SHREE CEMENT 2023-24 Annual Report Analysis

Tue, 16 Jul

SHREE 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.

SHREE CEMENT Income Statement Analysis

• Operating income during the year rose 14.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 52.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY24 as against 13.2% in FY23.
• Depreciation charges increased by 14.3% and finance costs decreased by 1.7% YoY, respectively.
• Other income grew by 32.5% YoY.
• Net profit for the year grew by 88.8% YoY.
• Net profit margins during the year grew from 5.7% in FY23 to 9.4% in FY24.

SHREE CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	223,965	255,313	14.0%
Other income	Rs m	4,701	6,231	32.5%
Total Revenues	Rs m	228,667	261,544	14.4%
Gross profit	Rs m	29,485	44,918	52.3%
Depreciation	Rs m	16,607	18,973	14.3%
Interest	Rs m	2,629	2,583	-1.7%
Profit before tax	Rs m	14,950	29,592	97.9%
Tax	Rs m	2,259	5,630	149.2%
Profit after tax	Rs m	12,691	23,962	88.8%
Gross profit margin	%	13.2	17.6
Effective tax rate	%	15.1	19.0
Net profit margin	%	5.7	9.4

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SHREE CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 61 billion as compared to Rs 67 billion in FY23, thereby witnessing an decrease of -9.0%.
• Long-term debt stood at Rs 7 billion as compared to Rs 6 billion during FY23, a growth of 22.8%.
• Current assets rose 36% and stood at Rs 122 billion, while fixed assets fell 10% and stood at Rs 151 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 273 billion as against Rs 257 billion during FY23, thereby witnessing a growth of 6%.

SHREE CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	186,364	207,029	11.1
Current Liabilities	Rs m	67,321	61,278	-9.0
Long-term Debt	Rs m	5,809	7,131	22.8
Total Liabilities	Rs m	256,517	272,953	6.4
Current assets	Rs m	89,679	122,122	36.2
Fixed Assets	Rs m	166,837	150,831	-9.6
Total Assets	Rs m	256,517	272,953	6.4

SHREE CEMENT Cash Flow Statement Analysis

• SHREE CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 33 billion, an improvement of 30.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -14 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -17 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -1 billion net cash flows seen during FY23.

SHREE 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	25,687	33,475	30.3%
Cash Flow from Investing Activities	Rs m	-24,145	-14,185	-
Cash Flow from Financing Activities	Rs m	-2,767	-17,101	-
Net Cash Flow	Rs m	-1,134	2,196	-

Current Valuations for SHREE CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 664.1, an improvement from the EPS of Rs 351.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 28,038.0, stands at 42.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 22.4 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	6,207.5	7,076.3
TTM Earnings per share	Rs	351.8	664.1
Diluted earnings per share	Rs	351.8	664.1
Price to Cash Flow	x	32.2	22.4
TTM P/E ratio	x	74.4	42.2
Price / Book Value ratio	x	4.3	4.6
Market Cap	Rs m	810,246	961,757
Dividends per share (Unadj.)	Rs	100.0	105.0

Ratio Analysis for SHREE CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x 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 12.5x during FY24, from 6.7x 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 11.6% 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 15.0% during FY24, from 9.1% 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 9.7% during FY24, from 6.0% 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	2.0
Debtors’ Days	Days	2	2
Interest coverage	x	6.7	12.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	9.7
Return on equity	%	6.8	11.6
Return on capital employed	%	9.1	15.0

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

SHREE CEMENT Share Price Performance

Over the last one year, SHREE CEMENT share price has moved up from Rs 24,328.5 to Rs 28,038.0, registering a gain of Rs 3,709.6 or around 15.2%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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