SAGAR CEMENTS 2020-21 Annual Report Analysis

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SAGAR CEMENTS 2020-21 Annual Report Analysis
Fri, 29 Oct

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 2.2% in FY20 to 13.4% 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 % 2.2 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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



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 281.5, stands at 19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.4 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 2.3 15.8
Price to Cash Flow x 5.9 12.4
TTM P/E ratio x 3.7 19.4
Price / Book Value ratio x 1.1 1.1
Market Cap Rs m 6,270 33,076
Dividends per share (Unadj.) Rs 0.5 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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 147.2 to Rs 281.5, registering a gain of Rs 134.3 or around 91.2%.

Overall, the S&P BSE SENSEX is up 46.4% over the year.

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

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