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JK CEMENT 2019-20 Annual Report Analysis
Tue, 31 Mar

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 5.0% in FY19 to 8.3% 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 7,344 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 % 5.0 8.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

JK CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 18 billion as compared to Rs 17 billion in FY19, thereby witnessing an increase of 6.5%.
  • Long-term debt stood at Rs 27 billion as compared to Rs 24 billion during FY19, a growth of 10.8%.
  • Current assets rose 4% and stood at Rs 22 billion, while fixed assets rose 18% and stood at Rs 63 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 85 billion as against Rs 75 billion during FY19, thereby witnessing a growth of 14%.

JK CEMENT Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 27,022 30,277 12.0
 
Current Liabilities Rs m 17,135 18,247 6.5
Long-term Debt Rs m 24,398 27,035 10.8
Total Liabilities Rs m 75,164 85,420 13.6
 
Current assets Rs m 21,492 22,346 4.0
Fixed Assets Rs m 53,672 63,075 17.5
Total Assets Rs m 75,164 85,420 13.6
* 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 FY20 stood at Rs 14 billion, an improvement of 94.9% 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 13,718 94.9%
Cash Flow from Investing Activities Rs m -8,023 -14,765 -
Cash Flow from Financing Activities Rs m 1,728 -1,131 -
Net Cash Flow Rs m 517 -2,246 -
* 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 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 939.6, stands at 14.6 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 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.5 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 34.1 62.6
Price to Cash Flow x 13.2 11.5
TTM P/E ratio x 25.3 14.6
Price / Book Value ratio x 2.4 2.9
Market Cap Rs m 64,712 89,029
Dividends per share (Unadj.) Rs 10.0 7.5
* 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 1.2x 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 7.0% 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 179 168
Interest coverage x 2.6 3.7
Debt to equity ratio x 0.9 0.9
Return on assets % 7.0 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: 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 up from Rs 861.1 to Rs 939.6, registering a gain of Rs 78.5 or around 9.1%.

Overall, the S&P BSE SENSEX is down 24.2% 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 4,067.5 per share. You can check out the latest share price performance of JK CEMENT here...

What was the revenue of JK CEMENT in FY20? How does it compare to earlier years?

The revenues of JK CEMENT stood at Rs 58,870 m in FY20, which was up 10.3% compared to Rs 53,391 m reported in FY19.

JK CEMENT's revenue has grown from Rs 32,521 m in FY16 to Rs 58,870 m in FY20.

Over the past 5 years, the revenue of JK CEMENT has grown at a CAGR of 16.0%.

What was the net profit of JK CEMENT in FY20? How does it compare to earlier years?

The net profit of JK CEMENT stood at Rs 4,834 m in FY20, which was up 83.4% compared to Rs 2,636 m reported in FY19.

This compares to a net profit of Rs 2,856 m in FY18 and a net profit of Rs 1,720 m in FY17.

Over the past 5 years, JK CEMENT net profit has grown at a CAGR of 72.3%.

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 increased in FY20 and stood at Rs 13,718 m as compared to Rs 7,039 m in FY19.
  • Cash flow from investments decreased in FY20 and stood at Rs -14,765 m as compared to Rs -8,023 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -1,131 m as compared to Rs 1,728 m in FY19.

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

(Rs m)FY16FY17FY18FY19FY20
From Operations5,8007,7188,8317,03913,718
From Investments-4,076-6,492-958-8,023-14,765
From Financial Activity-1,932-3,456-7,2281,728-1,131
Net Cashflow-208-2,419813517-2,246

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 down at 20.9% in FY20 as against 15.9% in FY19.
  • Net profit margins grew from 5.0% in FY19 to 8.3% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.9 as compared to 0.9 in FY19.

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

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)17.120.816.415.920.9
Net Profit Margin (%)1.75.16.15.08.3
Debt to Equity Ratio (x)1.81.71.30.90.9

Read: Latest Annual Report Analysis of JK CEMENT

 

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