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ULTRATECH CEMENT 2017-18 Annual Report Analysis
Sat, 31 Mar

ULTRATECH CEMENT has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ULTRATECH CEMENT Income Statement Analysis

  • Operating income during the year rose 36.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.3% in FY18 as against 23.6% in FY17.
  • Depreciation charges increased by 37.0% and finance costs increased by 93.3% YoY, respectively.
  • Other income declined by 9.2% YoY.
  • Net profit for the year declined by 18.0% YoY.
  • Net profit margins during the year declined from 12.3% in FY17 to 7.4% in FY18.

ULTRATECH CEMENT Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 221,040 300,848 36.1%
Other income Rs m 6,481 5,886 -9.2%
Total Revenues Rs m 227,521 306,734 34.8%
Gross profit Rs m 52,124 57,986 11.2%
Depreciation Rs m 13,484 18,479 37.0%
Interest Rs m 6,401 12,376 93.3%
Profit before tax Rs m 38,720 33,016 -14.7%
Tax Rs m 11,585 10,770 -7.0%
Profit after tax Rs m 27,135 22,246 -18.0%
Gross profit margin % 23.6 19.3
Effective tax rate % 29.9 32.6
Net profit margin % 12.3 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

ULTRATECH CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 115 billion as compared to Rs 83 billion in FY17, thereby witnessing an increase of 38.3%.
  • Long-term debt stood at Rs 159 billion as compared to Rs 64 billion during FY17, a growth of 149.0%.
  • Current assets fell 14% and stood at Rs 115 billion, while fixed assets rose 58% and stood at Rs 457 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 571 billion as against Rs 422 billion during FY17, thereby witnessing a growth of 35%.

ULTRATECH CEMENT Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 243,710 263,639 8.2
 
Current Liabilities Rs m 83,286 115,154 38.3
Long-term Debt Rs m 63,708 158,635 149.0
Total Liabilities Rs m 422,091 571,411 35.4
 
Current assets Rs m 133,257 114,613 -14.0
Fixed Assets Rs m 288,834 456,798 58.2
Total Assets Rs m 422,091 571,411 35.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ULTRATECH CEMENT Cash Flow Statement Analysis

  • ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY18 stood at Rs 39 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 19 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -57 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 184 million from the Rs -314 million net cash flows seen during FY17.

ULTRATECH CEMENT Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 50,050 38,877 -22.3%
Cash Flow from Investing Activities Rs m -24,803 18,616 -
Cash Flow from Financing Activities Rs m -25,350 -57,351 -
Net Cash Flow Rs m -314 184 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ULTRATECH CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.0, an decline from the EPS of Rs 98.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,947.9, stands at 50.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 805.2 1,095.5
TTM Earnings per share Rs 98.8 81.0
Diluted earnings per share Rs 94.0 77.1
Price to Cash Flow x 28.4 28.2
TTM P/E ratio x 42.4 50.5
Price / Book Value ratio x 4.0 4.4
Market Cap Rs m 985,483 1,149,026
Dividends per share (Unadj.) Rs 10.0 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ULTRATECH CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.6x during FY17. 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 3.7x during FY18, from 7.0x during FY17. 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 8.4% during FY18, from 11.1% during FY18. 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 10.7% during FY18, from 14.7% during FY17. 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 6.1% during FY18, from 7.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.6 1.0
Debtors’ Days Days 3 3
Interest coverage x 7.0 3.7
Debt to equity ratio x 0.3 0.6
Return on assets % 7.9 6.1
Return on equity % 11.1 8.4
Return on capital employed % 14.7 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ULTRATECH CEMENT Share Price Performance

Over the last one year, ULTRATECH CEMENT share price has moved down from Rs 3,990.0 to Rs 3,947.9, registering a loss of Rs 42.1 or around 1.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of ULTRATECH CEMENT?

ULTRATECH CEMENT currently trades at Rs 6,573.2 per share. You can check out the latest share price performance of ULTRATECH CEMENT here...

What was the revenue of ULTRATECH CEMENT in FY18? How does it compare to earlier years?

The revenues of ULTRATECH CEMENT stood at Rs 306,734 m in FY18, which was up 34.8% compared to Rs 227,521 m reported in FY17.

ULTRATECH CEMENT's revenue has grown from Rs 192,486 m in FY14 to Rs 306,734 m in FY18.

Over the past 5 years, the revenue of ULTRATECH CEMENT has grown at a CAGR of 12.4%.

What was the net profit of ULTRATECH CEMENT in FY18? How does it compare to earlier years?

The net profit of ULTRATECH CEMENT stood at Rs 22,246 m in FY18, which was down -18.0% compared to Rs 27,135 m reported in FY17.

This compares to a net profit of Rs 24,796 m in FY16 and a net profit of Rs 21,021 m in FY15.

Over the past 5 years, ULTRATECH CEMENT net profit has grown at a CAGR of 0.1%.

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

  • Cash flow from operations decreased in FY18 and stood at Rs 38,877 m as compared to Rs 50,050 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs 18,616 m as compared to Rs -24,803 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -57,351 m as compared to Rs -25,350 m in FY17.

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

(Rs m)FY14FY15FY16FY17FY18
From Operations34,54541,90245,25550,05038,877
From Investments-23,960-21,659-37,267-24,80318,616
From Financial Activity-9,488-21,098-8,440-25,350-57,351
Net Cashflow1,637-63481-314184

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

  • Operating profit margins witnessed a fall and stood at 19.3% in FY18 as against 23.6% in FY17.
  • Net profit margins declined from 12.3% in FY17 to 7.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.6 as compared to 0.3 in FY17.

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

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)21.320.822.423.619.3
Net Profit Margin (%)11.79.911.312.37.4
Debt to Equity Ratio (x)0.40.30.20.30.6

Read: Latest Annual Report Analysis of ULTRATECH CEMENT

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