 and a net profit of Rs 2,207 m in FY19.

Over the past 5 years, HEIDELBERG CEMENT net profit has grown at a CAGR of 17.3%.

What does the cash flow statement of HEIDELBERG 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 HEIDELBERG CEMENT reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 3,019 m as compared to Rs 4,395 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -350 m as compared to Rs -1,732 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -3,282 m as compared to Rs -3,039 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations3,7713,9314,5874,3953,019
From Investments-137-263-141-1,732-350
From Financial Activity-1,655-2,419-3,138-3,039-3,282
Net Cashflow1,9801,2491,308-376-613

What does the Key Ratio analysis of HEIDELBERG 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 HEIDELBERG CEMENT reveals:

  • Operating profit margins witnessed a fall and stood at 18.9% in FY22 as against 23.9% in FY21.
  • Net profit margins declined from 14.9% in FY21 to 11.0% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.1 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)20.022.724.323.918.9
Net Profit Margin (%)7.310.312.414.911.0
Debt to Equity Ratio (x)0.40.30.20.10.1

Read: Latest Annual Report Analysis of HEIDELBERG CEMENT

 

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