Ashaka Cement released its Nine Months to september financials with revenues increasing 4% to N16b year on year. Operational profit also rose 50% to N5.2b with the help of other income contributing N1.9b to profit. The company has no debts and so pretax profits was N5.2b. Operating profit margin for the period under review was 32% higher than the 22% posted same time last year.
Returns on Equity was 17% giving shareholders a 5% buffer above inflation. The company is also not lacking on cash sitting on a large cash pile up of N11b. The company’s net operating cash flows dropped 96% to N272m a drop that I believe has more to do with payment of taxes. Taxes liabilities reduced from N1.2b to N164m in just under a year. Share price is currently N18 28.5% higher than the N14 price about a year ago. The current share price is 11times its current earnings and 11.2x its trailing full year earnings. Seems like a good bargain.
Ashaka Cement 9months 2012 Unaudited Accounts s posted on the website of the NSE