ANDHRA CEMENTS 2023-24 Annual Report Analysis

Wed, 5 Jun

ANDHRA CEMENTS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ANDHRA CEMENTS Income Statement Analysis

• Operating income during the year rose 0.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 98.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.3% in FY24 as against 0.0% in FY23.
• Depreciation charges increased by 20.6% and finance costs increased by 350.2% YoY, respectively.
• Other income grew by 1672.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.0% in FY23 to 0.0% in FY24.

ANDHRA CEMENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	0	2,681	0.0%
Other income	Rs m	5	85	1,672.9%
Total Revenues	Rs m	5	2,766	57,529.2%
Gross profit	Rs m	9,457	116	-98.8%
Depreciation	Rs m	468	564	20.6%
Interest	Rs m	157	705	350.2%
Profit before tax	Rs m	8,837	-1,069	NA
Tax	Rs m	-659	-413	NA
Profit after tax	Rs m	9,496	-656	NA
Gross profit margin	%	0.0	4.3
Effective tax rate	%	-7.5	38.6
Net profit margin	%	0.0	0.0

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ANDHRA CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 271 million in FY23, thereby witnessing an increase of 399.9%.
• Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY23, a growth of 21.3%.
• Current assets rose 112% and stood at Rs 1 billion, while fixed assets rose 7% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 15%.

ANDHRA CEMENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,552	2,968	-16.4
Current Liabilities	Rs m	271	1,353	399.9
Long-term Debt	Rs m	5,249	6,365	21.3
Total Liabilities	Rs m	8,429	9,725	15.4
Current assets	Rs m	646	1,370	112.2
Fixed Assets	Rs m	7,783	8,341	7.2
Total Assets	Rs m	8,429	9,725	15.4

ANDHRA CEMENTS Cash Flow Statement Analysis

• ANDHRA CEMENTS's cash flow from operating activities (CFO) during FY24 stood at Rs -267 million, an improvement of 2,545.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -960 million, an improvement of 173.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 897 million, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -330 million from the Rs 437 million net cash flows seen during FY23.

ANDHRA CEMENTS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-10	-267	-
Cash Flow from Investing Activities	Rs m	-351	-960	-
Cash Flow from Financing Activities	Rs m	798	897	12.3%
Net Cash Flow	Rs m	437	-330	-

Current Valuations for ANDHRA CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.1, an decline from the EPS of Rs 103.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.1, stands at -11.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at -107.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	0.0	29.1
TTM Earnings per share	Rs	103.0	-7.1
Diluted earnings per share	Rs	103.0	-7.1
Price to Cash Flow	x	0.0	-107.0
TTM P/E ratio	x	0.0	-11.1
Price / Book Value ratio	x	0.3	3.3
Market Cap	Rs m	951	9,848
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ANDHRA CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 2.4x during FY23. 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 -0.5x during FY24, from 57.4x during FY23. 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 -22.1% during FY24, from 267.3% during FY24. 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 -3.9% during FY24, from 102.2% during FY23. 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 0.5% during FY24, from 114.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.4	1.0
Debtors’ Days	Days	0	524
Interest coverage	x	57.4	-0.5
Debt to equity ratio	x	1.5	2.1
Return on assets	%	114.5	0.5
Return on equity	%	267.3	-22.1
Return on capital employed	%	102.2	-3.9

To see how ANDHRA CEMENTS has performed over the last 5 years, please visit here.

ANDHRA CEMENTS Share Price Performance

Over the last one year, ANDHRA CEMENTS share price has moved down from Rs 149.7 to Rs 79.1, registering a loss of Rs 70.5 or around 47.1%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, check out historical annual results for ANDHRA CEMENTS and quarterly results for ANDHRA CEMENTS)