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J.B.CHEMICALS 2020-21 Annual Report Analysis
Wed, 31 Mar

J.B.CHEMICALS 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.

J.B.CHEMICALS Income Statement Analysis

  • Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 51.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.2% in FY21 as against 20.7% in FY20.
  • Depreciation charges increased by 3.5% and finance costs increased by 122.3% YoY, respectively.
  • Other income grew by 129.1% YoY.
  • Net profit for the year grew by 64.7% YoY.
  • Net profit margins during the year grew from 15.3% in FY20 to 22.0% in FY21.

J.B.CHEMICALS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 17,747 20,425 15.1%
Other income Rs m 509 1,166 129.1%
Total Revenues Rs m 18,256 21,591 18.3%
Gross profit Rs m 3,676 5,562 51.3%
Depreciation Rs m 663 687 3.5%
Interest Rs m 33 72 122.3%
Profit before tax Rs m 3,489 5,969 71.1%
Tax Rs m 765 1,484 93.9%
Profit after tax Rs m 2,724 4,485 64.7%
Gross profit margin % 20.7 27.2
Effective tax rate % 21.9 24.9
Net profit margin % 15.3 22.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

J.B.CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 33.0%.
  • Current assets rose 48% and stood at Rs 19 billion, while fixed assets fell 8% and stood at Rs 7 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 26 billion as against Rs 20 billion during FY20, thereby witnessing a growth of 28%.

J.B.CHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 14,355 18,097 26.1
 
Current Liabilities Rs m 5,162 6,866 33.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 20,169 25,725 27.5
 
Current assets Rs m 12,761 18,939 48.4
Fixed Assets Rs m 7,408 6,786 -8.4
Total Assets Rs m 20,169 25,725 27.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



J.B.CHEMICALS Cash Flow Statement Analysis

  • J.B.CHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 14.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -874 million, an improvement of 71% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -33 million from the Rs -64 million net cash flows seen during FY20.

J.B.CHEMICALS 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 2,757 3,148 14.2%
Cash Flow from Investing Activities Rs m 239 -2,307 -
Cash Flow from Financing Activities Rs m -3,061 -874 -
Net Cash Flow Rs m -64 -33 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for J.B.CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.0, an improvement from the EPS of Rs 35.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,253.6, stands at 21.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 4.7 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-20* 12 Mar-21*
Sales per share (Unadj.) Rs 229.6 264.3
TTM Earnings per share Rs 35.2 58.0
Diluted earnings per share Rs 35.2 58.0
Price to Cash Flow x 11.6 13.2
TTM P/E ratio x 14.4 21.6
Price / Book Value ratio x 2.4 3.8
Market Cap Rs m 35,009 68,043
Dividends per share (Unadj.) Rs 11.0 16.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for J.B.CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.8x during FY21, from 2.5x 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 83.4x during FY21, from 108.1x 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 24.8% during FY21, from 19.0% 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 33.4% during FY21, from 24.5% 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 17.7% during FY21, from 13.7% 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 2.5 2.8
Debtors’ Days Days 710 695
Interest coverage x 108.1 83.4
Debt to equity ratio x 0.0 0.0
Return on assets % 13.7 17.7
Return on equity % 19.0 24.8
Return on capital employed % 24.5 33.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 up from Rs 508.4 to Rs 1,253.6, registering a gain of Rs 745.3 or around 146.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

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

Annual Report FAQs

What is the current share price of J.B.CHEMICALS?

J.B.CHEMICALS currently trades at Rs 1,649.5 per share. You can check out the latest share price performance of J.B.CHEMICALS here...

What was the revenue of J.B.CHEMICALS in FY21? How does it compare to earlier years?

The revenues of J.B.CHEMICALS stood at Rs 21,591 m in FY21, which was up 18.3% compared to Rs 18,256 m reported in FY20.

J.B.CHEMICALS' revenue has grown from Rs 14,221 m in FY17 to Rs 21,591 m in FY21.

Over the past 5 years, the revenue of J.B.CHEMICALS has grown at a CAGR of 11.0%.

What was the net profit of J.B.CHEMICALS in FY21? How does it compare to earlier years?

The net profit of J.B.CHEMICALS stood at Rs 4,485 m in FY21, which was up 64.7% compared to Rs 2,724 m reported in FY20.

This compares to a net profit of Rs 1,940 m in FY19 and a net profit of Rs 1,387 m in FY18.

Over the past 5 years, J.B.CHEMICALS net profit has grown at a CAGR of 24.9%.

What does the cash flow statement of J.B.CHEMICALS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of J.B.CHEMICALS reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 3,148 m as compared to Rs 2,757 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,307 m as compared to Rs 239 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -874 m as compared to Rs -3,061 m in FY20.

Here's the cash flow statement of J.B.CHEMICALS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations2,0111,2291,9432,7573,148
From Investments-453-207-277239-2,307
From Financial Activity-1,838-595-1,557-3,061-874
Net Cashflow-280427109-64-33

What does the Key Ratio analysis of J.B.CHEMICALS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of J.B.CHEMICALS reveals:

  • Operating profit margins witnessed a fall and down at 27.2% in FY21 as against 20.7% in FY20.
  • Net profit margins grew from 15.3% in FY20 to 22.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of J.B.CHEMICALS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)16.714.118.620.727.2
Net Profit Margin (%)13.59.811.815.322.0
Debt to Equity Ratio (x)0.00.00.00.00.0

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

 

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