INDIA CEMENTS 2023-24 Annual Report Analysis

Mon, 2 Sep

INDIA 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.

INDIA CEMENTS Income Statement Analysis

• Operating income during the year fell 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 227.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.8% in FY24 as against 0.8% in FY23.
• Depreciation charges increased by 2.9% and finance costs increased by 0.8% YoY, respectively.
• Other income grew by 61.4% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 3.0% in FY23 to 4.2% in FY24.

INDIA CEMENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,081	51,122	-8.8%
Other income	Rs m	401	647	61.4%
Total Revenues	Rs m	56,482	51,770	-8.3%
Gross profit	Rs m	431	1,411	227.6%
Depreciation	Rs m	2,193	2,256	2.9%
Interest	Rs m	2,417	2,436	0.8%
Profit before tax	Rs m	-3,778	-2,634	NA
Tax	Rs m	-2,080	-476	NA
Profit after tax	Rs m	-1,698	-2,158	NA
Gross profit margin	%	0.8	2.8
Effective tax rate	%	55.0	18.1
Net profit margin	%	-3.0	-4.2

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INDIA CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 28 billion as compared to Rs 28 billion in FY23, thereby witnessing an decrease of -1.1%.
• Long-term debt down at Rs 14 billion as compared to Rs 18 billion during FY23, a fall of 21.4%.
• Current assets fell 18% and stood at Rs 27 billion, while fixed assets fell 2% and stood at Rs 79 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 107 billion as against Rs 115 billion during FY23, thereby witnessing a fall of 7%.

INDIA CEMENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	57,763	55,747	-3.5
Current Liabilities	Rs m	28,265	27,968	-1.1
Long-term Debt	Rs m	18,012	14,153	-21.4
Total Liabilities	Rs m	114,672	107,006	-6.7
Current assets	Rs m	33,597	27,395	-18.5
Fixed Assets	Rs m	80,404	79,137	-1.6
Total Assets	Rs m	114,672	107,006	-6.7

INDIA CEMENTS Cash Flow Statement Analysis

• INDIA CEMENTS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 194 million from the Rs 186 million net cash flows seen during FY23.

INDIA 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	-195	3,439	-
Cash Flow from Investing Activities	Rs m	4,348	2,479	-43.0%
Cash Flow from Financing Activities	Rs m	-3,968	-5,725	-
Net Cash Flow	Rs m	186	194	4.2%

Current Valuations for INDIA CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.0, an decline from the EPS of Rs -5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 363.7, stands at -159.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 715.8 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	181.0	165.0
TTM Earnings per share	Rs	-5.5	-7.0
Diluted earnings per share	Rs	-5.5	-7.0
Price to Cash Flow	x	115.9	715.8
TTM P/E ratio	x	-33.7	-159.1
Price / Book Value ratio	x	1.2	1.3
Market Cap	Rs m	68,797	70,215
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDIA CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.2x 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 -0.1x during FY24, from -0.6x 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 -3.9% during FY24, from -2.9% 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 -0.3% during FY24, from -1.8% 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 declined and down at 0.3% during FY24, from 0.6% 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	1.2	1.0
Debtors’ Days	Days	537	499
Interest coverage	x	-0.6	-0.1
Debt to equity ratio	x	0.3	0.3
Return on assets	%	0.6	0.3
Return on equity	%	-2.9	-3.9
Return on capital employed	%	-1.8	-0.3

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

INDIA CEMENTS Share Price Performance

Over the last one year, INDIA CEMENTS share price has moved up from Rs 261.1 to Rs 363.7, registering a gain of Rs 102.7 or around 39.3%.

Overall, the S&P BSE SENSEX is up 26.9% over the year.

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