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JK CEMENT 2018-19 Annual Report Analysis
Sun, 31 Mar

JK CEMENT 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.

JK CEMENT Income Statement Analysis

  • Operating income during the year rose 12.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.9% in FY19 as against 16.4% in FY18.
  • Depreciation charges increased by 4.3% and finance costs decreased by 8.1% YoY, respectively.
  • Other income declined by 37.3% YoY.
  • Net profit for the year declined by 7.7% YoY.
  • Net profit margins during the year declined from 6.1% in FY18 to 5.0% in FY19.

JK CEMENT Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 46,865 52,587 12.2%
Other income Rs m 1,281 804 -37.3%
Total Revenues Rs m 48,147 53,391 10.9%
Gross profit Rs m 7,705 8,345 8.3%
Depreciation Rs m 2,313 2,413 4.3%
Interest Rs m 2,841 2,611 -8.1%
Profit before tax Rs m 3,832 4,124 7.6%
Tax Rs m 976 1,488 52.4%
Profit after tax Rs m 2,856 2,636 -7.7%
Gross profit margin % 16.4 15.9
Effective tax rate % 25.5 36.1
Net profit margin % 6.1 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

JK CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 17 billion as compared to Rs 14 billion in FY18, thereby witnessing an increase of 22.1%.
  • Long-term debt down at Rs 24 billion as compared to Rs 26 billion during FY18, a fall of 5.2%.
  • Current assets rose 21% and stood at Rs 21 billion, while fixed assets rose 12% and stood at Rs 54 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 75 billion as against Rs 66 billion during FY18, thereby witnessing a growth of 15%.

JK CEMENT Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 19,749 27,022 36.8
 
Current Liabilities Rs m 14,038 17,135 22.1
Long-term Debt Rs m 25,741 24,398 -5.2
Total Liabilities Rs m 65,502 75,164 14.8
 
Current assets Rs m 17,786 21,492 20.8
Fixed Assets Rs m 47,716 53,672 12.5
Total Assets Rs m 65,502 75,164 14.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JK CEMENT Cash Flow Statement Analysis

  • JK CEMENT's cash flow from operating activities (CFO) during FY19 stood at Rs 7 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion, an improvement of 737.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 124% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 517 million from the Rs 813 million net cash flows seen during FY18.

JK CEMENT 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 8,831 7,039 -20.3%
Cash Flow from Investing Activities Rs m -958 -8,023 -
Cash Flow from Financing Activities Rs m -7,228 1,728 -
Net Cash Flow Rs m 813 517 -36.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JK CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.1, an decline from the EPS of Rs 40.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 861.1, stands at 25.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.8 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 670.2 680.6
TTM Earnings per share Rs 40.8 34.1
Diluted earnings per share Rs 37.0 34.1
Price to Cash Flow x 15.2 12.8
TTM P/E ratio x 23.0 25.3
Price / Book Value ratio x 3.7 2.4
Market Cap Rs m 72,952 64,712
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JK CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.3x during FY18. 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 2.6x during FY19, from 2.3x during FY18. 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 9.8% during FY19, from 14.5% 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 declined and down at 13.1% during FY19, from 14.7% 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 declined and down at 7.0% during FY19, from 8.7% 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 1.3 1.3
Debtors’ Days Days 184 179
Interest coverage x 2.3 2.6
Debt to equity ratio x 1.3 0.9
Return on assets % 8.7 7.0
Return on equity % 14.5 9.8
Return on capital employed % 14.7 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how JK CEMENT has performed over the last 5 years, please visit here.

JK CEMENT Share Price Performance

Over the last one year, JK CEMENT share price has moved down from Rs 1,016.6 to Rs 861.1, registering a loss of Rs 155.6 or around 15.3%.

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

(To know more, check out historical annual results for JK CEMENT and quarterly results for JK CEMENT)

Annual Report FAQs

What is the current share price of JK CEMENT?

JK CEMENT currently trades at Rs 4,076.9 per share. You can check out the latest share price performance of JK CEMENT here...

What was the revenue of JK CEMENT in FY19? How does it compare to earlier years?

The revenues of JK CEMENT stood at Rs 53,391 m in FY19, which was up 10.9% compared to Rs 48,147 m reported in FY18.

JK CEMENT's revenue has grown from Rs 29,355 m in FY15 to Rs 53,391 m in FY19.

Over the past 5 years, the revenue of JK CEMENT has grown at a CAGR of 16.1%.

What was the net profit of JK CEMENT in FY19? How does it compare to earlier years?

The net profit of JK CEMENT stood at Rs 2,636 m in FY19, which was down -7.7% compared to Rs 2,856 m reported in FY18.

This compares to a net profit of Rs 1,720 m in FY17 and a net profit of Rs 548 m in FY16.

Over the past 5 years, JK CEMENT net profit has grown at a CAGR of 16.7%.

What does the cash flow statement of JK CEMENT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of JK CEMENT reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 7,039 m as compared to Rs 8,831 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -8,023 m as compared to Rs -958 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 1,728 m as compared to Rs -7,228 m in FY18.

Here's the cash flow statement of JK CEMENT for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations2,5625,8007,7188,8317,039
From Investments-4,780-4,076-6,492-958-8,023
From Financial Activity2,303-1,932-3,456-7,2281,728
Net Cashflow85-208-2,419813517

What does the Key Ratio analysis of JK CEMENT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of JK CEMENT reveals:

  • Operating profit margins witnessed a fall and stood at 15.9% in FY19 as against 16.4% in FY18.
  • Net profit margins declined from 6.1% in FY18 to 5.0% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.9 as compared to 1.3 in FY18.

Here's the ratio/financial analysis of JK CEMENT for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)16.217.120.816.415.9
Net Profit Margin (%)4.91.75.16.15.0
Debt to Equity Ratio (x)1.71.81.71.30.9

Read: Latest Annual Report Analysis of JK CEMENT

 

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