JK PAPER 2017-18 Annual Report Analysis

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JK PAPER 2017-18 Annual Report Analysis
Mon, 31 Dec

JK PAPER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JK PAPER Income Statement Analysis

  • Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY18 as against 19.7% in FY17.
  • Depreciation charges increased by 1.4% and finance costs decreased by 23.8% YoY, respectively.
  • Other income declined by 35.3% YoY.
  • Net profit for the year grew by 51.6% YoY.
  • Net profit margins during the year grew from 6.5% in FY17 to 9.1% in FY18.

JK PAPER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 26,286 28,443 8.2%
Other income Rs m 348 225 -35.3%
Total Revenues Rs m 26,634 28,668 7.6%
Gross profit Rs m 5,171 6,183 19.6%
Depreciation Rs m 1,207 1,223 1.4%
Interest Rs m 1,876 1,430 -23.8%
Profit before tax Rs m 2,435 3,754 54.2%
Tax Rs m 690 1,149 66.4%
Profit after tax Rs m 1,718 2,605 51.6%
Gross profit margin % 19.7 21.7
Effective tax rate % 28.3 30.6
Net profit margin % 6.5 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JK PAPER Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 8 billion as compared to Rs 8 billion in FY17, thereby witnessing an decrease of -2.9%.
  • Long-term debt down at Rs 10 billion as compared to Rs 13 billion during FY17, a fall of 25.2%.
  • Current assets rose 1% and stood at Rs 9 billion, while fixed assets fell 0% and stood at Rs 27 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 36 billion as against Rs 36 billion during FY17, thereby witnessing a growth of 0%.

JK PAPER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 13,213 16,458 24.6
 
Current Liabilities Rs m 8,161 7,922 -2.9
Long-term Debt Rs m 12,991 9,715 -25.2
Total Liabilities Rs m 35,956 36,085 0.4
 
Current assets Rs m 8,441 8,524 1.0
Fixed Assets Rs m 27,034 26,908 -0.5
Total Assets Rs m 35,956 36,085 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JK PAPER Cash Flow Statement Analysis

  • JK PAPER's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 403 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 933 million from the Rs 143 million net cash flows seen during FY17.

JK PAPER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 5,647 5,603 -0.8%
Cash Flow from Investing Activities Rs m -2,615 403 -
Cash Flow from Financing Activities Rs m -2,888 -5,073 -
Net Cash Flow Rs m 143 933 551.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JK PAPER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.8, an improvement from the EPS of Rs 11.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 151.9, stands at 7.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 168.5 162.1
TTM Earnings per share Rs 11.0 14.8
Diluted earnings per share Rs 9.8 14.8
Price to Cash Flow x 8.0 7.0
TTM P/E ratio x 6.8 7.7
Price / Book Value ratio x 0.9 1.4
Market Cap Rs m 23,690 26,658
Dividends per share (Unadj.) Rs 1.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JK PAPER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.0x during FY17. 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 3.6x during FY18, from 2.3x during FY17. 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 15.8% during FY18, from 13.0% during FY18. 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 19.8% during FY18, from 16.4% during FY17. 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 11.2% during FY18, from 10.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.0 1.1
Debtors’ Days Days 15 14
Interest coverage x 2.3 3.6
Debt to equity ratio x 1.0 0.6
Return on assets % 10.0 11.2
Return on equity % 13.0 15.8
Return on capital employed % 16.4 19.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how JK PAPER has performed over the last 5 years, please visit here.

JK PAPER Share Price Performance

Over the last one year, JK PAPER share price has moved up from Rs 136.9 to Rs 151.9, registering a gain of Rs 15.1 or around 11.0%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for JK PAPER and quarterly results for JK PAPER)

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Related Views on News

JK PAPER Announces Quarterly Results (3QFY20); Net Profit Up 10.0% (Quarterly Result Update)

Jan 29, 2020 | Updated on Jan 29, 2020

For the quarter ended December 2019, JK PAPER has posted a net profit of Rs 1 bn (up 10.0% YoY). Sales on the other hand came in at Rs 8 bn (down 5.5% YoY). Read on for a complete analysis of JK PAPER's quarterly results.

JK PAPER Announces Quarterly Results (2QFY20); Net Profit Up 21.3% (Quarterly Result Update)

Nov 6, 2019 | Updated on Nov 6, 2019

For the quarter ended September 2019, JK PAPER has posted a net profit of Rs 1 bn (up 21.3% YoY). Sales on the other hand came in at Rs 8 bn (up 0.7% YoY). Read on for a complete analysis of JK PAPER's quarterly results.

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