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STAR CEMENT 2020-21 Annual Report Analysis
Wed, 31 Mar

STAR 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.

STAR CEMENT Income Statement Analysis

  • Operating income during the year fell 6.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 32.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY21 as against 21.4% in FY20.
  • Depreciation charges decreased by 3.2% and finance costs decreased by 25.1% YoY, respectively.
  • Other income declined by 4.6% YoY.
  • Net profit for the year declined by 34.9% YoY.
  • Net profit margins during the year declined from 15.6% in FY20 to 10.9% in FY21.

STAR CEMENT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 18,431 17,199 -6.7%
Other income Rs m 296 282 -4.6%
Total Revenues Rs m 18,727 17,482 -6.7%
Gross profit Rs m 3,942 2,680 -32.0%
Depreciation Rs m 930 900 -3.2%
Interest Rs m 93 70 -25.1%
Profit before tax Rs m 3,215 1,993 -38.0%
Tax Rs m 342 121 -64.5%
Profit after tax Rs m 2,873 1,871 -34.9%
Gross profit margin % 21.4 15.6
Effective tax rate % 10.6 6.1
Net profit margin % 15.6 10.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

STAR CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 21.3%.
  • Long-term debt down at Rs 2 million as compared to Rs 7 million during FY20, a fall of 74.8%.
  • Current assets rose 18% and stood at Rs 13 billion, while fixed assets rose 2% and stood at Rs 11 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 23 billion as against Rs 21 billion during FY20, thereby witnessing a growth of 10%.

STAR CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 18,571 20,742 11.7
 
Current Liabilities Rs m 3,037 3,684 21.3
Long-term Debt Rs m 7 2 -74.8
Total Liabilities Rs m 21,217 23,361 10.1
 
Current assets Rs m 10,595 12,530 18.3
Fixed Assets Rs m 10,623 10,831 2.0
Total Assets Rs m 21,217 23,361 10.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



STAR CEMENT Cash Flow Statement Analysis

  • STAR CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 145.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -33 million, an improvement of 98% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 159 million from the Rs 1 billion net cash flows seen during FY20.

STAR 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 4,830 3,523 -27.0%
Cash Flow from Investing Activities Rs m -1,355 -3,330 -
Cash Flow from Financing Activities Rs m -2,013 -33 -
Net Cash Flow Rs m 1,461 159 -89.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for STAR CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an decline from the EPS of Rs 7.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 97.1, stands at 21.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 2.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.3 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 44.7 41.7
TTM Earnings per share Rs 7.0 4.5
Diluted earnings per share Rs 7.1 4.6
Price to Cash Flow x 7.3 13.3
TTM P/E ratio x 9.6 21.0
Price / Book Value ratio x 2.1 1.8
Market Cap Rs m 39,923 36,799
Dividends per share (Unadj.) Rs 1.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for STAR CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.4x during FY21, from 3.5x 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 deteriorated and stood at 29.5x during FY21, from 35.4x 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 declined and down at 9.0% during FY21, from 15.5% 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 declined and down at 9.9% during FY21, from 17.8% 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 declined and down at 8.3% during FY21, from 14.0% 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 3.5 3.4
Debtors’ Days Days 242 280
Interest coverage x 35.4 29.5
Debt to equity ratio x 0.0 0.0
Return on assets % 14.0 8.3
Return on equity % 15.5 9.0
Return on capital employed % 17.8 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how STAR CEMENT has performed over the last 5 years, please visit here.

STAR CEMENT Share Price Performance

Over the last one year, STAR CEMENT share price has moved up from Rs 68.3 to Rs 97.1, registering a gain of Rs 28.8 or around 42.1%.

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

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

Annual Report FAQs

What is the current share price of STAR CEMENT?

STAR CEMENT currently trades at Rs 226.3 per share. You can check out the latest share price performance of STAR CEMENT here...

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

The revenues of STAR CEMENT stood at Rs 17,482 m in FY21, which was down -6.7% compared to Rs 18,727 m reported in FY20.

STAR CEMENT's revenue has grown from Rs 15,063 m in FY17 to Rs 17,482 m in FY21.

Over the past 5 years, the revenue of STAR CEMENT has grown at a CAGR of 3.8%.

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

The net profit of STAR CEMENT stood at Rs 1,871 m in FY21, which was down -34.9% compared to Rs 2,873 m reported in FY20.

This compares to a net profit of Rs 3,050 m in FY19 and a net profit of Rs 3,362 m in FY18.

Over the past 5 years, STAR CEMENT net profit has grown at a CAGR of -1.8%.

What does the cash flow statement of STAR 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 STAR CEMENT reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 3,523 m as compared to Rs 4,830 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -3,330 m as compared to Rs -1,355 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -33 m as compared to Rs -2,013 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations3,0004,2066,1654,8303,523
From Investments-894-253-1,926-1,355-3,330
From Financial Activity-2,181-3,929-3,476-2,013-33
Net Cashflow-75247631,461159

What does the Key Ratio analysis of STAR 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 STAR CEMENT reveals:

  • Operating profit margins witnessed a fall and stood at 15.6% in FY21 as against 21.4% in FY20.
  • Net profit margins declined from 15.6% in FY20 to 10.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)27.132.624.521.415.6
Net Profit Margin (%)13.421.016.715.610.9
Debt to Equity Ratio (x)0.30.10.00.00.0

Read: Latest Annual Report Analysis of STAR CEMENT

 

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