SAURASHTRA CEMENT 2023-24 Annual Report Analysis

Mon, 29 Jul

SAURASHTRA 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.

SAURASHTRA CEMENT Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1739.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.2% in FY24 as against 0.4% in FY23.
• Depreciation charges increased by 21.1% and finance costs decreased by 12.9% YoY, respectively.
• Other income grew by 172.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.3% in FY23 to 3.2% in FY24.

SAURASHTRA CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,453	17,652	7.3%
Other income	Rs m	131	356	172.0%
Total Revenues	Rs m	16,584	18,007	8.6%
Gross profit	Rs m	60	1,094	1,739.0%
Depreciation	Rs m	389	471	21.1%
Interest	Rs m	93	81	-12.9%
Profit before tax	Rs m	-291	899	NA
Tax	Rs m	-71	333	NA
Profit after tax	Rs m	-220	566	NA
Gross profit margin	%	0.4	6.2
Effective tax rate	%	24.5	37.0
Net profit margin	%	-1.3	3.2

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SAURASHTRA CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 43.2%.
• Long-term debt stood at Rs 104 million as compared to Rs 54 million during FY23, a growth of 91.8%.
• Current assets rose 83% and stood at Rs 6 billion, while fixed assets fell 5% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 17%.

SAURASHTRA CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,245	9,258	12.3
Current Liabilities	Rs m	3,756	5,380	43.2
Long-term Debt	Rs m	54	104	91.8
Total Liabilities	Rs m	13,575	15,941	17.4
Current assets	Rs m	3,507	6,413	82.9
Fixed Assets	Rs m	10,069	9,528	-5.4
Total Assets	Rs m	13,575	15,941	17.4

SAURASHTRA CEMENT Cash Flow Statement Analysis

• SAURASHTRA CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 623.0% 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 27 million, an improvement of 105% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs 48 million net cash flows seen during FY23.

SAURASHTRA 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	215	1,551	623.0%
Cash Flow from Investing Activities	Rs m	325	-1,571	-
Cash Flow from Financing Activities	Rs m	-491	27	-
Net Cash Flow	Rs m	48	6	-87.1%

Current Valuations for SAURASHTRA CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.1, an improvement from the EPS of Rs -3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 140.6, stands at 27.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	290.1	159.1
TTM Earnings per share	Rs	-3.9	5.1
Diluted earnings per share	Rs	-2.0	5.1
Price to Cash Flow	x	32.7	9.3
TTM P/E ratio	x	-25.1	27.6
Price / Book Value ratio	x	0.4	1.0
Market Cap	Rs m	3,525	9,636
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for SAURASHTRA CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 0.9x 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 12.1x during FY24, from -2.1x 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 6.1% during FY24, from -2.7% 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 10.5% during FY24, from -2.4% 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 4.1% during FY24, from -0.9% 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	0.9	1.2
Debtors’ Days	Days	174	182
Interest coverage	x	-2.1	12.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.9	4.1
Return on equity	%	-2.7	6.1
Return on capital employed	%	-2.4	10.5

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

SAURASHTRA CEMENT Share Price Performance

Over the last one year, SAURASHTRA CEMENT share price has moved up from Rs 61.9 to Rs 140.6, registering a gain of Rs 78.7 or around 127.2%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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