JK CEMENT 2018-19 Annual Report Analysis

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JK CEMENT 2018-19 Annual Report Analysis
Mon, 23 Sep

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 8.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.9% in FY19 as against 16.2% in FY18.
  • Depreciation charges increased by 4.4% 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 5.7% in FY18 to 4.9% in FY19.

JK CEMENT Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 48,535 52,587 8.3%
Other income Rs m 1,281 804 -37.3%
Total Revenues Rs m 49,817 53,391 7.2%
Gross profit Rs m 7,874 8,345 6.0%
Depreciation Rs m 2,312 2,413 4.4%
Interest Rs m 2,841 2,611 -8.1%
Profit before tax Rs m 4,002 4,124 3.1%
Tax Rs m 976 1,488 52.4%
Profit after tax Rs m 2,856 2,636 -7.7%
Gross profit margin % 16.2 15.9
Effective tax rate % 24.4 36.1
Net profit margin % 5.7 4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JK CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 16 billion as compared to Rs 13 billion in FY18, thereby witnessing an increase of 22.5%.
  • Long-term debt down at Rs 24 billion as compared to Rs 26 billion during FY18, a fall of 5.2%.
  • Current assets rose 22% and stood at Rs 21 billion, while fixed assets rose 12% and stood at Rs 51 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 74 billion as against Rs 65 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 26,950 36.5
 
Current Liabilities Rs m 13,096 16,037 22.5
Long-term Debt Rs m 25,741 24,398 -5.2
Total Liabilities Rs m 64,560 74,177 14.9
 
Current assets Rs m 16,845 20,632 22.5
Fixed Assets Rs m 45,476 50,985 12.1
Total Assets Rs m 64,560 74,177 14.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -7 billion, an improvement of 678.4% 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 1 billion 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 6,996 -20.8%
Cash Flow from Investing Activities Rs m -958 -7,457 -
Cash Flow from Financing Activities Rs m -7,228 1,727 -
Net Cash Flow Rs m 813 1,039 27.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,124.7, stands at 21.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.6 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 694.1 680.6
TTM Earnings per share Rs 40.8 34.1
Diluted earnings per share Rs 40.8 37.7
Price to Cash Flow x 15.2 15.6
TTM P/E ratio x 21.4 21.4
Price / Book Value ratio x 3.7 2.4
Market Cap Rs m 78,650 78,647
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JK CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 2.4x 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 7.1% during FY19, from 8.8% 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 18 18
Interest coverage x 2.4 2.6
Debt to equity ratio x 1.3 0.9
Return on assets % 8.8 7.1
Return on equity % 14.5 9.8
Return on capital employed % 14.7 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 801.8 to Rs 1,124.7, registering a gain of Rs 322.9 or around 40.3%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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