JAI CORP 2020-21 Annual Report Analysis

Wed, 31 Mar

JAI CORP 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.

JAI CORP Income Statement Analysis

• Operating income during the year fell 15.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.7% in FY21 as against 9.5% in FY20.
• Depreciation charges decreased by 14.8% and finance costs decreased by 36.0% YoY, respectively.
• Other income grew by 225.1% YoY.
• Net profit for the year grew by 131.6% YoY.
• Net profit margins during the year grew from 7.2% in FY20 to 19.6% in FY21.

JAI CORP Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,568	4,729	-15.1%
Other income	Rs m	354	1,150	225.1%
Total Revenues	Rs m	5,922	5,879	-0.7%
Gross profit	Rs m	527	457	-13.1%
Depreciation	Rs m	173	147	-14.8%
Interest	Rs m	246	157	-36.0%
Profit before tax	Rs m	462	1,303	182.2%
Tax	Rs m	62	377	508.6%
Profit after tax	Rs m	400	926	131.6%
Gross profit margin	%	9.5	9.7
Effective tax rate	%	13.4	28.9
Net profit margin	%	7.2	19.6

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JAI CORP Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 274 million in FY20, thereby witnessing an increase of 327.3%.
• Current assets fell 1% and stood at Rs 5 billion, while fixed assets fell 5% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 16 billion during FY20, thereby witnessing a fall of 3%.

JAI CORP Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,118	13,947	6.3
Current Liabilities	Rs m	274	1,170	327.3
Long-term Debt	Rs m	2,232	0	-100.0
Total Liabilities	Rs m	15,943	15,391	-3.5
Current assets	Rs m	5,030	5,004	-0.5
Fixed Assets	Rs m	10,913	10,387	-4.8
Total Assets	Rs m	15,943	15,391	-3.5

JAI CORP Cash Flow Statement Analysis

• JAI CORP's cash flow from operating activities (CFO) during FY21 stood at Rs -50 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 2 billion, an improvement of 129.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 71 million from the Rs 0 million net cash flows seen during FY20.

JAI CORP 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	606	-50	-
Cash Flow from Investing Activities	Rs m	743	1,704	129.3%
Cash Flow from Financing Activities	Rs m	-1,348	-1,584	-
Net Cash Flow	Rs m	0	71	21,515.2%

Current Valuations for JAI CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.5, stands at 16.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.0 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	31.2	26.5
TTM Earnings per share	Rs	2.2	5.2
Diluted earnings per share	Rs	2.2	5.2
Price to Cash Flow	x	15.7	13.0
TTM P/E ratio	x	23.3	16.8
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	15,645	13,914
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for JAI CORP

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY21, from 18.4x 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 improved and stood at 9.3x during FY21, from 2.9x 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 improved and stood at 6.6% during FY21, from 3.0% 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 improved and stood at 10.5% during FY21, from 4.6% 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 improved and stood at 7.0% during FY21, from 4.0% 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	18.4	4.3
Debtors’ Days	Days	452	468
Interest coverage	x	2.9	9.3
Debt to equity ratio	x	0.2	0.0
Return on assets	%	4.0	7.0
Return on equity	%	3.0	6.6
Return on capital employed	%	4.6	10.5

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

JAI CORP Share Price Performance

Over the last one year, JAI CORP share price has moved up from Rs 50.6 to Rs 84.5, registering a gain of Rs 33.9 or around 67.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of JAI CORP