JBM AUTO. 2021-22 Annual Report Analysis

Sat, 17 Sep

JBM AUTO. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JBM AUTO. Income Statement Analysis

• Operating income during the year rose 61.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY22 as against 9.9% in FY21.
• Depreciation charges increased by 20.7% and finance costs increased by 36.7% YoY, respectively.
• Other income grew by 75.4% YoY.
• Net profit for the year grew by 217.2% YoY.
• Net profit margins during the year grew from 2.5% in FY21 to 4.9% in FY22.

JBM AUTO. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	19,820	31,930	61.1%
Other income	Rs m	120	210	75.4%
Total Revenues	Rs m	19,940	32,140	61.2%
Gross profit	Rs m	1,972	3,332	69.0%
Depreciation	Rs m	757	914	20.7%
Interest	Rs m	554	757	36.7%
Profit before tax	Rs m	781	1,870	139.6%
Tax	Rs m	288	307	6.6%
Profit after tax	Rs m	493	1,564	217.2%
Gross profit margin	%	9.9	10.4
Effective tax rate	%	36.8	16.4
Net profit margin	%	2.5	4.9

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JBM AUTO. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 17 billion as compared to Rs 14 billion in FY21, thereby witnessing an increase of 25.6%.
• Long-term debt stood at Rs 5 billion as compared to Rs 2 billion during FY21, a growth of 125.0%.
• Current assets rose 51% and stood at Rs 17 billion, while fixed assets rose 14% and stood at Rs 15 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 32 billion as against Rs 25 billion during FY21, thereby witnessing a growth of 31%.

JBM AUTO. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,456	8,962	20.2
Current Liabilities	Rs m	13,718	17,231	25.6
Long-term Debt	Rs m	2,127	4,785	125.0
Total Liabilities	Rs m	24,640	32,288	31.0
Current assets	Rs m	11,219	16,961	51.2
Fixed Assets	Rs m	13,421	15,327	14.2
Total Assets	Rs m	24,640	32,288	31.0

JBM AUTO. Cash Flow Statement Analysis

• JBM AUTO.'s cash flow from operating activities (CFO) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 billion, an improvement of 225% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 164 million from the Rs -70 million net cash flows seen during FY21.

JBM AUTO. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,159	-1,419	-
Cash Flow from Investing Activities	Rs m	-3,627	-2,954	-
Cash Flow from Financing Activities	Rs m	1,398	4,537	224.6%
Net Cash Flow	Rs m	-70	164	-

Current Valuations for JBM AUTO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an improvement from the EPS of Rs 10.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 397.9, stands at 26.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 48.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	419.0	270.0
TTM Earnings per share	Rs	10.4	13.2
Diluted earnings per share	Rs	4.2	13.2
Price to Cash Flow	x	39.8	48.4
TTM P/E ratio	x	88.4	26.2
Price / Book Value ratio	x	1.9	13.4
Market Cap	Rs m	14,188	119,840
Dividends per share (Unadj.)	Rs	0.6	1.0

Ratio Analysis for JBM AUTO.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 0.8x during FY21. 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 3.5x during FY22, from 2.4x during FY21. 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 17.4% during FY22, from 6.6% during FY22. 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 19.1% during FY22, from 13.9% during FY21. 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 7.2% during FY22, from 4.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.8	1.0
Debtors’ Days	Days	913	663
Interest coverage	x	2.4	3.5
Debt to equity ratio	x	0.3	0.5
Return on assets	%	4.2	7.2
Return on equity	%	6.6	17.4
Return on capital employed	%	13.9	19.1

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 down from Rs 454.3 to Rs 397.9, registering a loss of Rs 56.5 or around 12.4%.

Overall, the S&P BSE SENSEX is up 0.2% 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.