GUJARAT SIDHEE CEM 2020-21 Annual Report Analysis

Wed, 31 Mar

GUJARAT SIDHEE CEM has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GUJARAT SIDHEE CEM Income Statement Analysis

• Operating income during the year fell 3.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY21 as against 13.2% in FY20.
• Depreciation charges decreased by 2.2% and finance costs decreased by 27.2% YoY, respectively.
• Other income grew by 14.2% YoY.
• Net profit for the year declined by 31.9% YoY.
• Net profit margins during the year declined from 7.7% in FY20 to 5.4% in FY21.

GUJARAT SIDHEE CEM Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,848	5,657	-3.3%
Other income	Rs m	77	88	14.2%
Total Revenues	Rs m	5,924	5,745	-3.0%
Gross profit	Rs m	774	555	-28.3%
Depreciation	Rs m	108	106	-2.2%
Interest	Rs m	69	50	-27.2%
Profit before tax	Rs m	674	487	-27.8%
Tax	Rs m	225	181	-19.6%
Profit after tax	Rs m	448	305	-31.9%
Gross profit margin	%	13.2	9.8
Effective tax rate	%	33.4	37.2
Net profit margin	%	7.7	5.4

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GUJARAT SIDHEE CEM Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -4.9%.
• Long-term debt down at Rs 127 million as compared to Rs 210 million during FY20, a fall of 39.5%.
• Current assets rose 20% and stood at Rs 2 billion, while fixed assets rose 8% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 11%.

GUJARAT SIDHEE CEM Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,697	4,512	22.0
Current Liabilities	Rs m	1,715	1,632	-4.9
Long-term Debt	Rs m	210	127	-39.5
Total Liabilities	Rs m	6,273	6,975	11.2
Current assets	Rs m	1,583	1,901	20.1
Fixed Assets	Rs m	4,691	5,073	8.2
Total Assets	Rs m	6,273	6,975	11.2

GUJARAT SIDHEE CEM Cash Flow Statement Analysis

• GUJARAT SIDHEE CEM's cash flow from operating activities (CFO) during FY21 stood at Rs 417 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -62 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -334 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 21 million from the Rs 11 million net cash flows seen during FY20.

GUJARAT SIDHEE CEM Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	427	417	-2.3%
Cash Flow from Investing Activities	Rs m	-78	-62	-
Cash Flow from Financing Activities	Rs m	-338	-334	-
Net Cash Flow	Rs m	11	21	101.2%

Current Valuations for GUJARAT SIDHEE CEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an decline from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 33.2, stands at 9.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	66.9	64.1
TTM Earnings per share	Rs	5.1	3.5
Diluted earnings per share	Rs	5.0	3.4
Price to Cash Flow	x	2.4	6.4
TTM P/E ratio	x	3.0	9.7
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	1,749	2,622
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for GUJARAT SIDHEE CEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 0.9x during FY20. 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 10.6x during FY21, from 10.7x during FY20. 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 6.8% during FY21, from 12.1% during FY21. 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 11.6% during FY21, from 19.0% during FY20. 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 5.1% during FY21, from 8.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.9	1.2
Debtors’ Days	Days	132	114
Interest coverage	x	10.7	10.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.3	5.1
Return on equity	%	12.1	6.8
Return on capital employed	%	19.0	11.6

To see how GUJARAT SIDHEE CEM has performed over the last 5 years, please visit here.

GUJARAT SIDHEE CEM Share Price Performance

Over the last one year, GUJARAT SIDHEE CEM share price has moved up from Rs 15.0 to Rs 33.2, registering a gain of Rs 18.2 or around 121.3%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for GUJARAT SIDHEE CEM and quarterly results for GUJARAT SIDHEE CEM)