JBM AUTO. 2020-21 Annual Report Analysis

Wed, 31 Mar

JBM AUTO. 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.

JBM AUTO. Income Statement Analysis

• Operating income during the year rose 1.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY21 as against 11.8% in FY20.
• Depreciation charges increased by 2.5% and finance costs decreased by 13.8% YoY, respectively.
• Other income declined by 22.3% YoY.
• Net profit for the year declined by 18.6% YoY.
• Net profit margins during the year declined from 3.5% in FY20 to 2.8% in FY21.

JBM AUTO. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	19,467	19,820	1.8%
Other income	Rs m	154	120	-22.3%
Total Revenues	Rs m	19,621	19,940	1.6%
Gross profit	Rs m	2,302	2,041	-11.3%
Depreciation	Rs m	739	757	2.5%
Interest	Rs m	643	554	-13.8%
Profit before tax	Rs m	1,075	850	-20.9%
Tax	Rs m	384	288	-25.2%
Profit after tax	Rs m	690	562	-18.6%
Gross profit margin	%	11.8	10.3
Effective tax rate	%	35.8	33.8
Net profit margin	%	3.5	2.8

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JBM AUTO. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 14 billion as compared to Rs 10 billion in FY20, thereby witnessing an increase of 37.2%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 16.0%.
• Current assets rose 17% and stood at Rs 11 billion, while fixed assets rose 28% and stood at Rs 13 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 20 billion during FY20, thereby witnessing a growth of 23%.

JBM AUTO. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,035	7,456	6.0
Current Liabilities	Rs m	9,996	13,718	37.2
Long-term Debt	Rs m	1,967	2,282	16.0
Total Liabilities	Rs m	20,090	24,640	22.6
Current assets	Rs m	9,617	11,219	16.7
Fixed Assets	Rs m	10,473	13,421	28.1
Total Assets	Rs m	20,090	24,640	22.6

JBM AUTO. Cash Flow Statement Analysis

• JBM AUTO.'s cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 194.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 159% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -70 million from the Rs 111 million net cash flows seen during FY20.

JBM AUTO. 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	3,698	2,159	-41.6%
Cash Flow from Investing Activities	Rs m	-1,230	-3,627	-
Cash Flow from Financing Activities	Rs m	-2,357	1,398	-
Net Cash Flow	Rs m	111	-70	-

Current Valuations for JBM AUTO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an decline from the EPS of Rs 14.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 420.4, stands at 88.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.8 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	411.6	419.0
TTM Earnings per share	Rs	14.6	11.9
Diluted earnings per share	Rs	5.8	4.8
Price to Cash Flow	x	11.4	10.8
TTM P/E ratio	x	26.5	88.4
Price / Book Value ratio	x	1.3	1.9
Market Cap	Rs m	9,311	14,188
Dividends per share (Unadj.)	Rs	0.7	0.6

Ratio Analysis for JBM AUTO.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY21, from 1.0x 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 2.5x during FY21, from 2.7x 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 7.5% during FY21, from 9.8% 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 14.4% during FY21, from 19.1% 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 4.5% during FY21, from 6.6% 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	1.0	0.8
Debtors’ Days	Days	927	913
Interest coverage	x	2.7	2.5
Debt to equity ratio	x	0.3	0.3
Return on assets	%	6.6	4.5
Return on equity	%	9.8	7.5
Return on capital employed	%	19.1	14.4

To see how JBM AUTO. has performed over the last 5 years, please visit here.

JBM AUTO. Share Price Performance

Over the last one year, JBM AUTO. share price has moved up from Rs 138.4 to Rs 420.4, registering a gain of Rs 282.0 or around 203.8%.

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

(To know more, check out historical annual results for JBM AUTO. and quarterly results for JBM AUTO.)

Read: Latest Annual Report Analysis of JBM AUTO.