SHREE CEMENT 2022-23 Annual Report Analysis

Tue, 4 Jul

SHREE CEMENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SHREE CEMENT Income Statement Analysis

• Operating income during the year rose 19.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY23 as against 19.7% in FY22.
• Depreciation charges increased by 44.9% and finance costs increased by 21.6% YoY, respectively.
• Other income declined by 15.2% YoY.
• Net profit for the year declined by 45.7% YoY.
• Net profit margins during the year declined from 12.5% in FY22 to 5.7% in FY23.

SHREE CEMENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	187,639	223,965	19.4%
Other income	Rs m	5,485	4,653	-15.2%
Total Revenues	Rs m	193,124	228,619	18.4%
Gross profit	Rs m	37,053	29,533	-20.3%
Depreciation	Rs m	11,459	16,607	44.9%
Interest	Rs m	2,161	2,629	21.6%
Profit before tax	Rs m	28,918	14,950	-48.3%
Tax	Rs m	5,552	2,259	-59.3%
Profit after tax	Rs m	23,366	12,691	-45.7%
Gross profit margin	%	19.7	13.2
Effective tax rate	%	19.2	15.1
Net profit margin	%	12.5	5.7

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SHREE CEMENT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 67 billion as compared to Rs 47 billion in FY22, thereby witnessing an increase of 43.7%.
• Long-term debt down at Rs 6 billion as compared to Rs 13 billion during FY22, a fall of 55.3%.
• Current assets rose 6% and stood at Rs 90 billion, while fixed assets rose 14% and stood at Rs 167 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 257 billion as against Rs 231 billion during FY22, thereby witnessing a growth of 11%.

SHREE CEMENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	174,603	186,364	6.7
Current Liabilities	Rs m	46,864	67,321	43.7
Long-term Debt	Rs m	12,983	5,809	-55.3
Total Liabilities	Rs m	230,745	256,517	11.2
Current assets	Rs m	84,703	89,679	5.9
Fixed Assets	Rs m	146,042	166,837	14.2
Total Assets	Rs m	230,745	256,517	11.2

SHREE CEMENT Cash Flow Statement Analysis

• SHREE CEMENT's cash flow from operating activities (CFO) during FY23 stood at Rs 26 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -24 billion, an improvement of 12.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs -3 billion net cash flows seen during FY22.

SHREE CEMENT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	26,680	25,687	-3.7%
Cash Flow from Investing Activities	Rs m	-21,514	-24,145	-
Cash Flow from Financing Activities	Rs m	-8,494	-2,767	-
Net Cash Flow	Rs m	-3,243	-1,134	-

Current Valuations for SHREE CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 351.8, an decline from the EPS of Rs 647.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24,105.9, stands at 68.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 27.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	5,200.6	6,207.5
TTM Earnings per share	Rs	647.6	351.8
Diluted earnings per share	Rs	647.6	351.8
Price to Cash Flow	x	24.9	27.7
TTM P/E ratio	x	37.0	68.5
Price / Book Value ratio	x	5.6	4.3
Market Cap	Rs m	969,083	810,246
Dividends per share (Unadj.)	Rs	90.0	100.0

Ratio Analysis for SHREE CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.8x during FY22. 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 6.7x during FY23, from 14.4x during FY22. 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 6.8% during FY23, from 13.4% during FY23. 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 9.1% during FY23, from 16.6% during FY22. 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 6.0% during FY23, from 11.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	1.3
Debtors’ Days	Days	2	2
Interest coverage	x	14.4	6.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.1	6.0
Return on equity	%	13.4	6.8
Return on capital employed	%	16.6	9.1

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 19,268.9 to Rs 24,105.9, registering a gain of Rs 4,837.0 or around 25.1%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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