J.B.CHEMICALS 2017-18 Annual Report Analysis

Sat, 31 Mar

J.B.CHEMICALS 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.

J.B.CHEMICALS Income Statement Analysis

• Operating income during the year rose 3.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY18 as against 16.7% in FY17.
• Depreciation charges increased by 20.6% and finance costs decreased by 35.0% YoY, respectively.
• Other income grew by 2.8% YoY.
• Net profit for the year declined by 24.8% YoY.
• Net profit margins during the year declined from 13.5% in FY17 to 9.8% in FY18.

J.B.CHEMICALS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	13,683	14,138	3.3%
Other income	Rs m	538	553	2.8%
Total Revenues	Rs m	14,221	14,691	3.3%
Gross profit	Rs m	2,288	1,991	-13.0%
Depreciation	Rs m	472	570	20.6%
Interest	Rs m	54	35	-35.0%
Profit before tax	Rs m	2,299	1,940	-15.7%
Tax	Rs m	455	552	21.3%
Profit after tax	Rs m	1,844	1,387	-24.8%
Gross profit margin	%	16.7	14.1
Effective tax rate	%	19.8	28.5
Net profit margin	%	13.5	9.8

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J.B.CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 7 billion as compared to Rs 7 billion in FY17, thereby witnessing an increase of 6.2%.
• Current assets rose 25% and stood at Rs 15 billion, while fixed assets fell 18% and stood at Rs 7 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 22 billion as against Rs 21 billion during FY17, thereby witnessing a growth of 7%.

J.B.CHEMICALS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	13,637	14,416	5.7
Current Liabilities	Rs m	6,935	7,365	6.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,863	22,265	6.7
Current assets	Rs m	12,071	15,086	25.0
Fixed Assets	Rs m	8,791	7,179	-18.3
Total Assets	Rs m	20,863	22,265	6.7

J.B.CHEMICALS Cash Flow Statement Analysis

• J.B.CHEMICALS's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -207 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -595 million, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 427 million from the Rs -280 million net cash flows seen during FY17.

J.B.CHEMICALS 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	2,011	1,229	-38.9%
Cash Flow from Investing Activities	Rs m	-453	-207	-
Cash Flow from Financing Activities	Rs m	-1,838	-595	-
Net Cash Flow	Rs m	-280	427	-

Current Valuations for J.B.CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an decline from the EPS of Rs 21.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 309.2, stands at 18.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 13.2 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	161.3	169.2
TTM Earnings per share	Rs	21.7	16.6
Diluted earnings per share	Rs	23.9	17.9
Price to Cash Flow	x	11.6	13.2
TTM P/E ratio	x	15.5	18.7
Price / Book Value ratio	x	2.0	1.8
Market Cap	Rs m	26,913	25,825
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for J.B.CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 1.7x 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 improved and stood at 56.5x during FY18, from 43.8x 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 declined and down at 9.6% during FY18, from 13.5% 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 declined and down at 13.7% during FY18, from 17.3% 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 declined and down at 6.4% during FY18, from 9.1% 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	1.7	2.0
Debtors’ Days	Days	709	776
Interest coverage	x	43.8	56.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.1	6.4
Return on equity	%	13.5	9.6
Return on capital employed	%	17.3	13.7

To see how J.B.CHEMICALS has performed over the last 5 years, please visit here.

J.B.CHEMICALS Share Price Performance

Over the last one year, J.B.CHEMICALS share price has moved down from Rs 347.0 to Rs 309.2, registering a loss of Rs 37.8 or around 10.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for J.B.CHEMICALS and quarterly results for J.B.CHEMICALS)

Read: Latest Annual Report Analysis of J.B.CHEMICALS