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Saurashtra Cement (BOM:502175) ROE % : 4.25% (As of Jun. 2024)


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What is Saurashtra Cement ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Saurashtra Cement's annualized net income for the quarter that ended in Jun. 2024 was ₹394 Mil. Saurashtra Cement's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was ₹9,277 Mil. Therefore, Saurashtra Cement's annualized ROE % for the quarter that ended in Jun. 2024 was 4.25%.

The historical rank and industry rank for Saurashtra Cement's ROE % or its related term are showing as below:

BOM:502175' s ROE % Range Over the Past 10 Years
Min: -2.46   Med: 9.7   Max: 33.4
Current: 6.02

During the past 13 years, Saurashtra Cement's highest ROE % was 33.40%. The lowest was -2.46%. And the median was 9.70%.

BOM:502175's ROE % is ranked worse than
50.39% of 383 companies
in the Building Materials industry
Industry Median: 6.09 vs BOM:502175: 6.02

Saurashtra Cement ROE % Historical Data

The historical data trend for Saurashtra Cement's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Saurashtra Cement ROE % Chart

Saurashtra Cement Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.15 14.85 3.24 -2.46 6.25

Saurashtra Cement Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.54 0.33 5.62 13.40 4.25

Competitive Comparison of Saurashtra Cement's ROE %

For the Building Materials subindustry, Saurashtra Cement's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Saurashtra Cement's ROE % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Saurashtra Cement's ROE % distribution charts can be found below:

* The bar in red indicates where Saurashtra Cement's ROE % falls into.



Saurashtra Cement ROE % Calculation

Saurashtra Cement's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=565.954/( (8821.693+9277.455)/ 2 )
=565.954/9049.574
=6.25 %

Saurashtra Cement's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=394.476/( (9277.455+0)/ 1 )
=394.476/9277.455
=4.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Saurashtra Cement  (BOM:502175) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=394.476/9277.455
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(394.476 / 15431.824)*(15431.824 / 15710.095)*(15710.095 / 9277.455)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.56 %*0.9823*1.6934
=ROA %*Equity Multiplier
=2.51 %*1.6934
=4.25 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=394.476/9277.455
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (394.476 / 589.696) * (589.696 / 513) * (513 / 15431.824) * (15431.824 / 15710.095) * (15710.095 / 9277.455)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6689 * 1.1495 * 3.32 % * 0.9823 * 1.6934
=4.25 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Saurashtra Cement ROE % Related Terms

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Saurashtra Cement Business Description

Traded in Other Exchanges
Address
Babubhai Chinai Marg, N. K. Mehta International House, Agrima Business Centre, 2nd Floor, 178, Backbay Reclamation, Mumbai, MH, IND, 400 020
Saurashtra Cement Ltd is a cement and clinker manufacturing company based in India. The company manufactures cement under the brand name HATHI. The firm generates maximum revenue from India. Majority of its revenue comes from the sales of the cement product. The Company operates in two reportable segment i.e. manufacture of Cement and Clinker and Paints. The company makes majority of its revenue from Cement and Clinker segment.

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