AMBUJA CEMENT 2020-21 Annual Report Analysis

Fri, 31 Dec

AMBUJA CEMENT has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

AMBUJA CEMENT Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in CY21 as against 19.7% in CY20.
• Depreciation charges decreased by 0.8% and finance costs increased by 3.9% YoY, respectively.
• Other income declined by 19.2% YoY.
• Net profit for the year grew by 19.4% YoY.
• Net profit margins during the year grew from 12.6% in CY20 to 12.7% in CY21.

AMBUJA CEMENT Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	245,162	289,655	18.1%
Other income	Rs m	4,496	3,633	-19.2%
Total Revenues	Rs m	249,658	293,288	17.5%
Gross profit	Rs m	48,296	60,791	25.9%
Depreciation	Rs m	11,618	11,525	-0.8%
Interest	Rs m	1,402	1,457	3.9%
Profit before tax	Rs m	39,772	51,442	29.3%
Tax	Rs m	8,848	14,534	64.3%
Profit after tax	Rs m	30,924	36,908	19.4%
Gross profit margin	%	19.7	21.0
Effective tax rate	%	22.2	28.3
Net profit margin	%	12.6	12.7

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AMBUJA CEMENT Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 112 billion as compared to Rs 93 billion in CY20, thereby witnessing an increase of 21.2%.
• Long-term debt down at Rs 435 million as compared to Rs 436 million during CY20, a fall of 0.2%.
• Current assets rose 33% and stood at Rs 170 billion, while fixed assets rose 5% and stood at Rs 282 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 452 billion as against Rs 397 billion during CY20, thereby witnessing a growth of 14%.

AMBUJA CEMENT Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	227,576	253,537	11.4
Current Liabilities	Rs m	92,604	112,279	21.2
Long-term Debt	Rs m	436	435	-0.2
Total Liabilities	Rs m	397,178	452,044	13.8
Current assets	Rs m	128,048	170,224	32.9
Fixed Assets	Rs m	269,130	281,820	4.7
Total Assets	Rs m	397,178	452,044	13.8

AMBUJA CEMENT Cash Flow Statement Analysis

• AMBUJA CEMENT's cash flow from operating activities (CFO) during CY21 stood at Rs 53 billion, an improvement of 9.9% on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -20 billion, an improvement of 52.4% on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -5 billion, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs 28 billion from the Rs -4 billion net cash flows seen during CY20.

AMBUJA CEMENT Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	48,323	53,092	9.9%
Cash Flow from Investing Activities	Rs m	-13,173	-20,071	-
Cash Flow from Financing Activities	Rs m	-39,562	-5,158	-
Net Cash Flow	Rs m	-4,412	27,864	-

Current Valuations for AMBUJA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.6, an improvement from the EPS of Rs 15.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 362.4, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	123.5	145.9
TTM Earnings per share	Rs	15.6	18.6
Diluted earnings per share	Rs	15.6	18.6
Price to Cash Flow	x	15.5	14.0
TTM P/E ratio	x	20.3	21.7
Price / Book Value ratio	x	1.8	2.7
Market Cap	Rs m	405,667	680,034
Dividends per share (Unadj.)	Rs	18.0	6.3

Ratio Analysis for AMBUJA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during CY21, from 1.4x during CY20. 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 36.3x during CY21, from 29.4x during CY20. 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 14.6% during CY21, from 13.6% during CY21. 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 20.8% during CY21, from 18.1% during CY20. 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 8.5% during CY21, from 8.1% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	1	1
Interest coverage	x	29.4	36.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	8.5
Return on equity	%	13.6	14.6
Return on capital employed	%	18.1	20.8

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

AMBUJA CEMENT Share Price Performance

Over the last one year, AMBUJA CEMENT share price has moved up from Rs 320.1 to Rs 362.4, registering a gain of Rs 42.3 or around 13.2%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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