JAMNA AUTO 2020-21 Annual Report Analysis

Wed, 31 Mar

JAMNA AUTO has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

JAMNA AUTO Income Statement Analysis

• Operating income during the year fell 4.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.4% in FY21 as against 10.1% in FY20.
• Depreciation charges decreased by 14.0% and finance costs decreased by 59.8% YoY, respectively.
• Other income declined by 39.4% YoY.
• Net profit for the year grew by 52.4% YoY.
• Net profit margins during the year grew from 4.2% in FY20 to 6.8% in FY21.

JAMNA AUTO Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	11,290	10,795	-4.4%
Other income	Rs m	167	101	-39.4%
Total Revenues	Rs m	11,456	10,896	-4.9%
Gross profit	Rs m	1,145	1,337	16.7%
Depreciation	Rs m	414	356	-14.0%
Interest	Rs m	182	73	-59.8%
Profit before tax	Rs m	716	1,009	40.8%
Tax	Rs m	238	279	17.5%
Profit after tax	Rs m	479	730	52.4%
Gross profit margin	%	10.1	12.4
Effective tax rate	%	33.2	27.7
Net profit margin	%	4.2	6.8

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JAMNA AUTO Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 41.8%.
• Current assets rose 49% and stood at Rs 4 billion, while fixed assets fell 6% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 11%.

JAMNA AUTO Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,167	5,793	12.1
Current Liabilities	Rs m	1,831	2,595	41.8
Long-term Debt	Rs m	508	0	-100.0
Total Liabilities	Rs m	7,874	8,765	11.3
Current assets	Rs m	2,437	3,638	49.2
Fixed Assets	Rs m	5,436	5,127	-5.7
Total Assets	Rs m	7,874	8,765	11.3

JAMNA AUTO Cash Flow Statement Analysis

• JAMNA AUTO's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -179 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 373 million from the Rs -186 million net cash flows seen during FY20.

JAMNA AUTO Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-14	2,147	-
Cash Flow from Investing Activities	Rs m	-969	-179	-
Cash Flow from Financing Activities	Rs m	796	-1,595	-
Net Cash Flow	Rs m	-186	373	-

Current Valuations for JAMNA AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an improvement from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 67.9, stands at 37.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 18.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	28.3	27.1
TTM Earnings per share	Rs	1.2	1.8
Diluted earnings per share	Rs	1.2	1.8
Price to Cash Flow	x	10.6	18.1
TTM P/E ratio	x	19.8	37.1
Price / Book Value ratio	x	3.3	3.4
Market Cap	Rs m	16,795	19,683
Dividends per share (Unadj.)	Rs	0.4	0.8

Ratio Analysis for JAMNA AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.3x during FY20. 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 14.8x during FY21, from 4.9x during FY20. 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 12.6% during FY21, from 9.3% during FY21. 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 18.7% during FY21, from 15.8% during FY20. 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 FY21, from 8.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	259	189
Interest coverage	x	4.9	14.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.4	9.2
Return on equity	%	9.3	12.6
Return on capital employed	%	15.8	18.7

To see how JAMNA AUTO has performed over the last 5 years, please visit here.

JAMNA AUTO Share Price Performance

Over the last one year, JAMNA AUTO share price has moved up from Rs 23.8 to Rs 67.9, registering a gain of Rs 44.1 or around 185.3%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for JAMNA AUTO and quarterly results for JAMNA AUTO)

Read: Latest Annual Report Analysis of JAMNA AUTO