ORIENT CEMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

ORIENT 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.

ORIENT CEMENT Income Statement Analysis

• Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.7% in FY21 as against 15.8% in FY20.
• Depreciation charges increased by 0.7% and finance costs decreased by 23.5% YoY, respectively.
• Other income grew by 3.5% YoY.
• Net profit for the year grew by 147.4% YoY.
• Net profit margins during the year grew from 3.6% in FY20 to 9.2% in FY21.

ORIENT CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	24,218	23,241	-4.0%
Other income	Rs m	177	183	3.5%
Total Revenues	Rs m	24,395	23,424	-4.0%
Gross profit	Rs m	3,829	5,507	43.8%
Depreciation	Rs m	1,409	1,419	0.7%
Interest	Rs m	1,223	936	-23.5%
Profit before tax	Rs m	1,374	3,336	142.8%
Tax	Rs m	508	1,194	135.0%
Profit after tax	Rs m	866	2,142	147.4%
Gross profit margin	%	15.8	23.7
Effective tax rate	%	37.0	35.8
Net profit margin	%	3.6	9.2

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ORIENT CEMENT Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 0.3%.
• Long-term debt down at Rs 8 billion as compared to Rs 11 billion during FY20, a fall of 31.0%.
• Current assets rose 0% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 23 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 28 billion as against Rs 29 billion during FY20, thereby witnessing a fall of 3%.

ORIENT CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,067	12,942	16.9
Current Liabilities	Rs m	4,828	4,841	0.3
Long-term Debt	Rs m	11,354	7,838	-31.0
Total Liabilities	Rs m	28,998	28,121	-3.0
Current assets	Rs m	4,847	4,854	0.1
Fixed Assets	Rs m	24,151	23,266	-3.7
Total Assets	Rs m	28,998	28,121	-3.0

ORIENT CEMENT Cash Flow Statement Analysis

• ORIENT CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 144.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 120.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 million from the Rs 127 million net cash flows seen during FY20.

ORIENT 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	2,918	7,141	144.7%
Cash Flow from Investing Activities	Rs m	-732	-1,615	-
Cash Flow from Financing Activities	Rs m	-2,059	-5,521	-
Net Cash Flow	Rs m	127	4	-97.0%

Current Valuations for ORIENT CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.5, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 98.0, stands at 9.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	118.2	113.4
TTM Earnings per share	Rs	4.2	10.5
Diluted earnings per share	Rs	4.2	10.5
Price to Cash Flow	x	4.0	4.3
TTM P/E ratio	x	10.6	9.4
Price / Book Value ratio	x	1.5	1.2
Market Cap	Rs m	16,477	15,268
Dividends per share (Unadj.)	Rs	0.8	2.0

Ratio Analysis for ORIENT CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 4.6x during FY21, from 2.1x 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 16.5% during FY21, from 7.8% 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 20.6% during FY21, from 11.6% 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 10.9% during FY21, from 7.2% 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	1.0
Debtors’ Days	Days	244	173
Interest coverage	x	2.1	4.6
Debt to equity ratio	x	1.0	0.6
Return on assets	%	7.2	10.9
Return on equity	%	7.8	16.5
Return on capital employed	%	11.6	20.6

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

ORIENT CEMENT Share Price Performance

Over the last one year, ORIENT CEMENT share price has moved up from Rs 44.7 to Rs 98.0, registering a gain of Rs 53.4 or around 119.5%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of ORIENT CEMENT