SAGAR CEMENTS 2020-21 Annual Report Analysis

Wed, 31 Mar

SAGAR CEMENTS 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.

SAGAR CEMENTS Income Statement Analysis

• Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 115.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.9% in FY21 as against 15.7% in FY20.
• Depreciation charges increased by 2.1% and finance costs decreased by 23.7% YoY, respectively.
• Other income grew by 130.8% YoY.
• Net profit for the year grew by 599.6% YoY.
• Net profit margins during the year grew from 2.3% in FY20 to 13.5% in FY21.

SAGAR CEMENTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	11,752	13,713	16.7%
Other income	Rs m	50	116	130.8%
Total Revenues	Rs m	11,802	13,830	17.2%
Gross profit	Rs m	1,845	3,966	115.0%
Depreciation	Rs m	789	806	2.1%
Interest	Rs m	610	466	-23.7%
Profit before tax	Rs m	497	2,811	466.0%
Tax	Rs m	231	955	312.7%
Profit after tax	Rs m	265	1,856	599.6%
Gross profit margin	%	15.7	28.9
Effective tax rate	%	46.6	34.0
Net profit margin	%	2.3	13.5

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SAGAR CEMENTS 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 2.8%.
• Long-term debt stood at Rs 6 billion as compared to Rs 3 billion during FY20, a growth of 122.1%.
• Current assets rose 87% and stood at Rs 6 billion, while fixed assets rose 23% and stood at Rs 20 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 34%.

SAGAR CEMENTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,443	12,045	27.6
Current Liabilities	Rs m	5,023	5,162	2.8
Long-term Debt	Rs m	2,872	6,380	122.1
Total Liabilities	Rs m	19,176	25,685	33.9
Current assets	Rs m	3,172	5,936	87.1
Fixed Assets	Rs m	16,003	19,749	23.4
Total Assets	Rs m	19,176	25,685	33.9

SAGAR CEMENTS Cash Flow Statement Analysis

• SAGAR CEMENTS's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 86.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 110.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion, an improvement of 3,143% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs -150 million net cash flows seen during FY20.

SAGAR CEMENTS 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	2,021	3,772	86.7%
Cash Flow from Investing Activities	Rs m	-2,270	-4,766	-
Cash Flow from Financing Activities	Rs m	99	3,217	3,142.5%
Net Cash Flow	Rs m	-150	2,222	-

Current Valuations for SAGAR CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 79.0, an improvement from the EPS of Rs 11.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 714.2, stands at 50.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	527.4	583.5
TTM Earnings per share	Rs	11.9	79.0
Diluted earnings per share	Rs	2.0	14.2
Price to Cash Flow	x	37.9	4.8
TTM P/E ratio	x	150.6	50.8
Price / Book Value ratio	x	1.1	1.1
Market Cap	Rs m	10,759	12,830
Dividends per share (Unadj.)	Rs	0.5	1.3

Ratio Analysis for SAGAR CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 0.6x 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 7.0x during FY21, from 1.8x 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 15.4% during FY21, from 2.8% 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 17.8% during FY21, from 9.0% 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 9.0% during FY21, from 4.6% 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	0.6	1.1
Debtors’ Days	Days	425	268
Interest coverage	x	1.8	7.0
Debt to equity ratio	x	0.3	0.5
Return on assets	%	4.6	9.0
Return on equity	%	2.8	15.4
Return on capital employed	%	9.0	17.8

To see how SAGAR CEMENTS has performed over the last 5 years, please visit here.

SAGAR CEMENTS Share Price Performance

Over the last one year, SAGAR CEMENTS share price has moved up from Rs 305.7 to Rs 714.2, registering a gain of Rs 408.5 or around 133.6%.

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

(To know more, check out historical annual results for SAGAR CEMENTS and quarterly results for SAGAR CEMENTS)

Read: Latest Annual Report Analysis of SAGAR CEMENTS