ORIENT CEMENT 2023-24 Annual Report Analysis

Tue, 16 Jul

ORIENT 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.

ORIENT CEMENT Income Statement Analysis

• Operating income during the year rose 8.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.1% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 1.6% and finance costs decreased by 9.6% YoY, respectively.
• Other income grew by 29.1% YoY.
• Net profit for the year grew by 42.4% YoY.
• Net profit margins during the year grew from 4.2% in FY23 to 5.5% in FY24.

ORIENT CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,375	31,851	8.4%
Other income	Rs m	120	155	29.1%
Total Revenues	Rs m	29,496	32,006	8.5%
Gross profit	Rs m	3,645	4,492	23.2%
Depreciation	Rs m	1,468	1,492	1.6%
Interest	Rs m	378	342	-9.6%
Profit before tax	Rs m	1,920	2,814	46.6%
Tax	Rs m	691	1,066	54.1%
Profit after tax	Rs m	1,228	1,749	42.4%
Gross profit margin	%	12.4	14.1
Effective tax rate	%	36.0	37.9
Net profit margin	%	4.2	5.5

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ORIENT CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -26.5%.
• Long-term debt down at Rs 705 million as compared to Rs 982 million during FY23, a fall of 28.2%.
• Current assets rose 2% and stood at Rs 7 billion, while fixed assets fell 2% and stood at Rs 22 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 29 billion as against Rs 29 billion during FY23, thereby witnessing a fall of 1%.

ORIENT CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,965	17,418	9.1
Current Liabilities	Rs m	8,037	5,905	-26.5
Long-term Debt	Rs m	982	705	-28.2
Total Liabilities	Rs m	28,768	28,554	-0.7
Current assets	Rs m	6,692	6,850	2.4
Fixed Assets	Rs m	22,076	21,704	-1.7
Total Assets	Rs m	28,768	28,554	-0.7

ORIENT CEMENT Cash Flow Statement Analysis

• ORIENT CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 283.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -853 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 70 million from the Rs 264 million net cash flows seen during FY23.

ORIENT 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	1,110	4,259	283.7%
Cash Flow from Investing Activities	Rs m	-1,198	-853	-
Cash Flow from Financing Activities	Rs m	352	-3,336	-
Net Cash Flow	Rs m	264	70	-73.4%

Current Valuations for ORIENT CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an improvement from the EPS of Rs 6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 304.0, stands at 35.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 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	143.4	155.5
TTM Earnings per share	Rs	6.0	8.5
Diluted earnings per share	Rs	6.0	8.5
Price to Cash Flow	x	8.3	12.8
TTM P/E ratio	x	18.3	35.6
Price / Book Value ratio	x	1.6	2.4
Market Cap	Rs m	25,926	41,460
Dividends per share (Unadj.)	Rs	1.5	2.3

Ratio Analysis for ORIENT CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 0.8x 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 9.2x during FY24, from 6.1x 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 10.0% during FY24, from 7.7% 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 17.4% during FY24, from 13.6% 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 7.3% during FY24, from 5.6% 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	0.8	1.2
Debtors’ Days	Days	210	257
Interest coverage	x	6.1	9.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.6	7.3
Return on equity	%	7.7	10.0
Return on capital employed	%	13.6	17.4

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

ORIENT CEMENT Share Price Performance

Over the last one year, ORIENT CEMENT share price has moved up from Rs 143.6 to Rs 304.0, registering a gain of Rs 160.4 or around 111.7%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

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