SHREE CEMENT 2021-22 Annual Report Analysis

Fri, 8 Jul

SHREE CEMENT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SHREE CEMENT Income Statement Analysis

• Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.9% in FY22 as against 40.4% in FY21.
• Depreciation charges decreased by 9.2% and finance costs decreased by 14.0% YoY, respectively.
• Other income grew by 25.2% YoY.
• Net profit for the year grew by 2.1% YoY.
• Net profit margins during the year declined from 22.7% in FY21 to 20.8% in FY22.

SHREE CEMENT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	100,853	112,552	11.6%
Other income	Rs m	4,383	5,485	25.2%
Total Revenues	Rs m	105,236	118,037	12.2%
Gross profit	Rs m	40,795	37,053	-9.2%
Depreciation	Rs m	12,623	11,459	-9.2%
Interest	Rs m	2,513	2,161	-14.0%
Profit before tax	Rs m	30,041	28,918	-3.7%
Tax	Rs m	7,145	5,552	-22.3%
Profit after tax	Rs m	22,896	23,366	2.1%
Gross profit margin	%	40.4	32.9
Effective tax rate	%	23.8	19.2
Net profit margin	%	22.7	20.8

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SHREE CEMENT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 47 billion as compared to Rs 44 billion in FY21, thereby witnessing an increase of 5.5%.
• Long-term debt down at Rs 13 billion as compared to Rs 13 billion during FY21, a fall of 2.5%.
• Current assets rose 3% and stood at Rs 85 billion, while fixed assets rose 16% and stood at Rs 146 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 231 billion as against Rs 207 billion during FY21, thereby witnessing a growth of 11%.

SHREE CEMENT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	153,974	174,603	13.4
Current Liabilities	Rs m	44,431	46,864	5.5
Long-term Debt	Rs m	13,316	12,983	-2.5
Total Liabilities	Rs m	207,271	230,745	11.3
Current assets	Rs m	81,873	84,703	3.5
Fixed Assets	Rs m	125,398	146,042	16.5
Total Assets	Rs m	207,271	230,745	11.3

SHREE CEMENT Cash Flow Statement Analysis

• SHREE CEMENT's cash flow from operating activities (CFO) during FY22 stood at Rs 27 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -22 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -8 billion, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 billion from the Rs 4 billion net cash flows seen during FY21.

SHREE CEMENT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	42,538	26,680	-37.3%
Cash Flow from Investing Activities	Rs m	-26,450	-21,514	-
Cash Flow from Financing Activities	Rs m	-12,326	-8,494	-
Net Cash Flow	Rs m	3,703	-3,243	-

Current Valuations for SHREE CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 647.6, an improvement from the EPS of Rs 634.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19,861.0, stands at 30.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 27.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2,795.3	3,119.5
TTM Earnings per share	Rs	634.6	647.6
Diluted earnings per share	Rs	634.6	647.6
Price to Cash Flow	x	29.9	27.8
TTM P/E ratio	x	46.4	30.7
Price / Book Value ratio	x	5.3	5.6
Market Cap	Rs m	814,893	969,083
Dividends per share (Unadj.)	Rs	60.0	90.0

Ratio Analysis for SHREE CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY22, from 1.8x during FY21. 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 14.4x during FY22, from 13.0x during FY21. 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 13.4% during FY22, from 14.9% during FY22. 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 16.6% during FY22, from 19.5% during FY21. 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 11.1% during FY22, from 12.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.8	1.8
Debtors’ Days	Days	2	3
Interest coverage	x	13.0	14.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.3	11.1
Return on equity	%	14.9	13.4
Return on capital employed	%	19.5	16.6

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 down from Rs 27,577.2 to Rs 19,861.0, registering a loss of Rs 7,716.2 or around 28.0%.

Overall, the S&P BSE SENSEX is up 3.1% 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