JAI BALAJI INDUS 2022-23 Annual Report Analysis

Fri, 31 Mar

JAI BALAJI INDUS 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.

JAI BALAJI INDUS Income Statement Analysis

• Operating income during the year rose 30.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY23 as against 4.4% in FY22.
• Depreciation charges increased by 7.2% and finance costs decreased by 10.0% YoY, respectively.
• Other income grew by 18.8% YoY.
• Net profit for the year grew by 20.3% YoY.
• Net profit margins during the year declined from 1.0% in FY22 to 0.9% in FY23.

JAI BALAJI INDUS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	46,925	61,251	30.5%
Other income	Rs m	299	355	18.8%
Total Revenues	Rs m	47,224	61,606	30.5%
Gross profit	Rs m	2,083	2,563	23.0%
Depreciation	Rs m	913	979	7.2%
Interest	Rs m	988	889	-10.0%
Profit before tax	Rs m	481	1,049	118.3%
Tax	Rs m	0	471	0.0
Profit after tax	Rs m	481	578	20.3%
Gross profit margin	%	4.4	4.2
Effective tax rate	%	0.0	44.9
Net profit margin	%	1.0	0.9

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JAI BALAJI INDUS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 17 billion as compared to Rs 40 billion in FY22, thereby witnessing an decrease of -56.8%.
• Long-term debt stood at Rs 6 billion as compared to Rs 6 billion during FY22, a growth of 6.8%.
• Current assets rose 2% and stood at Rs 14 billion, while fixed assets fell 3% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 27 billion during FY22, thereby witnessing a fall of 0%.

JAI BALAJI INDUS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-16,628	5,118	NA
Current Liabilities	Rs m	40,453	17,480	-56.8
Long-term Debt	Rs m	5,861	6,260	6.8
Total Liabilities	Rs m	26,783	26,690	-0.3
Current assets	Rs m	13,389	13,715	2.4
Fixed Assets	Rs m	13,394	12,975	-3.1
Total Assets	Rs m	26,783	26,690	-0.3

JAI BALAJI INDUS Cash Flow Statement Analysis

• JAI BALAJI INDUS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 113 million from the Rs -124 million net cash flows seen during FY22.

JAI BALAJI INDUS 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	4,627	3,209	-30.7%
Cash Flow from Investing Activities	Rs m	-1,244	-1,176	-
Cash Flow from Financing Activities	Rs m	-3,508	-1,921	-
Net Cash Flow	Rs m	-124	113	-

Current Valuations for JAI BALAJI INDUS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an decline from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.5, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.6 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	424.9	421.1
TTM Earnings per share	Rs	4.4	4.0
Diluted earnings per share	Rs	3.0	3.6
Price to Cash Flow	x	5.0	4.6
TTM P/E ratio	x	14.6	12.6
Price / Book Value ratio	x	-0.4	1.4
Market Cap	Rs m	5,832	7,236
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAI BALAJI INDUS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.3x 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 improved and stood at 2.2x during FY23, from 1.5x 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 improved and stood at 11.3% during FY23, from -2.9% 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 improved and stood at 17.0% during FY23, from -13.6% 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 improved and stood at 5.5% during FY23, from 5.5% 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	0.3	0.8
Debtors’ Days	Days	121	137
Interest coverage	x	1.5	2.2
Debt to equity ratio	x	-0.4	1.2
Return on assets	%	5.5	5.5
Return on equity	%	-2.9	11.3
Return on capital employed	%	-13.6	17.0

To see how JAI BALAJI INDUS has performed over the last 5 years, please visit here.

JAI BALAJI INDUS Share Price Performance

Over the last one year, JAI BALAJI INDUS share price has moved up from Rs 43.8 to Rs 45.5, registering a gain of Rs 1.8 or around 4.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved down from 22,368.3 to 19,184.9, a loss of 3,183 points (down 14.2%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for JAI BALAJI INDUS and quarterly results for JAI BALAJI INDUS)