SAURASHTRA CEMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

SAURASHTRA 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.

SAURASHTRA CEMENT Income Statement Analysis

• Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.0% in FY21 as against 15.3% in FY20.
• Depreciation charges increased by 1.8% and finance costs decreased by 6.5% YoY, respectively.
• Other income grew by 46.3% YoY.
• Net profit for the year grew by 27.9% YoY.
• Net profit margins during the year grew from 9.3% in FY20 to 10.7% in FY21.

SAURASHTRA CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,082	6,737	10.8%
Other income	Rs m	84	123	46.3%
Total Revenues	Rs m	6,166	6,860	11.3%
Gross profit	Rs m	933	1,146	22.8%
Depreciation	Rs m	197	200	1.8%
Interest	Rs m	47	44	-6.5%
Profit before tax	Rs m	773	1,025	32.5%
Tax	Rs m	208	302	44.9%
Profit after tax	Rs m	565	723	27.9%
Gross profit margin	%	15.3	17.0
Effective tax rate	%	26.9	29.5
Net profit margin	%	9.3	10.7

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

SAURASHTRA CEMENT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -1.3%.
• Long-term debt down at Rs 46 million as compared to Rs 62 million during FY20, a fall of 25.5%.
• Current assets rose 24% and stood at Rs 3 billion, while fixed assets rose 2% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 10%.

SAURASHTRA CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,424	5,156	16.5
Current Liabilities	Rs m	1,871	1,847	-1.3
Long-term Debt	Rs m	62	46	-25.5
Total Liabilities	Rs m	6,773	7,424	9.6
Current assets	Rs m	2,451	3,034	23.8
Fixed Assets	Rs m	4,322	4,390	1.6
Total Assets	Rs m	6,773	7,424	9.6

SAURASHTRA CEMENT Cash Flow Statement Analysis

• SAURASHTRA CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 113.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 215.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -172 million, an improvement of 27% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -43 million from the Rs 8 million net cash flows seen during FY20.

SAURASHTRA 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	626	1,339	113.9%
Cash Flow from Investing Activities	Rs m	-384	-1,209	-
Cash Flow from Financing Activities	Rs m	-234	-172	-
Net Cash Flow	Rs m	8	-43	-

Current Valuations for SAURASHTRA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.4, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 63.4, stands at 6.2 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.6 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	87.5	96.5
TTM Earnings per share	Rs	8.1	10.4
Diluted earnings per share	Rs	8.0	10.3
Price to Cash Flow	x	2.6	3.6
TTM P/E ratio	x	3.5	6.2
Price / Book Value ratio	x	0.6	0.6
Market Cap	Rs m	2,793	3,290
Dividends per share (Unadj.)	Rs	1.8	1.8

Ratio Analysis for SAURASHTRA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.3x 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 24.4x during FY21, from 17.5x 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 14.0% during FY21, from 12.8% 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 20.5% during FY21, from 18.3% 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 10.3% during FY21, from 9.0% 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	1.3	1.6
Debtors’ Days	Days	206	157
Interest coverage	x	17.5	24.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	10.3
Return on equity	%	12.8	14.0
Return on capital employed	%	18.3	20.5

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

SAURASHTRA CEMENT Share Price Performance

Over the last one year, SAURASHTRA CEMENT share price has moved up from Rs 28.1 to Rs 63.4, registering a gain of Rs 35.3 or around 125.4%.

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

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

Read: Latest Annual Report Analysis of SAURASHTRA CEMENT