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



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

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



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



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



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

Annual Report FAQs

What is the current share price of SHREE CEMENT?

SHREE CEMENT currently trades at Rs 21,185.1 per share. You can check out the latest share price performance of SHREE CEMENT here...

What was the revenue of SHREE CEMENT in FY21? How does it compare to earlier years?

The revenues of SHREE CEMENT stood at Rs 139,427 m in FY21, which was up 6.1% compared to Rs 131,428 m reported in FY20.

SHREE CEMENT's revenue has grown from Rs 79,308 m in FY17 to Rs 139,427 m in FY21.

Over the past 5 years, the revenue of SHREE CEMENT has grown at a CAGR of 15.1%.

What was the net profit of SHREE CEMENT in FY21? How does it compare to earlier years?

The net profit of SHREE CEMENT stood at Rs 22,896 m in FY21, which was up 48.3% compared to Rs 15,441 m reported in FY20.

This compares to a net profit of Rs 10,151 m in FY19 and a net profit of Rs 13,842 m in FY18.

Over the past 5 years, SHREE CEMENT net profit has grown at a CAGR of 14.4%.

What does the cash flow statement of SHREE CEMENT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SHREE CEMENT reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 42,538 m as compared to Rs 39,732 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -26,450 m as compared to Rs -55,987 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -12,326 m as compared to Rs 15,811 m in FY20.

Here's the cash flow statement of SHREE CEMENT for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations22,01618,78720,80039,73242,538
From Investments-20,478-35,947-7,215-55,987-26,450
From Financial Activity-1,66917,262-12,76015,811-12,326
Net Cashflow-131102842-3603,703

What does the Key Ratio analysis of SHREE CEMENT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SHREE CEMENT reveals:

  • Operating profit margins witnessed a fall and down at 30.1% in FY21 as against 29.2% in FY20.
  • Net profit margins grew from 12.0% in FY20 to 17.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of SHREE CEMENT for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)31.926.020.829.230.1
Net Profit Margin (%)18.014.68.112.017.0
Debt to Equity Ratio (x)0.10.20.20.10.1

Read: Latest Annual Report Analysis of SHREE CEMENT

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