ULTRATECH CEMENT 2023-24 Annual Report Analysis

Wed, 24 Jul

ULTRATECH CEMENT 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.

ULTRATECH CEMENT Income Statement Analysis

• Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY24 as against 16.8% in FY23.
• Depreciation charges increased by 8.9% and finance costs increased by 17.7% YoY, respectively.
• Other income grew by 22.6% YoY.
• Net profit for the year grew by 38.1% YoY.
• Net profit margins during the year grew from 8.0% in FY23 to 9.9% in FY24.

ULTRATECH CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	632,400	709,081	12.1%
Other income	Rs m	5,031	6,170	22.6%
Total Revenues	Rs m	637,431	715,251	12.2%
Gross profit	Rs m	106,239	129,186	21.6%
Depreciation	Rs m	28,880	31,453	8.9%
Interest	Rs m	8,227	9,680	17.7%
Profit before tax	Rs m	74,163	94,222	27.0%
Tax	Rs m	23,429	24,183	3.2%
Profit after tax	Rs m	50,734	70,040	38.1%
Gross profit margin	%	16.8	18.2
Effective tax rate	%	31.6	25.7
Net profit margin	%	8.0	9.9

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ULTRATECH CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 269 billion as compared to Rs 234 billion in FY23, thereby witnessing an increase of 14.8%.
• Long-term debt down at Rs 53 billion as compared to Rs 54 billion during FY23, a fall of 0.9%.
• Current assets rose 12% and stood at Rs 231 billion, while fixed assets rose 10% and stood at Rs 776 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,008 billion as against Rs 914 billion during FY23, thereby witnessing a growth of 10%.

ULTRATECH CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	542,444	601,055	10.8
Current Liabilities	Rs m	234,318	269,060	14.8
Long-term Debt	Rs m	53,564	53,078	-0.9
Total Liabilities	Rs m	913,804	1,007,971	10.3
Current assets	Rs m	207,249	231,435	11.7
Fixed Assets	Rs m	706,375	776,387	9.9
Total Assets	Rs m	913,804	1,007,971	10.3

ULTRATECH CEMENT Cash Flow Statement Analysis

• ULTRATECH CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 109 billion, an improvement of 20.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -88 billion, an improvement of 22.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -19 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY23.

ULTRATECH CEMENT 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	90,685	108,975	20.2%
Cash Flow from Investing Activities	Rs m	-71,871	-87,881	-
Cash Flow from Financing Activities	Rs m	-16,310	-19,257	-
Net Cash Flow	Rs m	2,498	1,832	-26.7%

Current Valuations for ULTRATECH CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 242.6, an improvement from the EPS of Rs 175.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 11,398.1, stands at 47.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 25.4 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	2,190.6	2,456.2
TTM Earnings per share	Rs	175.7	242.6
Diluted earnings per share	Rs	175.7	242.6
Price to Cash Flow	x	27.6	25.4
TTM P/E ratio	x	43.4	47.1
Price / Book Value ratio	x	3.4	4.3
Market Cap	Rs m	1,847,794	2,573,841
Dividends per share (Unadj.)	Rs	38.0	70.0

Ratio Analysis for ULTRATECH CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 0.9x 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 improved and stood at 10.7x during FY24, from 10.0x 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 improved and stood at 11.7% during FY24, from 9.4% 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 improved and stood at 15.9% during FY24, from 13.8% 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 improved and stood at 7.9% during FY24, from 6.5% 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	0.9	0.9
Debtors’ Days	Days	2	2
Interest coverage	x	10.0	10.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.5	7.9
Return on equity	%	9.4	11.7
Return on capital employed	%	13.8	15.9

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 up from Rs 8,219.9 to Rs 11,398.1, registering a gain of Rs 3,178.2 or around 38.7%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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