SHIVA CEMENT 2021-22 Annual Report Analysis

Sat, 17 Sep

SHIVA 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.

SHIVA CEMENT Income Statement Analysis

• Operating income during the year fell 87.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 648.4% in FY22 as against 38.0% in FY21.
• Depreciation charges decreased by 9.8% and finance costs decreased by 41.2% YoY, respectively.
• Other income declined by 7.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 77.2% in FY21 to 736.3% in FY22.

SHIVA CEMENT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	285	35	-87.8%
Other income	Rs m	41	38	-7.2%
Total Revenues	Rs m	326	73	-77.7%
Gross profit	Rs m	-108	-225	NA
Depreciation	Rs m	78	71	-9.8%
Interest	Rs m	150	88	-41.2%
Profit before tax	Rs m	-295	-345	NA
Tax	Rs m	-75	-90	NA
Profit after tax	Rs m	-220	-255	NA
Gross profit margin	%	-38.0	-648.4
Effective tax rate	%	25.5	26.1
Net profit margin	%	-77.2	-736.3

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SHIVA CEMENT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 714 million in FY21, thereby witnessing an increase of 279.2%.
• Long-term debt stood at Rs 7 billion as compared to Rs 2 billion during FY21, a growth of 173.0%.
• Current assets rose 253% and stood at Rs 1 billion, while fixed assets rose 220% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 224%.

SHIVA CEMENT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-173	-427	NA
Current Liabilities	Rs m	714	2,709	279.2
Long-term Debt	Rs m	2,418	6,600	173.0
Total Liabilities	Rs m	2,627	8,502	223.6
Current assets	Rs m	298	1,053	252.8
Fixed Assets	Rs m	2,329	7,449	219.9
Total Assets	Rs m	2,627	8,502	223.6

SHIVA CEMENT Cash Flow Statement Analysis

• SHIVA CEMENT's cash flow from operating activities (CFO) during FY22 stood at Rs -435 million, an improvement of 874.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 475.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 billion, an improvement of 457% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 53 million from the Rs 69 million net cash flows seen during FY21.

SHIVA 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	-45	-435	-
Cash Flow from Investing Activities	Rs m	-751	-4,324	-
Cash Flow from Financing Activities	Rs m	864	4,812	456.7%
Net Cash Flow	Rs m	69	53	-22.0%

Current Valuations for SHIVA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.3, an decline from the EPS of Rs -1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.6, stands at -33.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -26.3 times, while the price to sales ratio stands at 323.8 times.
• The company's price to cash flow (P/CF) ratio stood at -34.4 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	1.5	0.2
TTM Earnings per share	Rs	-1.1	-1.3
Diluted earnings per share	Rs	-1.1	-1.3
Price to Cash Flow	x	-32.2	-34.4
TTM P/E ratio	x	-20.7	-33.5
Price / Book Value ratio	x	-18.9	-14.9
Market Cap	Rs m	3,262	6,357
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHIVA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY22, from 0.4x 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 deteriorated and stood at -2.9x during FY22, from -1.0x 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 59.7% during FY22, from 127.2% 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 improved and stood at -4.2% during FY22, from -6.5% 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 improved and stood at -2.0% during FY22, from -2.7% 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	0.4	0.4
Debtors’ Days	Days	242	26
Interest coverage	x	-1.0	-2.9
Debt to equity ratio	x	-14.0	-15.4
Return on assets	%	-2.7	-2.0
Return on equity	%	127.2	59.7
Return on capital employed	%	-6.5	-4.2

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 35.1 to Rs 57.6, registering a gain of Rs 22.5 or around 64.0%.

Overall, the S&P BSE SENSEX is up 0.2% over the year.

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