JAI CORP 2017-18 Annual Report Analysis

Sat, 31 Mar

JAI CORP has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JAI CORP Income Statement Analysis

• Operating income during the year fell 9.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY18 as against 13.6% in FY17.
• Depreciation charges increased by 10.0% and finance costs decreased by 32.7% YoY, respectively.
• Other income grew by 26.2% YoY.
• Net profit for the year declined by 180.5% YoY.
• Net profit margins during the year grew from 1.5% in FY17 to 1.4% in FY18.

JAI CORP Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	6,401	5,794	-9.5%
Other income	Rs m	207	262	26.2%
Total Revenues	Rs m	6,608	6,056	-8.4%
Gross profit	Rs m	873	721	-17.3%
Depreciation	Rs m	167	183	10.0%
Interest	Rs m	779	524	-32.7%
Profit before tax	Rs m	135	275	104.4%
Tax	Rs m	233	196	-15.9%
Profit after tax	Rs m	-98	79	-180.5%
Gross profit margin	%	13.6	12.4
Effective tax rate	%	173.1	71.2
Net profit margin	%	-1.5	1.4

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

JAI CORP Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 287 million as compared to Rs 10 billion in FY17, thereby witnessing an decrease of -97.0%.
• Long-term debt stood at Rs 4 billion as compared to Rs 0 million during FY17, a fall of 0.0%.
• Current assets fell 2% and stood at Rs 7 billion, while fixed assets fell 25% and stood at Rs 12 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 18 billion as against Rs 23 billion during FY17, thereby witnessing a fall of 18%.

JAI CORP Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	12,358	13,551	9.6
Current Liabilities	Rs m	9,514	287	-97.0
Long-term Debt	Rs m	0	3,877	0.0
Total Liabilities	Rs m	22,558	18,399	-18.4
Current assets	Rs m	6,827	6,659	-2.5
Fixed Assets	Rs m	15,728	11,739	-25.4
Total Assets	Rs m	22,558	18,399	-18.4

JAI CORP Cash Flow Statement Analysis

• JAI CORP's cash flow from operating activities (CFO) during FY18 stood at Rs 481 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 44 million from the Rs -11 million net cash flows seen during FY17.

JAI CORP Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	856	481	-43.8%
Cash Flow from Investing Activities	Rs m	-473	5,151	-
Cash Flow from Financing Activities	Rs m	-394	-5,588	-
Net Cash Flow	Rs m	-11	44	-

Current Valuations for JAI CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs -0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 133.5, stands at 97.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 99.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	35.9	32.5
TTM Earnings per share	Rs	-0.6	0.4
Diluted earnings per share	Rs	-0.6	0.4
Price to Cash Flow	x	193.6	99.1
TTM P/E ratio	x	-90.9	97.6
Price / Book Value ratio	x	1.0	1.9
Market Cap	Rs m	12,197	25,996
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 23.2x during FY18, from 0.7x during FY17. 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 1.5x during FY18, from 1.2x during FY17. 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 0.6% during FY18, from -0.8% during FY18. 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 4.6% during FY18, from 7.4% during FY17. 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 3.3% during FY18, from 3.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	0.7	23.2
Debtors’ Days	Days	440	501
Interest coverage	x	1.2	1.5
Debt to equity ratio	x	0.0	0.3
Return on assets	%	3.0	3.3
Return on equity	%	-0.8	0.6
Return on capital employed	%	7.4	4.6

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 74.0 to Rs 133.5, registering a gain of Rs 59.6 or around 80.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% 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