SHIVA CEMENT 2020-21 Annual Report Analysis

Wed, 31 Mar

SHIVA 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.

SHIVA CEMENT Income Statement Analysis

• Operating income during the year fell 12.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 37.9% in FY21 as against 25.9% in FY20.
• Depreciation charges decreased by 0.6% and finance costs increased by 2.9% YoY, respectively.
• Other income grew by 2651.7% YoY.
• Net profit for the year declined by 3.8% YoY.
• Net profit margins during the year declined from 70.5% in FY20 to 77.1% in FY21.

SHIVA CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	324	285	-12.0%
Other income	Rs m	1	41	2,651.7%
Total Revenues	Rs m	325	326	0.2%
Gross profit	Rs m	-84	-108	28.9%
Depreciation	Rs m	79	78	-0.6%
Interest	Rs m	145	150	2.9%
Profit before tax	Rs m	-306	-295	-3.8%
Tax	Rs m	-78	-75	-3.8%
Profit after tax	Rs m	-228	-220	-3.8%
Gross profit margin	%	-25.9	-37.9
Effective tax rate	%	25.5	25.5
Net profit margin	%	-70.5	-77.1

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SHIVA CEMENT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 714 million as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -61.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 162 million during FY20, a growth of 1392.3%.
• Current assets rose 53% and stood at Rs 269 million, while fixed assets rose 45% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 46%.

SHIVA CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	62	-173	-377.6
Current Liabilities	Rs m	1,833	714	-61.0
Long-term Debt	Rs m	162	2,418	1,392.3
Total Liabilities	Rs m	1,798	2,627	46.2
Current assets	Rs m	176	269	52.9
Fixed Assets	Rs m	1,622	2,358	45.4
Total Assets	Rs m	1,798	2,627	46.2

SHIVA CEMENT Cash Flow Statement Analysis

• SHIVA CEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs -45 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -751 million, an improvement of 1,085.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 864 million, an improvement of 396% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 69 million from the Rs -1 million net cash flows seen during FY20.

SHIVA 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	-112	-45	-
Cash Flow from Investing Activities	Rs m	-63	-751	-
Cash Flow from Financing Activities	Rs m	174	864	395.7%
Net Cash Flow	Rs m	-1	69	-

Current Valuations for SHIVA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.1, an improvement from the EPS of Rs -1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23.4, stands at -20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -26.4 times, while the price to sales ratio stands at 16.0 times.
• The company's price to cash flow (P/CF) ratio stood at -23.1 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	1.7	1.5
TTM Earnings per share	Rs	-1.2	-1.1
Diluted earnings per share	Rs	-1.2	-1.1
Price to Cash Flow	x	-9.4	-23.1
TTM P/E ratio	x	-6.2	-20.7
Price / Book Value ratio	x	36.8	-18.9
Market Cap	Rs m	2,291	3,262
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHIVA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY21, from 0.1x 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 -1.0x during FY21, from -1.1x 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 127.2% during FY21, from -366.9% 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 -6.5% during FY21, from -71.8% 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 improved and stood at -2.7% during FY21, from -4.6% 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	0.1	0.4
Debtors’ Days	Days	164	241
Interest coverage	x	-1.1	-1.0
Debt to equity ratio	x	2.6	-14.0
Return on assets	%	-4.6	-2.7
Return on equity	%	-366.9	127.2
Return on capital employed	%	-71.8	-6.5

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

SHIVA CEMENT Share Price Performance

Over the last one year, SHIVA CEMENT share price has moved up from Rs 7.2 to Rs 23.4, registering a gain of Rs 16.1 or around 223.0%.

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

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

Read: Latest Annual Report Analysis of SHIVA CEMENT