STAR CEMENT 2023-24 Annual Report Analysis

Wed, 11 Sep

STAR 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.

STAR CEMENT Income Statement Analysis

• Operating income during the year rose 7.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY24 as against 17.3% in FY23.
• Depreciation charges increased by 11.8% and finance costs increased by 30.0% YoY, respectively.
• Other income declined by 49.2% YoY.
• Net profit for the year grew by 19.2% YoY.
• Net profit margins during the year grew from 9.2% in FY23 to 10.1% in FY24.

STAR CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,048	29,107	7.6%
Other income	Rs m	521	265	-49.2%
Total Revenues	Rs m	27,569	29,371	6.5%
Gross profit	Rs m	4,684	5,563	18.8%
Depreciation	Rs m	1,311	1,466	11.8%
Interest	Rs m	97	126	30.0%
Profit before tax	Rs m	3,797	4,236	11.6%
Tax	Rs m	1,321	1,285	-2.7%
Profit after tax	Rs m	2,476	2,951	19.2%
Gross profit margin	%	17.3	19.1
Effective tax rate	%	34.8	30.3
Net profit margin	%	9.2	10.1

Dear Reader: If You Invest in Midcap Stocks, this is for You

STAR CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 12.4%.
• Long-term debt stood at Rs 721 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 23% and stood at Rs 8 billion, while fixed assets rose 41% and stood at Rs 26 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 18%.

STAR CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,164	27,101	12.2
Current Liabilities	Rs m	6,950	7,810	12.4
Long-term Debt	Rs m	0	721	0.0
Total Liabilities	Rs m	28,424	33,623	18.3
Current assets	Rs m	9,974	7,657	-23.2
Fixed Assets	Rs m	18,449	25,966	40.7
Total Assets	Rs m	28,424	33,623	18.3

STAR CEMENT Cash Flow Statement Analysis

• STAR CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 36.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion, an improvement of 155.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 865 million, an improvement of 765% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -738 million from the Rs 1 billion net cash flows seen during FY23.

STAR 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	3,584	4,897	36.6%
Cash Flow from Investing Activities	Rs m	-2,549	-6,501	-
Cash Flow from Financing Activities	Rs m	100	865	764.5%
Net Cash Flow	Rs m	1,135	-738	-

Current Valuations for STAR CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an improvement from the EPS of Rs 6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 214.9, stands at 37.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	66.9	72.0
TTM Earnings per share	Rs	6.1	7.3
Diluted earnings per share	Rs	6.1	7.3
Price to Cash Flow	x	11.9	16.1
TTM P/E ratio	x	18.3	37.3
Price / Book Value ratio	x	1.7	2.6
Market Cap	Rs m	41,550	71,035
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for STAR CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.4x 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 34.6x during FY24, from 40.2x 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 10.9% during FY24, from 10.2% 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 15.7% during FY24, from 16.1% 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 9.2% during FY24, from 9.1% 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	1.4	1.0
Debtors’ Days	Days	141	189
Interest coverage	x	40.2	34.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.1	9.2
Return on equity	%	10.2	10.9
Return on capital employed	%	16.1	15.7

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

STAR CEMENT Share Price Performance

Over the last one year, STAR CEMENT share price has moved up from Rs 158.8 to Rs 214.9, registering a gain of Rs 56.2 or around 35.4%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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