SAURASHTRA CEMENT 2020-21 Annual Report Analysis

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SAURASHTRA CEMENT 2020-21 Annual Report Analysis
Wed, 3 Nov

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 9.2% in FY20 to 10.5% 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 % 9.2 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 74.0, stands at 8.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.6 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 8.1 10.3
Price to Cash Flow x 6.8 5.6
TTM P/E ratio x 8.9 8.9
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 5,144 5,186
Dividends per share (Unadj.) Rs 1.8 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 43.8 to Rs 74.0, registering a gain of Rs 30.3 or around 69.1%.

Overall, the S&P BSE SENSEX is up 50.3% over the year.

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

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