SHREE CEMENT 2020-21 Annual Report Analysis

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SHREE CEMENT 2020-21 Annual Report Analysis
Mon, 26 Jul

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 11.7% in FY20 to 16.4% 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 % 11.7 16.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Revealing this Monday: A Potentially Life-Changing Opportunity

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 27,938.9, stands at 44.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 6.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.4 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 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 30.1 28.4
TTM P/E ratio x 44.0 44.0
Price / Book Value ratio x 5.7 5.3
Market Cap Rs m 1,008,055 1,008,055
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 21,341.6 to Rs 27,938.9, registering a gain of Rs 6,597.4 or around 30.9%.

Overall, the S&P BSE SENSEX is up 39.6% over the year.

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

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For the quarter ended March 2021, SHREE CEMENT has posted a net profit of Rs 8 bn (up 49.0% YoY). Sales on the other hand came in at Rs 42 bn (up 23.1% YoY). Read on for a complete analysis of SHREE CEMENT's quarterly results.

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