SAGAR CEMENTS 2022-23 Annual Report Analysis

Wed, 7 Jun

SAGAR CEMENTS 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.

SAGAR CEMENTS Income Statement Analysis

• Operating income during the year rose 39.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY23 as against 17.3% in FY22.
• Depreciation charges increased by 68.0% and finance costs increased by 118.0% YoY, respectively.
• Other income grew by 1559.5% YoY.
• Net profit for the year declined by 85.6% YoY.
• Net profit margins during the year declined from 3.7% in FY22 to 0.4% in FY23.

SAGAR CEMENTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,969	22,295	39.6%
Other income	Rs m	134	2,227	1,559.5%
Total Revenues	Rs m	16,103	24,522	52.3%
Gross profit	Rs m	2,758	1,532	-44.5%
Depreciation	Rs m	927	1,558	68.0%
Interest	Rs m	925	2,016	118.0%
Profit before tax	Rs m	1,040	185	-82.2%
Tax	Rs m	449	100	-77.8%
Profit after tax	Rs m	592	85	-85.6%
Gross profit margin	%	17.3	6.9
Effective tax rate	%	43.1	54.0
Net profit margin	%	3.7	0.4

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SAGAR CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 0.9%.
• Long-term debt stood at Rs 12 billion as compared to Rs 11 billion during FY22, a growth of 2.1%.
• Current assets rose 3% and stood at Rs 8 billion, while fixed assets rose 13% and stood at Rs 30 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 38 billion as against Rs 34 billion during FY22, thereby witnessing a growth of 11%.

SAGAR CEMENTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,554	16,375	30.4
Current Liabilities	Rs m	7,746	7,816	0.9
Long-term Debt	Rs m	11,285	11,520	2.1
Total Liabilities	Rs m	34,247	37,859	10.5
Current assets	Rs m	7,424	7,651	3.1
Fixed Assets	Rs m	26,823	30,208	12.6
Total Assets	Rs m	34,247	37,859	10.5

SAGAR CEMENTS Cash Flow Statement Analysis

• SAGAR CEMENTS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 101.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 319 million from the Rs -821 million net cash flows seen during FY22.

SAGAR CEMENTS 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	870	1,752	101.4%
Cash Flow from Investing Activities	Rs m	-7,839	1,700	-
Cash Flow from Financing Activities	Rs m	6,149	-3,666	-
Net Cash Flow	Rs m	-821	319	-

Current Valuations for SAGAR CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an decline from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 215.9, stands at 331.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.1 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	135.9	170.6
TTM Earnings per share	Rs	5.0	0.7
Diluted earnings per share	Rs	4.5	0.7
Price to Cash Flow	x	21.3	17.1
TTM P/E ratio	x	53.8	331.9
Price / Book Value ratio	x	8.4	1.7
Market Cap	Rs m	105,603	28,040
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for SAGAR CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 1.0x 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 1.1x during FY23, from 2.1x 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 0.5% during FY23, from 4.7% 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 7.9% during FY23, from 8.2% 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 improved and stood at 5.6% during FY23, from 4.4% 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	1.0	1.0
Debtors’ Days	Days	275	218
Interest coverage	x	2.1	1.1
Debt to equity ratio	x	0.9	0.7
Return on assets	%	4.4	5.6
Return on equity	%	4.7	0.5
Return on capital employed	%	8.2	7.9

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 208.5 to Rs 215.9, registering a gain of Rs 7.4 or around 3.5%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

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