JAGRAN PRAKASHAN 2019-20 Annual Report Analysis

Fri, 8 Jan

JAGRAN PRAKASHAN has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

JAGRAN PRAKASHAN Income Statement Analysis

• Operating income during the year fell 11.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.6% in FY20 as against 22.6% in FY19.
• Depreciation charges increased by 13.9% and finance costs increased by 29.0% YoY, respectively.
• Other income declined by 20.9% YoY.
• Net profit for the year grew by 2.4% YoY.
• Net profit margins during the year grew from 11.4% in FY19 to 13.2% in FY20.

JAGRAN PRAKASHAN Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	23,627	20,973	-11.2%
Other income	Rs m	408	323	-20.9%
Total Revenues	Rs m	24,034	21,296	-11.4%
Gross profit	Rs m	5,337	4,326	-18.9%
Depreciation	Rs m	1,279	1,458	13.9%
Interest	Rs m	259	333	29.0%
Profit before tax	Rs m	4,207	2,858	-32.1%
Tax	Rs m	1,470	49	-96.7%
Profit after tax	Rs m	2,742	2,809	2.4%
Gross profit margin	%	22.6	20.6
Effective tax rate	%	34.9	1.7
Net profit margin	%	11.4	13.2

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JAGRAN PRAKASHAN Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 6 billion as compared to Rs 7 billion in FY19, thereby witnessing an decrease of -18.4%.
• Current assets rose 0% and stood at Rs 12 billion, while fixed assets fell 3% and stood at Rs 15 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 30 billion as against Rs 31 billion during FY19, thereby witnessing a fall of 5%.

JAGRAN PRAKASHAN Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	21,017	21,485	2.2
Current Liabilities	Rs m	7,102	5,793	-18.4
Long-term Debt	Rs m	386	0	-100.0
Total Liabilities	Rs m	31,016	29,509	-4.9
Current assets	Rs m	12,224	12,273	0.4
Fixed Assets	Rs m	15,085	14,687	-2.6
Total Assets	Rs m	31,016	29,509	-4.9

JAGRAN PRAKASHAN Cash Flow Statement Analysis

• JAGRAN PRAKASHAN's cash flow from operating activities (CFO) during FY20 stood at Rs 4 billion, an improvement of 42.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs 371 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -213 million from the Rs 24 million net cash flows seen during FY19.

JAGRAN PRAKASHAN Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	2,846	4,041	42.0%
Cash Flow from Investing Activities	Rs m	-577	371	-
Cash Flow from Financing Activities	Rs m	-2,245	-4,624	-
Net Cash Flow	Rs m	24	-213	-

Current Valuations for JAGRAN PRAKASHAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an improvement from the EPS of Rs 9.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.8, stands at 8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 3.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	79.7	74.6
TTM Earnings per share	Rs	9.3	10.0
Diluted earnings per share	Rs	8.3	8.5
Price to Cash Flow	x	3.4	3.6
TTM P/E ratio	x	7.9	8.9
Price / Book Value ratio	x	1.9	1.1
Market Cap	Rs m	13,576	15,201
Dividends per share (Unadj.)	Rs	3.5	0.0

Ratio Analysis for JAGRAN PRAKASHAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY20, from 1.7x during FY19. 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 9.6x during FY20, from 17.3x during FY19. 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 13.1% during FY20, from 13.0% during FY20. 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 14.9% during FY20, from 20.9% during FY19. 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 10.6% during FY20, from 9.7% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.7	2.1
Debtors’ Days	Days	98	98
Interest coverage	x	17.3	9.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	10.6
Return on equity	%	13.0	13.1
Return on capital employed	%	20.9	14.9

To see how JAGRAN PRAKASHAN has performed over the last 5 years, please visit here.

JAGRAN PRAKASHAN Share Price Performance

Over the last one year, JAGRAN PRAKASHAN share price has moved down from Rs 62.5 to Rs 45.8, registering a loss of Rs 16.7 or around 26.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,721.0 (up 2.1%). Over the last one year it has moved up from 7,781.3 to 11,721.0, a gain of 3,940 points (up 50.6%).

Overall, the S&P BSE SENSEX is up 19.2% over the year.

(To know more, check out historical annual results for JAGRAN PRAKASHAN and quarterly results for JAGRAN PRAKASHAN)