SHREE CEMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

SHREE CEMENT 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.

SHREE CEMENT Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.1% in FY21 as against 29.2% in FY20.
• Depreciation charges decreased by 30.2% and finance costs decreased by 13.8% YoY, respectively.
• Other income grew by 69.9% YoY.
• Net profit for the year grew by 48.3% YoY.
• Net profit margins during the year grew from 12.0% in FY20 to 17.0% in FY21.

SHREE CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	128,684	134,763	4.7%
Other income	Rs m	2,744	4,663	69.9%
Total Revenues	Rs m	131,428	139,427	6.1%
Gross profit	Rs m	37,591	40,514	7.8%
Depreciation	Rs m	18,078	12,623	-30.2%
Interest	Rs m	2,914	2,513	-13.8%
Profit before tax	Rs m	19,343	30,041	55.3%
Tax	Rs m	3,902	7,145	83.1%
Profit after tax	Rs m	15,441	22,896	48.3%
Gross profit margin	%	29.2	30.1
Effective tax rate	%	20.2	23.8
Net profit margin	%	12.0	17.0

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SHREE CEMENT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 37 billion as compared to Rs 40 billion in FY20, thereby witnessing an decrease of -7.8%.
• Long-term debt down at Rs 13 billion as compared to Rs 16 billion during FY20, a fall of 18.7%.
• Current assets rose 4% and stood at Rs 82 billion, while fixed assets rose 11% and stood at Rs 125 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 207 billion as against Rs 192 billion during FY20, thereby witnessing a growth of 8%.

SHREE CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	131,694	153,974	16.9
Current Liabilities	Rs m	40,156	37,008	-7.8
Long-term Debt	Rs m	16,387	13,316	-18.7
Total Liabilities	Rs m	192,004	207,271	8.0
Current assets	Rs m	78,938	81,873	3.7
Fixed Assets	Rs m	113,066	125,398	10.9
Total Assets	Rs m	192,004	207,271	8.0

SHREE CEMENT Cash Flow Statement Analysis

• SHREE CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 43 billion, an improvement of 7.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -26 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -12 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs -360 million net cash flows seen during FY20.

SHREE CEMENT 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	39,732	42,538	7.1%
Cash Flow from Investing Activities	Rs m	-55,987	-26,450	-
Cash Flow from Financing Activities	Rs m	15,811	-12,326	-
Net Cash Flow	Rs m	-360	3,703	-

Current Valuations for SHREE CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 634.6, an improvement from the EPS of Rs 428.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 29,475.4, stands at 46.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 7.9 times.
• The company's price to cash flow (P/CF) ratio stood at 22.9 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	3,566.6	3,735.1
TTM Earnings per share	Rs	428.0	634.6
Diluted earnings per share	Rs	427.9	634.6
Price to Cash Flow	x	18.9	22.9
TTM P/E ratio	x	41.1	46.4
Price / Book Value ratio	x	5.7	5.3
Market Cap	Rs m	747,683	814,893
Dividends per share (Unadj.)	Rs	110.0	60.0

Ratio Analysis for SHREE CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY21, from 2.0x 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 13.0x during FY21, from 7.6x 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 14.9% during FY21, from 11.7% 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 19.5% during FY21, from 15.0% 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 12.3% during FY21, from 9.6% 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	2.0	2.2
Debtors’ Days	Days	3	2
Interest coverage	x	7.6	13.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.6	12.3
Return on equity	%	11.7	14.9
Return on capital employed	%	15.0	19.5

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 17,575.0 to Rs 29,475.4, registering a gain of Rs 11,900.5 or around 67.7%.

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

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

Read: Latest Annual Report Analysis of SHREE CEMENT