DECCAN CEMENTS 2023-24 Annual Report Analysis

Tue, 24 Sep

DECCAN 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.

DECCAN CEMENTS Income Statement Analysis

• Operating income during the year rose 2.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.7% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 0.9% and finance costs decreased by 0.3% YoY, respectively.
• Other income grew by 72.8% YoY.
• Net profit for the year declined by 24.4% YoY.
• Net profit margins during the year declined from 6.3% in FY23 to 4.7% in FY24.

DECCAN CEMENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,815	7,994	2.3%
Other income	Rs m	93	161	72.8%
Total Revenues	Rs m	7,908	8,155	3.1%
Gross profit	Rs m	973	776	-20.2%
Depreciation	Rs m	274	276	0.9%
Interest	Rs m	126	125	-0.3%
Profit before tax	Rs m	666	535	-19.7%
Tax	Rs m	173	162	-6.4%
Profit after tax	Rs m	493	373	-24.4%
Gross profit margin	%	12.4	9.7
Effective tax rate	%	26.0	30.3
Net profit margin	%	6.3	4.7

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DECCAN CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 12.2%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY23, a growth of 142.6%.
• Current assets rose 4% and stood at Rs 4 billion, while fixed assets rose 36% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 25%.

DECCAN CEMENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,875	7,190	4.6
Current Liabilities	Rs m	2,514	2,820	12.2
Long-term Debt	Rs m	1,585	3,845	142.6
Total Liabilities	Rs m	11,552	14,460	25.2
Current assets	Rs m	3,960	4,131	4.3
Fixed Assets	Rs m	7,592	10,330	36.1
Total Assets	Rs m	11,552	14,460	25.2

DECCAN CEMENTS Cash Flow Statement Analysis

• DECCAN CEMENTS's cash flow from operating activities (CFO) during FY24 stood at Rs 567 million, an improvement of 3.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 26.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 198% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 178 million from the Rs -846 million net cash flows seen during FY23.

DECCAN 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	550	567	3.2%
Cash Flow from Investing Activities	Rs m	-2,192	-2,766	-
Cash Flow from Financing Activities	Rs m	797	2,377	198.4%
Net Cash Flow	Rs m	-846	178	-

Current Valuations for DECCAN CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an decline from the EPS of Rs 35.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 609.5, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	557.8	570.6
TTM Earnings per share	Rs	35.2	26.6
Diluted earnings per share	Rs	35.2	26.6
Price to Cash Flow	x	7.6	11.7
TTM P/E ratio	x	11.8	32.9
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	7,154	7,613
Dividends per share (Unadj.)	Rs	3.8	3.0

Ratio Analysis for DECCAN CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.6x 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 5.3x during FY24, from 6.3x 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 5.2% during FY24, from 7.2% 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 6.0% during FY24, from 9.4% 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 3.4% during FY24, from 5.4% 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	1.6	1.5
Debtors’ Days	Days	132	247
Interest coverage	x	6.3	5.3
Debt to equity ratio	x	0.2	0.5
Return on assets	%	5.4	3.4
Return on equity	%	7.2	5.2
Return on capital employed	%	9.4	6.0

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

DECCAN CEMENTS Share Price Performance

Over the last one year, DECCAN CEMENTS share price has moved up from Rs 530.8 to Rs 609.5, registering a gain of Rs 78.8 or around 14.8%.

Overall, the S&P BSE SENSEX is up 27.2% over the year.

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