SHREE CEMENT 2018-19 Annual Report Analysis

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SHREE CEMENT 2018-19 Annual Report Analysis
Fri, 19 Jul

SHREE CEMENT has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

SHREE CEMENT Income Statement Analysis

  • Operating income during the year rose 27.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.8% in FY19 as against 25.1% in FY18.
  • Depreciation charges increased by 63.6% and finance costs increased by 83.2% YoY, respectively.
  • Other income declined by 35.8% YoY.
  • Net profit for the year declined by 26.7% YoY.
  • Net profit margins during the year declined from 13.5% in FY18 to 7.9% in FY19.

SHREE CEMENT Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 98,331 125,547 27.7%
Other income Rs m 3,891 2,498 -35.8%
Total Revenues Rs m 102,222 128,044 25.3%
Gross profit Rs m 24,728 26,156 5.8%
Depreciation Rs m 8,994 14,718 63.6%
Interest Rs m 1,353 2,479 83.2%
Profit before tax Rs m 18,272 11,456 -37.3%
Tax Rs m 4,430 1,306 -70.5%
Profit after tax Rs m 13,842 10,151 -26.7%
Gross profit margin % 25.1 20.8
Effective tax rate % 24.2 11.4
Net profit margin % 13.5 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHREE CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 21 billion as compared to Rs 30 billion in FY18, thereby witnessing an decrease of -28.3%.
  • Long-term debt stood at Rs 23 billion as compared to Rs 22 billion during FY18, a growth of 4.6%.
  • Current assets fell 17% and stood at Rs 47 billion, while fixed assets rose 46% and stood at Rs 73 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 155 billion as against Rs 151 billion during FY18, thereby witnessing a growth of 2%.

SHREE CEMENT Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 88,967 96,708 8.7
 
Current Liabilities Rs m 29,671 21,266 -28.3
Long-term Debt Rs m 22,081 23,094 4.6
Total Liabilities Rs m 151,417 154,931 2.3
 
Current assets Rs m 57,003 47,192 -17.2
Fixed Assets Rs m 50,163 73,111 45.7
Total Assets Rs m 151,417 154,931 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SHREE CEMENT Cash Flow Statement Analysis

  • SHREE CEMENT's cash flow from operating activities (CFO) during FY19 stood at Rs 21 billion, an improvement of 10.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -13 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 842 million from the Rs 102 million net cash flows seen during FY18.

SHREE CEMENT Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 18,788 20,800 10.7%
Cash Flow from Investing Activities Rs m -35,947 -7,215 -
Cash Flow from Financing Activities Rs m 17,262 -12,760 -
Net Cash Flow Rs m 102 842 722.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for SHREE CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 291.3, an decline from the EPS of Rs 397.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 21,233.4, stands at 77.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 4.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 29.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 2,822.4 3,603.5
TTM Earnings per share Rs 397.3 291.3
Diluted earnings per share Rs 397.3 291.3
Price to Cash Flow x 32.4 29.7
TTM P/E ratio x 77.8 77.8
Price / Book Value ratio x 7.1 5.8
Market Cap Rs m 739,770 739,770
Dividends per share (Unadj.) Rs 50.0 60.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SHREE CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY19, from 1.9x during FY18. 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 5.6x during FY19, from 14.5x during FY18. 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 10.5% during FY19, from 15.6% during FY19. 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 11.6% during FY19, from 17.7% during FY18. 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 8.2% during FY19, from 10.0% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.9 2.2
Debtors’ Days Days 17 30
Interest coverage x 14.5 5.6
Debt to equity ratio x 0.2 0.2
Return on assets % 10.0 8.2
Return on equity % 15.6 10.5
Return on capital employed % 17.7 11.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how SHREE CEMENT has performed over the last 5 years, please visit here.

SHREE CEMENT Share Price Performance

Over the last one year, SHREE CEMENT share price has moved up from Rs 16,196.1 to Rs 21,233.4, registering a gain of Rs 5,037.3 or around 31.1%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

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

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1 Responses to "SHREE CEMENT 2018-19 Annual Report Analysis"

Arvind Mangal

Apr 20, 2020

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Related Views on News

SHREE CEMENT Announces Quarterly Results (3QFY21); Net Profit Up 102.0% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, SHREE CEMENT has posted a net profit of Rs 6 bn (up 102.0% YoY). Sales on the other hand came in at Rs 33 bn (up 16.2% YoY). Read on for a complete analysis of SHREE CEMENT's quarterly results.

SHREE CEMENT Announces Quarterly Results (2QFY21); Net Profit Up 77.1% (Quarterly Result Update)

Nov 26, 2020 | Updated on Nov 26, 2020

For the quarter ended September 2020, SHREE CEMENT has posted a net profit of Rs 5 bn (up 77.1% YoY). Sales on the other hand came in at Rs 30 bn (up 7.9% YoY). Read on for a complete analysis of SHREE CEMENT's quarterly results.

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