JUBILANT FOODWORKS 2017-18 Annual Report Analysis

Sat, 31 Mar

JUBILANT FOODWORKS 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.

JUBILANT FOODWORKS Income Statement Analysis

• Operating income during the year rose 16.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 92.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.6% in FY18 as against 8.9% in FY17.
• Depreciation charges increased by 3.0% increased by 0.0% YoY, respectively.
• Other income grew by 56.5% YoY.
• Net profit for the year grew by 239.6% YoY.
• Net profit margins during the year grew from 2.2% in FY17 to 6.5% in FY18.

JUBILANT FOODWORKS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	25,834	30,184	16.8%
Other income	Rs m	147	231	56.5%
Total Revenues	Rs m	25,981	30,415	17.1%
Gross profit	Rs m	2,290	4,401	92.2%
Depreciation	Rs m	1,554	1,601	3.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	883	3,031	243.3%
Tax	Rs m	305	1,068	250.3%
Profit after tax	Rs m	578	1,962	239.6%
Gross profit margin	%	8.9	14.6
Effective tax rate	%	34.5	35.3
Net profit margin	%	2.2	6.5

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JUBILANT FOODWORKS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 13.9%.
• Current assets rose 111% and stood at Rs 5 billion, while fixed assets fell 6% and stood at Rs 10 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 15 billion as against Rs 13 billion during FY17, thereby witnessing a growth of 16%.

JUBILANT FOODWORKS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	7,933	9,638	21.5
Current Liabilities	Rs m	4,157	4,735	13.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,906	14,967	16.0
Current assets	Rs m	2,394	5,053	111.1
Fixed Assets	Rs m	10,513	9,915	-5.7
Total Assets	Rs m	12,906	14,967	16.0

JUBILANT FOODWORKS Cash Flow Statement Analysis

• JUBILANT FOODWORKS's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 100.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 76.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -347 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 424 million from the Rs 5 million net cash flows seen during FY17.

JUBILANT FOODWORKS 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	2,036	4,090	100.9%
Cash Flow from Investing Activities	Rs m	-1,883	-3,319	-
Cash Flow from Financing Activities	Rs m	-148	-347	-
Net Cash Flow	Rs m	5	424	8,853.9%

Current Valuations for JUBILANT FOODWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.7, an improvement from the EPS of Rs 8.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,326.7, stands at 743.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 159.3 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 29.8 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	391.7	457.5
TTM Earnings per share	Rs	8.8	29.7
Diluted earnings per share	Rs	0.9	3.0
Price to Cash Flow	x	342.3	29.8
TTM P/E ratio	x	1,085.3	743.8
Price / Book Value ratio	x	8.8	11.0
Market Cap	Rs m	69,533	106,034
Dividends per share (Unadj.)	Rs	0.5	1.0

Ratio Analysis for JUBILANT FOODWORKS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 0.6x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 20.4% during FY18, from 7.3% 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 improved and stood at 31.4% during FY18, from 11.1% 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 13.1% during FY18, from 4.5% 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	0.6	1.1
Debtors’ Days	Days	23	19
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	13.1
Return on equity	%	7.3	20.4
Return on capital employed	%	11.1	31.4

To see how JUBILANT FOODWORKS has performed over the last 5 years, please visit here.

JUBILANT FOODWORKS Share Price Performance

Over the last one year, JUBILANT FOODWORKS share price has moved up from Rs 1,106.2 to Rs 2,326.7, registering a gain of Rs 1,220.5 or around 110.3%.

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

(To know more, check out historical annual results for JUBILANT FOODWORKS and quarterly results for JUBILANT FOODWORKS)

Read: Latest Annual Report Analysis of JUBILANT FOODWORKS