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HEIDELBERG CEMENT 2023-24 Annual Report Analysis

Mon, 14 Oct

HEIDELBERG 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.

HEIDELBERG CEMENT Income Statement Analysis

• Operating income during the year rose 5.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY24 as against 11.1% in FY23.
• Depreciation charges decreased by 2.4% and finance costs decreased by 24.5% YoY, respectively.
• Other income grew by 20.4% YoY.
• Net profit for the year grew by 69.2% YoY.
• Net profit margins during the year grew from 4.4% in FY23 to 7.1% in FY24.

HEIDELBERG CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,381	23,658	5.7%
Other income	Rs m	453	545	20.4%
Total Revenues	Rs m	22,834	24,203	6.0%
Gross profit	Rs m	2,489	3,167	27.3%
Depreciation	Rs m	1,123	1,097	-2.4%
Interest	Rs m	461	348	-24.5%
Profit before tax	Rs m	1,358	2,268	67.1%
Tax	Rs m	366	591	61.4%
Profit after tax	Rs m	992	1,678	69.2%
Gross profit margin	%	11.1	13.4
Effective tax rate	%	27.0	26.0
Net profit margin	%	4.4	7.1

For Investors: Our Big Prediction

HEIDELBERG CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 6.5%.
• Long-term debt down at Rs 557 million as compared to Rs 1 billion during FY23, a fall of 49.8%.
• Current assets rose 2% and stood at Rs 11 billion, while fixed assets fell 2% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 27 billion during FY23, thereby witnessing a fall of 0%.

HEIDELBERG CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,614	14,698	0.6
Current Liabilities	Rs m	8,500	9,049	6.5
Long-term Debt	Rs m	1,108	557	-49.8
Total Liabilities	Rs m	26,647	26,611	-0.1
Current assets	Rs m	11,128	11,307	1.6
Fixed Assets	Rs m	15,519	15,200	-2.1
Total Assets	Rs m	26,647	26,611	-0.1

HEIDELBERG CEMENT Cash Flow Statement Analysis

• HEIDELBERG CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 54.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -479 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 599 million from the Rs 1 billion net cash flows seen during FY23.

HEIDELBERG 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	2,261	3,495	54.6%
Cash Flow from Investing Activities	Rs m	1,444	-479	-
Cash Flow from Financing Activities	Rs m	-2,665	-2,418	-
Net Cash Flow	Rs m	1,040	599	-42.4%

Current Valuations for HEIDELBERG CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an improvement from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 223.0, stands at 32.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	98.8	104.4
TTM Earnings per share	Rs	4.4	7.4
Diluted earnings per share	Rs	4.4	7.4
Price to Cash Flow	x	17.2	16.6
TTM P/E ratio	x	36.7	32.5
Price / Book Value ratio	x	3.0	3.1
Market Cap	Rs m	43,680	46,133
Dividends per share (Unadj.)	Rs	7.0	8.0

Ratio Analysis for HEIDELBERG CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 7.5x during FY24, from 3.9x 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 11.4% during FY24, from 6.8% 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 17.1% during FY24, from 11.6% 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 7.6% during FY24, from 5.5% 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	1.3	1.2
Debtors’ Days	Days	5	8
Interest coverage	x	3.9	7.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.5	7.6
Return on equity	%	6.8	11.4
Return on capital employed	%	11.6	17.1

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

HEIDELBERG CEMENT Share Price Performance

Over the last one year, HEIDELBERG CEMENT share price has moved up from Rs 190.6 to Rs 223.0, registering a gain of Rs 32.5 or around 17.0%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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