JK CEMENT 2019-20 Annual Report Analysis

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JK CEMENT 2019-20 Annual Report Analysis
Tue, 1 Dec

JK CEMENT 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.

JK CEMENT Income Statement Analysis

  • Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 45.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.9% in FY20 as against 15.9% in FY19.
  • Depreciation charges increased by 19.3% and finance costs increased by 5.8% YoY, respectively.
  • Other income grew by 6.2% YoY.
  • Net profit for the year grew by 83.4% YoY.
  • Net profit margins during the year grew from 4.9% in FY19 to 8.2% in FY20.

JK CEMENT Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 52,587 58,016 10.3%
Other income Rs m 804 853 6.2%
Total Revenues Rs m 53,391 58,870 10.3%
Gross profit Rs m 8,345 12,134 45.4%
Depreciation Rs m 2,413 2,880 19.3%
Interest Rs m 2,611 2,764 5.8%
Profit before tax Rs m 4,124 7,345 78.1%
Tax Rs m 1,488 2,511 68.7%
Profit after tax Rs m 2,636 4,834 83.4%
Gross profit margin % 15.9 20.9
Effective tax rate % 36.1 34.2
Net profit margin % 4.9 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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JK CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 18 billion as compared to Rs 16 billion in FY19, thereby witnessing an increase of 13.4%.
  • Long-term debt stood at Rs 27 billion as compared to Rs 24 billion during FY19, a growth of 10.8%.
  • Current assets rose 9% and stood at Rs 22 billion, while fixed assets rose 19% and stood at Rs 61 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 85 billion as against Rs 74 billion during FY19, thereby witnessing a growth of 15%.

JK CEMENT Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 26,950 30,277 12.3
 
Current Liabilities Rs m 16,098 18,247 13.4
Long-term Debt Rs m 24,398 27,035 10.8
Total Liabilities Rs m 74,127 85,420 15.2
 
Current assets Rs m 20,454 22,346 9.2
Fixed Assets Rs m 50,985 60,840 19.3
Total Assets Rs m 74,127 85,420 15.2
* 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 FY20 stood at Rs 14 billion, an improvement of 94.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -15 billion, an improvement of 84.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -2 billion from the Rs 517 million net cash flows seen during FY19.

JK CEMENT 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 7,039 13,668 94.2%
Cash Flow from Investing Activities Rs m -8,023 -14,765 -
Cash Flow from Financing Activities Rs m 1,728 -1,082 -
Net Cash Flow Rs m 517 -2,246 -
* 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 62.6, an improvement from the EPS of Rs 34.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,057.7, stands at 35.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.7 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 680.6 750.8
TTM Earnings per share Rs 34.1 62.6
Diluted earnings per share Rs 37.7 69.1
Price to Cash Flow x 31.5 18.7
TTM P/E ratio x 39.7 35.9
Price / Book Value ratio x 2.4 2.9
Market Cap Rs m 158,998 143,889
Dividends per share (Unadj.) Rs 10.0 7.5
* 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 deteriorated and stood at 1.2x during FY20, from 1.3x 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 3.7x during FY20, from 2.6x 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 improved and stood at 16.0% during FY20, from 9.8% 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 17.6% during FY20, from 13.1% 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 improved and stood at 8.9% during FY20, from 7.1% 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 1.3 1.2
Debtors’ Days Days 18 17
Interest coverage x 2.6 3.7
Debt to equity ratio x 0.9 0.9
Return on assets % 7.1 8.9
Return on equity % 9.8 16.0
Return on capital employed % 13.1 17.6
* 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 1,157.3 to Rs 2,057.7, registering a gain of Rs 900.4 or around 77.8%.

Overall, the S&P BSE SENSEX is up 9.4% over the year.

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

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Related Views on News

JK CEMENT Announces Quarterly Results (3QFY21); Net Profit Up 73.2% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, JK CEMENT has posted a net profit of Rs 2 bn (up 73.2% YoY). Sales on the other hand came in at Rs 18 bn (up 25.3% YoY). Read on for a complete analysis of JK CEMENT's quarterly results.

JK CEMENT Announces Quarterly Results (3QFY20); Net Profit Up 125.8% (Quarterly Result Update)

Feb 10, 2020 | Updated on Feb 10, 2020

For the quarter ended December 2019, JK CEMENT has posted a net profit of Rs 1 bn (up 125.8% YoY). Sales on the other hand came in at Rs 14 bn (up 10.3% YoY). Read on for a complete analysis of JK CEMENT's quarterly results.

JK CEMENT 2018-19 Annual Report Analysis (Annual Result Update)

Sep 23, 2019 | Updated on Sep 23, 2019

Here's an analysis of the annual report of JK CEMENT for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of JK CEMENT. Also includes updates on the valuation of JK CEMENT.

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