J.B.CHEMICALS 2022-23 Annual Report Analysis

Wed, 2 Aug

J.B.CHEMICALS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

J.B.CHEMICALS Income Statement Analysis

• Operating income during the year rose 29.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.1% in FY23 as against 22.4% in FY22.
• Depreciation charges increased by 57.5% and finance costs increased by 604.0% YoY, respectively.
• Other income declined by 75.2% YoY.
• Net profit for the year grew by 6.2% YoY.
• Net profit margins during the year declined from 15.9% in FY22 to 13.0% in FY23.

J.B.CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	24,242	31,493	29.9%
Other income	Rs m	401	99	-75.2%
Total Revenues	Rs m	24,643	31,592	28.2%
Gross profit	Rs m	5,426	6,958	28.2%
Depreciation	Rs m	727	1,144	57.5%
Interest	Rs m	51	361	604.0%
Profit before tax	Rs m	5,049	5,552	10.0%
Tax	Rs m	1,189	1,452	22.2%
Profit after tax	Rs m	3,860	4,100	6.2%
Gross profit margin	%	22.4	22.1
Effective tax rate	%	23.5	26.2
Net profit margin	%	15.9	13.0

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

J.B.CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 37.5%.
• Long-term debt stood at Rs 4 billion as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 21% and stood at Rs 16 billion, while fixed assets rose 43% and stood at Rs 25 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 41 billion as against Rs 31 billion during FY22, thereby witnessing a growth of 34%.

J.B.CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,715	23,587	13.9
Current Liabilities	Rs m	4,552	6,257	37.5
Long-term Debt	Rs m	0	3,832	0.0
Total Liabilities	Rs m	30,691	40,981	33.5
Current assets	Rs m	13,246	15,993	20.7
Fixed Assets	Rs m	17,445	24,988	43.2
Total Assets	Rs m	30,691	40,981	33.5

J.B.CHEMICALS Cash Flow Statement Analysis

• J.B.CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 267.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 358% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 204 million from the Rs 341 million net cash flows seen during FY22.

J.B.CHEMICALS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,701	6,256	267.7%
Cash Flow from Investing Activities	Rs m	23	-9,618	-
Cash Flow from Financing Activities	Rs m	-1,384	3,565	-
Net Cash Flow	Rs m	341	204	-40.2%

Current Valuations for J.B.CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 53.0, an improvement from the EPS of Rs 50.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,554.5, stands at 48.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	313.7	407.0
TTM Earnings per share	Rs	50.0	53.0
Diluted earnings per share	Rs	49.9	53.0
Price to Cash Flow	x	26.6	25.7
TTM P/E ratio	x	31.6	48.2
Price / Book Value ratio	x	6.0	5.7
Market Cap	Rs m	123,307	134,983
Dividends per share (Unadj.)	Rs	16.5	17.8

Ratio Analysis for J.B.CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY23, from 2.9x during FY22. 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 16.4x during FY23, from 99.6x during FY22. 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 17.4% during FY23, from 18.6% during FY23. 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 21.6% during FY23, from 24.6% during FY22. 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 10.9% during FY23, from 12.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.9	2.6
Debtors’ Days	Days	837	667
Interest coverage	x	99.6	16.4
Debt to equity ratio	x	0.0	0.2
Return on assets	%	12.7	10.9
Return on equity	%	18.6	17.4
Return on capital employed	%	24.6	21.6

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 1,769.7 to Rs 2,554.5, registering a gain of Rs 784.9 or around 44.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,485.7 (down 0.6%). Over the last one year it has moved up from 22,962.3 to 27,485.7, a gain of 4,523 points (up 19.7%).

Overall, the S&P BSE SENSEX is up 13.2% over the year.

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