JAI CORP 2022-23 Annual Report Analysis

Mon, 21 Aug

JAI CORP 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 CORP Income Statement Analysis

• Operating income during the year fell 17.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.2% in FY23 as against 8.7% in FY22.
• Depreciation charges decreased by 1.3% and finance costs decreased by 90.3% YoY, respectively.
• Other income grew by 33.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 7.2% in FY22 to 2.3% in FY23.

JAI CORP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,201	5,943	-17.5%
Other income	Rs m	189	251	33.1%
Total Revenues	Rs m	7,390	6,195	-16.2%
Gross profit	Rs m	624	-71	NA
Depreciation	Rs m	131	129	-1.3%
Interest	Rs m	35	3	-90.3%
Profit before tax	Rs m	647	48	-92.6%
Tax	Rs m	131	184	40.6%
Profit after tax	Rs m	517	-136	NA
Gross profit margin	%	8.7	-1.2
Effective tax rate	%	20.2	381.7
Net profit margin	%	7.2	-2.3

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JAI CORP Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 318 million as compared to Rs 348 million in FY22, thereby witnessing an decrease of -8.7%.
• Current assets rose 11% and stood at Rs 5 billion, while fixed assets fell 7% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 15 billion during FY22, thereby witnessing a fall of 2%.

JAI CORP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,507	14,318	-1.3
Current Liabilities	Rs m	348	318	-8.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,087	14,833	-1.7
Current assets	Rs m	4,752	5,277	11.1
Fixed Assets	Rs m	10,282	9,513	-7.5
Total Assets	Rs m	15,087	14,833	-1.7

JAI CORP Cash Flow Statement Analysis

• JAI CORP's cash flow from operating activities (CFO) during FY23 stood at Rs 719 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -602 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -171 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -54 million from the Rs -27 million net cash flows seen during FY22.

JAI CORP 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	912	719	-21.1%
Cash Flow from Investing Activities	Rs m	40	-602	-
Cash Flow from Financing Activities	Rs m	-979	-171	-
Net Cash Flow	Rs m	-27	-54	-

Current Valuations for JAI CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an decline from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 231.6, stands at -322.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at -4,166.5 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	40.4	33.3
TTM Earnings per share	Rs	2.9	-0.8
Diluted earnings per share	Rs	2.9	-0.8
Price to Cash Flow	x	30.1	-4,166.5
TTM P/E ratio	x	44.2	-322.4
Price / Book Value ratio	x	1.6	2.0
Market Cap	Rs m	22,502	27,999
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for JAI CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 16.6x during FY23, from 13.6x 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 15.1x during FY23, from 19.3x 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 -0.9% during FY23, from 3.6% 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 0.4% during FY23, from 4.7% 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 -0.9% during FY23, from 3.7% 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	13.6	16.6
Debtors’ Days	Days	325	322
Interest coverage	x	19.3	15.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	-0.9
Return on equity	%	3.6	-0.9
Return on capital employed	%	4.7	0.4

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 130.4 to Rs 231.6, registering a gain of Rs 101.3 or around 77.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,221.5 (up 1.0%). Over the last one year it has moved up from 18,882.4 to 21,221.5, a gain of 2,339 points (up 12.4%).

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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