JUBILANT FOODWORKS 2019-20 Annual Report Analysis

Tue, 31 Mar

JUBILANT FOODWORKS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

JUBILANT FOODWORKS Income Statement Analysis

• Operating income during the year rose 10.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY20 as against 16.8% in FY19.
• Depreciation charges increased by 123.7% increased by 0.0% YoY, respectively.
• Other income grew by 47.0% YoY.
• Net profit for the year declined by 12.3% YoY.
• Net profit margins during the year declined from 8.9% in FY19 to 7.1% in FY20.

JUBILANT FOODWORKS Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	35,631	39,273	10.2%
Other income	Rs m	474	696	47.0%
Total Revenues	Rs m	36,105	39,969	10.7%
Gross profit	Rs m	5,998	8,507	41.8%
Depreciation	Rs m	1,575	3,523	123.7%
Interest	Rs m	0	1,652	0.0%
Profit before tax	Rs m	4,897	4,028	-17.7%
Tax	Rs m	1,717	1,240	-27.8%
Profit after tax	Rs m	3,180	2,788	-12.3%
Gross profit margin	%	16.8	21.7
Effective tax rate	%	35.1	30.8
Net profit margin	%	8.9	7.1

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JUBILANT FOODWORKS Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 14 billion as compared to Rs 5 billion in FY19, thereby witnessing an increase of 152.8%.
• Current assets rose 6% and stood at Rs 9 billion, while fixed assets rose 197% and stood at Rs 31 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 40 billion as against Rs 19 billion during FY19, thereby witnessing a growth of 113%.

JUBILANT FOODWORKS Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	12,552	11,161	-11.1
Current Liabilities	Rs m	5,430	13,726	152.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	18,557	39,554	113.1
Current assets	Rs m	8,117	8,591	5.8
Fixed Assets	Rs m	10,441	30,963	196.6
Total Assets	Rs m	18,557	39,554	113.1

JUBILANT FOODWORKS Cash Flow Statement Analysis

• JUBILANT FOODWORKS's cash flow from operating activities (CFO) during FY20 stood at Rs 7 billion, an improvement of 71.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -987 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs 2 billion from the Rs -507 million net cash flows seen during FY19.

JUBILANT FOODWORKS Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	4,235	7,278	71.8%
Cash Flow from Investing Activities	Rs m	-4,575	-987	-
Cash Flow from Financing Activities	Rs m	-167	-4,614	-
Net Cash Flow	Rs m	-507	1,677	-

Current Valuations for JUBILANT FOODWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.1, an decline from the EPS of Rs 24.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,470.3, stands at 348.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 86.9 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 31.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	270.0	297.6
TTM Earnings per share	Rs	24.1	21.1
Diluted earnings per share	Rs	4.8	4.2
Price to Cash Flow	x	200.3	31.9
TTM P/E ratio	x	366.3	348.0
Price / Book Value ratio	x	20.0	18.0
Market Cap	Rs m	250,543	201,332
Dividends per share (Unadj.)	Rs	1.0	1.2

Ratio Analysis for JUBILANT FOODWORKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY20, from 1.5x during FY19. 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 3.4x during FY20, from 0.0x during FY19. 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 25.0% during FY20, from 25.3% during FY20. 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 50.9% during FY20, from 39.0% during FY19. 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 11.2% during FY20, from 17.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.5	0.6
Debtors’ Days	Days	28	15
Interest coverage	x	0.0	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	11.2
Return on equity	%	25.3	25.0
Return on capital employed	%	39.0	50.9

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 1,442.9 to Rs 1,470.3, registering a gain of Rs 27.4 or around 1.9%.

Overall, the S&P BSE SENSEX is down 24.2% 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