JBM AUTO. 2022-23 Annual Report Analysis

Fri, 1 Sep

JBM AUTO. 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.

JBM AUTO. Income Statement Analysis

• Operating income during the year rose 20.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY23 as against 10.4% in FY22.
• Depreciation charges increased by 42.5% and finance costs increased by 66.1% YoY, respectively.
• Other income grew by 28.7% YoY.
• Net profit for the year declined by 20.0% YoY.
• Net profit margins during the year declined from 4.9% in FY22 to 3.2% in FY23.

JBM AUTO. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	31,930	38,574	20.8%
Other income	Rs m	210	270	28.7%
Total Revenues	Rs m	32,140	38,844	20.9%
Gross profit	Rs m	3,332	3,986	19.6%
Depreciation	Rs m	914	1,303	42.5%
Interest	Rs m	757	1,257	66.1%
Profit before tax	Rs m	1,870	1,695	-9.4%
Tax	Rs m	307	444	44.8%
Profit after tax	Rs m	1,564	1,251	-20.0%
Gross profit margin	%	10.4	10.3
Effective tax rate	%	16.4	26.2
Net profit margin	%	4.9	3.2

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JBM AUTO. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 17 billion as compared to Rs 17 billion in FY22, thereby witnessing an increase of 0.8%.
• Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY22, a growth of 32.1%.
• Current assets fell 7% and stood at Rs 16 billion, while fixed assets rose 28% and stood at Rs 20 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 35 billion as against Rs 32 billion during FY22, thereby witnessing a growth of 10%.

JBM AUTO. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,962	10,298	14.9
Current Liabilities	Rs m	17,231	17,367	0.8
Long-term Debt	Rs m	4,785	6,323	32.1
Total Liabilities	Rs m	32,288	35,378	9.6
Current assets	Rs m	16,961	15,705	-7.4
Fixed Assets	Rs m	15,327	19,673	28.4
Total Assets	Rs m	32,288	35,378	9.6

JBM AUTO. Cash Flow Statement Analysis

• JBM AUTO.'s cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion, an improvement of 118.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -23 million from the Rs 164 million net cash flows seen during FY22.

JBM AUTO. 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	-1,419	4,841	-
Cash Flow from Investing Activities	Rs m	-2,954	-6,456	-
Cash Flow from Financing Activities	Rs m	4,537	1,591	-64.9%
Net Cash Flow	Rs m	164	-23	-

Current Valuations for JBM AUTO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an decline from the EPS of Rs 13.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,501.1, stands at 136.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.2 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 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	270.0	326.2
TTM Earnings per share	Rs	13.2	10.6
Diluted earnings per share	Rs	13.2	10.6
Price to Cash Flow	x	20.9	23.9
TTM P/E ratio	x	31.1	136.3
Price / Book Value ratio	x	13.4	5.9
Market Cap	Rs m	119,840	61,175
Dividends per share (Unadj.)	Rs	1.0	1.3

Ratio Analysis for JBM AUTO.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.0x 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 2.3x during FY23, from 3.5x 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 12.2% during FY23, from 17.4% 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 17.8% during FY23, from 19.1% 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 7.1% during FY23, from 7.2% 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	1.0	0.9
Debtors’ Days	Days	663	444
Interest coverage	x	3.5	2.3
Debt to equity ratio	x	0.5	0.6
Return on assets	%	7.2	7.1
Return on equity	%	17.4	12.2
Return on capital employed	%	19.1	17.8

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 410.1 to Rs 1,501.1, registering a gain of Rs 1,091.1 or around 266.1%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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