JAGRAN PRAKASHAN 2020-21 Annual Report Analysis

Wed, 31 Mar

JAGRAN PRAKASHAN 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.

JAGRAN PRAKASHAN Income Statement Analysis

• Operating income during the year fell 38.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.2% in FY21 as against 20.3% in FY20.
• Depreciation charges decreased by 11.8% and finance costs increased by 0.8% YoY, respectively.
• Other income grew by 53.4% YoY.
• Net profit for the year declined by 72.2% YoY.
• Net profit margins during the year declined from 13.4% in FY20 to 6.1% in FY21.

JAGRAN PRAKASHAN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,973	12,892	-38.5%
Other income	Rs m	390	599	53.4%
Total Revenues	Rs m	21,363	13,491	-36.9%
Gross profit	Rs m	4,258	2,093	-50.9%
Depreciation	Rs m	1,458	1,286	-11.8%
Interest	Rs m	333	336	0.8%
Profit before tax	Rs m	2,858	1,070	-62.6%
Tax	Rs m	49	289	490.2%
Profit after tax	Rs m	2,809	781	-72.2%
Gross profit margin	%	20.3	16.2
Effective tax rate	%	1.7	27.0
Net profit margin	%	13.4	6.1

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JAGRAN PRAKASHAN Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -34.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets fell 19% and stood at Rs 10 billion, while fixed assets rose 12% and stood at Rs 20 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 30 billion as against Rs 30 billion during FY20, thereby witnessing a fall of 0%.

JAGRAN PRAKASHAN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	19,185	19,953	4.0
Current Liabilities	Rs m	5,813	3,823	-34.2
Long-term Debt	Rs m	0	2,623	0.0
Total Liabilities	Rs m	30,298	30,158	-0.5
Current assets	Rs m	12,294	9,990	-18.7
Fixed Assets	Rs m	18,004	20,168	12.0
Total Assets	Rs m	30,298	30,158	-0.5

JAGRAN PRAKASHAN Cash Flow Statement Analysis

• JAGRAN PRAKASHAN's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -18 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 149 million from the Rs -213 million net cash flows seen during FY20.

JAGRAN PRAKASHAN 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	4,041	3,483	-13.8%
Cash Flow from Investing Activities	Rs m	371	-3,316	-
Cash Flow from Financing Activities	Rs m	-4,624	-18	-
Net Cash Flow	Rs m	-213	149	-

Current Valuations for JAGRAN PRAKASHAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 58.7, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	74.6	46.3
TTM Earnings per share	Rs	10.0	2.8
Diluted earnings per share	Rs	10.7	3.0
Price to Cash Flow	x	2.8	6.5
TTM P/E ratio	x	4.3	19.8
Price / Book Value ratio	x	1.2	0.7
Market Cap	Rs m	22,665	13,527
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAGRAN PRAKASHAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 2.1x 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 deteriorated and stood at 4.2x during FY21, from 9.6x 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 declined and down at 3.9% during FY21, from 14.6% 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 declined and down at 6.2% during FY21, from 16.6% 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 declined and down at 3.7% during FY21, from 10.4% 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	2.1	2.6
Debtors’ Days	Days	980	1,223
Interest coverage	x	9.6	4.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	10.4	3.7
Return on equity	%	14.6	3.9
Return on capital employed	%	16.6	6.2

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 up from Rs 45.6 to Rs 58.7, registering a gain of Rs 13.1 or around 28.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

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

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

Read: Latest Annual Report Analysis of JAGRAN PRAKASHAN