JUBILANT FOODWORKS 2018-19 Annual Report Analysis

Sun, 31 Mar

JUBILANT FOODWORKS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

JUBILANT FOODWORKS Income Statement Analysis

• Operating income during the year rose 18.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in FY19 as against 14.6% in FY18.
• Depreciation charges decreased by 1.7% increased by 0.0% YoY, respectively.
• Other income grew by 105.2% YoY.
• Net profit for the year grew by 62.0% YoY.
• Net profit margins during the year grew from 6.5% in FY18 to 8.9% in FY19.

JUBILANT FOODWORKS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	30,184	35,631	18.0%
Other income	Rs m	231	474	105.2%
Total Revenues	Rs m	30,415	36,105	18.7%
Gross profit	Rs m	4,401	5,998	36.3%
Depreciation	Rs m	1,601	1,575	-1.7%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	3,031	4,897	61.6%
Tax	Rs m	1,068	1,717	60.7%
Profit after tax	Rs m	1,962	3,180	62.0%
Gross profit margin	%	14.6	16.8
Effective tax rate	%	35.3	35.1
Net profit margin	%	6.5	8.9

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JUBILANT FOODWORKS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 5 billion in FY18, thereby witnessing an increase of 14.7%.
• Current assets rose 61% and stood at Rs 8 billion, while fixed assets rose 5% and stood at Rs 10 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 19 billion as against Rs 15 billion during FY18, thereby witnessing a growth of 24%.

JUBILANT FOODWORKS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	9,638	12,552	30.2
Current Liabilities	Rs m	4,735	5,430	14.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,967	18,557	24.0
Current assets	Rs m	5,053	8,117	60.6
Fixed Assets	Rs m	9,915	10,441	5.3
Total Assets	Rs m	14,967	18,557	24.0

JUBILANT FOODWORKS Cash Flow Statement Analysis

• JUBILANT FOODWORKS's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 3.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -5 billion, an improvement of 37.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -167 million, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -507 million from the Rs 424 million net cash flows seen during FY18.

JUBILANT FOODWORKS Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	4,090	4,235	3.5%
Cash Flow from Investing Activities	Rs m	-3,319	-4,575	-
Cash Flow from Financing Activities	Rs m	-347	-167	-
Net Cash Flow	Rs m	424	-507	-

Current Valuations for JUBILANT FOODWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.1, an decline from the EPS of Rs 29.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,442.9, stands at 366.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 75.9 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 52.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	457.5	270.0
TTM Earnings per share	Rs	29.7	24.1
Diluted earnings per share	Rs	3.0	4.8
Price to Cash Flow	x	430.8	52.7
TTM P/E ratio	x	743.8	366.3
Price / Book Value ratio	x	11.0	20.0
Market Cap	Rs m	106,034	250,543
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for JUBILANT FOODWORKS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY19, from 1.1x during FY18. 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 25.3% during FY19, from 20.4% during FY19. 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 39.0% during FY19, from 31.4% during FY18. 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 17.1% during FY19, from 13.1% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.1	1.5
Debtors’ Days	Days	19	28
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.1	17.1
Return on equity	%	20.4	25.3
Return on capital employed	%	31.4	39.0

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 down from Rs 2,326.7 to Rs 1,442.9, registering a loss of Rs 883.8 or around 38.0%.

Overall, the S&P BSE SENSEX is up 16.3% 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