JUBILANT FOODWORKS 2020-21 Annual Report Analysis

Wed, 31 Mar

JUBILANT FOODWORKS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

JUBILANT FOODWORKS Income Statement Analysis

• Operating income during the year fell 15.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.3% in FY21 as against 21.7% in FY20.
• Depreciation charges increased by 6.6% and finance costs decreased by 1.5% YoY, respectively.
• Other income grew by 5.0% YoY.
• Net profit for the year declined by 17.3% YoY.
• Net profit margins during the year declined from 7.1% in FY20 to 7.0% in FY21.

JUBILANT FOODWORKS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	39,273	33,119	-15.7%
Other income	Rs m	696	731	5.0%
Total Revenues	Rs m	39,969	33,849	-15.3%
Gross profit	Rs m	8,507	7,712	-9.3%
Depreciation	Rs m	3,523	3,754	6.6%
Interest	Rs m	1,652	1,627	-1.5%
Profit before tax	Rs m	4,028	3,062	-24.0%
Tax	Rs m	1,240	757	-39.0%
Profit after tax	Rs m	2,788	2,305	-17.3%
Gross profit margin	%	21.7	23.3
Effective tax rate	%	30.8	24.7
Net profit margin	%	7.1	7.0

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JUBILANT FOODWORKS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 16 billion as compared to Rs 14 billion in FY20, thereby witnessing an increase of 17.7%.
• Current assets fell 2% and stood at Rs 8 billion, while fixed assets rose 16% and stood at Rs 36 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 44 billion as against Rs 40 billion during FY20, thereby witnessing a growth of 12%.

JUBILANT FOODWORKS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,161	14,199	27.2
Current Liabilities	Rs m	13,726	16,153	17.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	39,554	44,377	12.2
Current assets	Rs m	8,591	8,382	-2.4
Fixed Assets	Rs m	30,963	35,995	16.3
Total Assets	Rs m	39,554	44,377	12.2

JUBILANT FOODWORKS Cash Flow Statement Analysis

• JUBILANT FOODWORKS's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion, an improvement of 3.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 510.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY20.

JUBILANT FOODWORKS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	7,278	7,506	3.1%
Cash Flow from Investing Activities	Rs m	-987	-6,021	-
Cash Flow from Financing Activities	Rs m	-4,614	-2,887	-
Net Cash Flow	Rs m	1,677	-1,402	-

Current Valuations for JUBILANT FOODWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.5, an decline from the EPS of Rs 21.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,913.1, stands at 833.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 135.4 times, while the price to sales ratio stands at 11.6 times.
• The company's price to cash flow (P/CF) ratio stood at 48.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	297.6	251.0
TTM Earnings per share	Rs	21.1	17.5
Diluted earnings per share	Rs	4.2	3.5
Price to Cash Flow	x	153.7	48.8
TTM P/E ratio	x	348.0	833.8
Price / Book Value ratio	x	18.0	20.8
Market Cap	Rs m	201,332	295,587
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for JUBILANT FOODWORKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY21, from 0.6x during FY20. 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 2.9x during FY21, from 3.4x during FY20. 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 16.2% during FY21, from 25.0% during FY21. 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 33.0% during FY21, from 50.9% during FY20. 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 8.9% during FY21, from 11.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.6	0.5
Debtors’ Days	Days	15	19
Interest coverage	x	3.4	2.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	8.9
Return on equity	%	25.0	16.2
Return on capital employed	%	50.9	33.0

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 up from Rs 1,470.3 to Rs 2,913.1, registering a gain of Rs 1,442.8 or around 98.1%.

Overall, the S&P BSE SENSEX is up 74.1% 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