SAURASHTRA CEMENT 2022-23 Annual Report Analysis

Wed, 7 Feb

SAURASHTRA CEMENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SAURASHTRA CEMENT Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 90.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.4% in FY23 as against 4.4% in FY22.
• Depreciation charges increased by 17.2% and finance costs increased by 0.7% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.6% in FY22 to 1.3% in FY23.

SAURASHTRA CEMENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,509	16,453	13.4%
Other income	Rs m	161	131	-18.5%
Total Revenues	Rs m	14,669	16,584	13.0%
Gross profit	Rs m	638	60	-90.7%
Depreciation	Rs m	332	389	17.2%
Interest	Rs m	92	93	0.7%
Profit before tax	Rs m	375	-291	NA
Tax	Rs m	144	-71	NA
Profit after tax	Rs m	231	-220	NA
Gross profit margin	%	4.4	0.4
Effective tax rate	%	38.3	24.5
Net profit margin	%	1.6	-1.3

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SAURASHTRA CEMENT Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -0.9%.
• Long-term debt down at Rs 54 million as compared to Rs 109 million during FY22, a fall of 50.3%.
• Current assets fell 26% and stood at Rs 4 billion, while fixed assets rose 8% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 14 billion during FY22, thereby witnessing a fall of 3%.

SAURASHTRA CEMENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,457	8,245	-2.5
Current Liabilities	Rs m	3,790	3,756	-0.9
Long-term Debt	Rs m	109	54	-50.3
Total Liabilities	Rs m	14,025	13,575	-3.2
Current assets	Rs m	4,717	3,507	-25.7
Fixed Assets	Rs m	9,309	10,069	8.2
Total Assets	Rs m	14,025	13,575	-3.2

SAURASHTRA CEMENT Cash Flow Statement Analysis

• SAURASHTRA CEMENT's cash flow from operating activities (CFO) during FY23 stood at Rs 215 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 325 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -491 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 48 million from the Rs -69 million net cash flows seen during FY22.

SAURASHTRA CEMENT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-82	215	-
Cash Flow from Investing Activities	Rs m	-299	325	-
Cash Flow from Financing Activities	Rs m	311	-491	-
Net Cash Flow	Rs m	-69	48	-

Current Valuations for SAURASHTRA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.9, an decline from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 49.7, stands at -21.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	256.1	290.1
TTM Earnings per share	Rs	4.1	-3.9
Diluted earnings per share	Rs	2.1	-2.0
Price to Cash Flow	x	12.3	20.9
TTM P/E ratio	x	96.6	-21.8
Price / Book Value ratio	x	0.7	0.4
Market Cap	Rs m	5,607	3,525
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SAURASHTRA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.2x during FY22. 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 deteriorated and stood at -2.1x during FY23, from 5.1x during FY22. 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 -2.7% during FY23, from 2.7% during FY23. 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 -2.4% during FY23, from 5.5% during FY22. 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 -0.9% during FY23, from 2.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	0.9
Debtors’ Days	Days	150	174
Interest coverage	x	5.1	-2.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.3	-0.9
Return on equity	%	2.7	-2.7
Return on capital employed	%	5.5	-2.4

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 down from Rs 62.6 to Rs 49.7, registering a loss of Rs 12.9 or around 20.6%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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