JAGRAN PRAKASHAN 2021-22 Annual Report Analysis

Fri, 5 Aug

JAGRAN PRAKASHAN has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JAGRAN PRAKASHAN Income Statement Analysis

• Operating income during the year rose 8.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.6% in FY22 as against 16.2% in FY21.
• Depreciation charges decreased by 53.2% and finance costs decreased by 17.8% YoY, respectively.
• Other income declined by 10.9% YoY.
• Net profit for the year grew by 218.0% YoY.
• Net profit margins during the year grew from 6.1% in FY21 to 17.7% in FY22.

JAGRAN PRAKASHAN Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,892	14,012	8.7%
Other income	Rs m	599	534	-10.9%
Total Revenues	Rs m	13,491	14,546	7.8%
Gross profit	Rs m	2,093	3,593	71.7%
Depreciation	Rs m	1,286	602	-53.2%
Interest	Rs m	336	276	-17.8%
Profit before tax	Rs m	1,070	3,249	203.8%
Tax	Rs m	289	766	165.4%
Profit after tax	Rs m	781	2,483	218.0%
Gross profit margin	%	16.2	25.6
Effective tax rate	%	27.0	23.6
Net profit margin	%	6.1	17.7

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JAGRAN PRAKASHAN Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 5.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 4.9%.
• Current assets fell 20% and stood at Rs 8 billion, while fixed assets fell 18% and stood at Rs 17 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 25 billion as against Rs 30 billion during FY21, thereby witnessing a fall of 18%.

JAGRAN PRAKASHAN Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	19,953	16,620	-16.7
Current Liabilities	Rs m	3,823	4,035	5.5
Long-term Debt	Rs m	2,623	2,494	-4.9
Total Liabilities	Rs m	30,158	24,637	-18.3
Current assets	Rs m	9,990	8,037	-19.5
Fixed Assets	Rs m	20,168	16,600	-17.7
Total Assets	Rs m	30,158	24,637	-18.3

JAGRAN PRAKASHAN Cash Flow Statement Analysis

• JAGRAN PRAKASHAN's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -26 million from the Rs 149 million net cash flows seen during FY21.

JAGRAN PRAKASHAN Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	3,483	3,036	-12.8%
Cash Flow from Investing Activities	Rs m	-3,316	-1,936	-
Cash Flow from Financing Activities	Rs m	-18	-1,126	-
Net Cash Flow	Rs m	149	-26	-

Current Valuations for JAGRAN PRAKASHAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 58.0, stands at 7.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	46.3	53.1
TTM Earnings per share	Rs	2.8	9.4
Diluted earnings per share	Rs	3.0	9.4
Price to Cash Flow	x	7.5	5.6
TTM P/E ratio	x	19.8	7.1
Price / Book Value ratio	x	0.7	1.0
Market Cap	Rs m	13,527	17,421
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAGRAN PRAKASHAN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.6x during FY21. 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 12.8x during FY22, from 4.2x during FY21. 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 14.9% during FY22, from 3.9% during FY22. 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 18.4% during FY22, from 6.2% during FY21. 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 FY22, from 3.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.6	2.0
Debtors’ Days	Days	1,223	880
Interest coverage	x	4.2	12.8
Debt to equity ratio	x	0.1	0.2
Return on assets	%	3.7	11.2
Return on equity	%	3.9	14.9
Return on capital employed	%	6.2	18.4

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 66.1 to Rs 58.0, registering a loss of Rs 8.1 or around 12.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,863.2 (up 1.0%). Over the last one year it has moved up from 13,861.9 to 13,863.2, a gain of 1 points (up 0.0%).

Overall, the S&P BSE SENSEX is up 8.7% 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