SAGAR CEMENTS 2023-24 Annual Report Analysis

Wed, 5 Jun

SAGAR 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.

SAGAR CEMENTS Income Statement Analysis

• Operating income during the year rose 12.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY24 as against 6.9% in FY23.
• Depreciation charges increased by 37.5% and finance costs decreased by 8.3% YoY, respectively.
• Other income declined by 62.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.4% in FY23 to 2.1% in FY24.

SAGAR CEMENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,295	25,046	12.3%
Other income	Rs m	2,227	830	-62.8%
Total Revenues	Rs m	24,522	25,876	5.5%
Gross profit	Rs m	1,532	2,319	51.4%
Depreciation	Rs m	1,558	2,141	37.5%
Interest	Rs m	2,016	1,848	-8.3%
Profit before tax	Rs m	185	-841	NA
Tax	Rs m	89	-321	NA
Profit after tax	Rs m	96	-521	NA
Gross profit margin	%	6.9	9.3
Effective tax rate	%	48.0	38.1
Net profit margin	%	0.4	-2.1

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SAGAR CEMENTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 32.9%.
• Long-term debt down at Rs 11 billion as compared to Rs 12 billion during FY23, a fall of 5.5%.
• Current assets rose 18% and stood at Rs 9 billion, while fixed assets rose 0% and stood at Rs 34 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 43 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 4%.

SAGAR CEMENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,946	19,412	-2.7
Current Liabilities	Rs m	8,040	10,681	32.9
Long-term Debt	Rs m	11,520	10,891	-5.5
Total Liabilities	Rs m	41,341	42,813	3.6
Current assets	Rs m	7,863	9,257	17.7
Fixed Assets	Rs m	33,479	33,542	0.2
Total Assets	Rs m	41,341	42,813	3.6

SAGAR CEMENTS Cash Flow Statement Analysis

• SAGAR CEMENTS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 128.6% 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 -2 billion, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -77 million from the Rs 319 million net cash flows seen during FY23.

SAGAR 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	1,752	4,004	128.6%
Cash Flow from Investing Activities	Rs m	1,700	-1,875	-
Cash Flow from Financing Activities	Rs m	-3,666	-2,206	-
Net Cash Flow	Rs m	319	-77	-

Current Valuations for SAGAR CEMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.0, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 198.9, stands at -50.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	170.6	191.6
TTM Earnings per share	Rs	0.7	-4.0
Diluted earnings per share	Rs	0.7	-4.0
Price to Cash Flow	x	15.0	19.7
TTM P/E ratio	x	324.5	-50.6
Price / Book Value ratio	x	1.4	1.6
Market Cap	Rs m	28,040	31,935
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for SAGAR CEMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x 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 deteriorated and stood at 0.5x during FY24, from 1.1x 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 declined and down at -2.7% during FY24, from 0.5% 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 declined and down at 3.3% during FY24, from 7.0% 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 3.1% during FY24, from 5.1% 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	1.0	0.9
Debtors’ Days	Days	218	303
Interest coverage	x	1.1	0.5
Debt to equity ratio	x	0.6	0.6
Return on assets	%	5.1	3.1
Return on equity	%	0.5	-2.7
Return on capital employed	%	7.0	3.3

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

SAGAR CEMENTS Share Price Performance

Over the last one year, SAGAR CEMENTS share price has moved down from Rs 213.5 to Rs 198.9, registering a loss of Rs 14.6 or around 6.8%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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