Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

War Profits
Revealing a Potential 33x
Opportunity in Defence




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a Free-for-life newsletter from Equitymaster,
which offers the most profitable investing ideas in India.


AD

JK CEMENT 2020-21 Annual Report Analysis
Wed, 31 Mar

JK CEMENT 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.

JK CEMENT Income Statement Analysis

  • Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.3% in FY21 as against 20.9% in FY20.
  • Depreciation charges increased by 6.3% and finance costs decreased by 8.5% YoY, respectively.
  • Other income grew by 32.4% YoY.
  • Net profit for the year grew by 45.5% YoY.
  • Net profit margins during the year grew from 8.3% in FY20 to 10.6% in FY21.

JK CEMENT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 58,016 66,061 13.9%
Other income Rs m 853 1,130 32.4%
Total Revenues Rs m 58,870 67,191 14.1%
Gross profit Rs m 12,134 15,387 26.8%
Depreciation Rs m 2,880 3,062 6.3%
Interest Rs m 2,764 2,528 -8.5%
Profit before tax Rs m 7,344 10,927 48.8%
Tax Rs m 2,511 3,896 55.2%
Profit after tax Rs m 4,834 7,031 45.5%
Gross profit margin % 20.9 23.3
Effective tax rate % 34.2 35.7
Net profit margin % 8.3 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

JK CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 20 billion as compared to Rs 18 billion in FY20, thereby witnessing an increase of 7.3%.
  • Long-term debt stood at Rs 30 billion as compared to Rs 27 billion during FY20, a growth of 10.7%.
  • Current assets rose 42% and stood at Rs 32 billion, while fixed assets rose 6% and stood at Rs 67 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 99 billion as against Rs 85 billion during FY20, thereby witnessing a growth of 16%.

JK CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 30,277 37,367 23.4
 
Current Liabilities Rs m 18,247 19,574 7.3
Long-term Debt Rs m 27,035 29,931 10.7
Total Liabilities Rs m 85,420 98,720 15.6
 
Current assets Rs m 22,346 31,831 42.4
Fixed Assets Rs m 63,075 66,889 6.0
Total Assets Rs m 85,420 98,720 15.6
* 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 FY21 stood at Rs 16 billion, an improvement of 15.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -13 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion 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.

JK CEMENT 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 13,718 15,903 15.9%
Cash Flow from Investing Activities Rs m -14,765 -13,437 -
Cash Flow from Financing Activities Rs m -1,131 -1,375 -
Net Cash Flow Rs m -2,246 1,082 -
* 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 91.0, an improvement from the EPS of Rs 62.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,894.1, stands at 31.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.0 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 750.8 854.9
TTM Earnings per share Rs 62.6 91.0
Diluted earnings per share Rs 62.6 91.0
Price to Cash Flow x 9.4 15.0
TTM P/E ratio x 14.6 31.8
Price / Book Value ratio x 2.9 4.1
Market Cap Rs m 89,029 151,794
Dividends per share (Unadj.) Rs 7.5 15.0
* 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 improved and stood at 1.6x during FY21, from 1.2x 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 improved and stood at 5.3x during FY21, from 3.7x 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 improved and stood at 18.8% during FY21, from 16.0% 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 improved and stood at 20.0% during FY21, from 17.6% 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 improved and stood at 9.7% during FY21, from 8.9% 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 1.2 1.6
Debtors’ Days Days 168 200
Interest coverage x 3.7 5.3
Debt to equity ratio x 0.9 0.8
Return on assets % 8.9 9.7
Return on equity % 16.0 18.8
Return on capital employed % 17.6 20.0
* 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 939.6 to Rs 2,894.1, registering a gain of Rs 1,954.6 or around 208.0%.

Overall, the S&P BSE SENSEX is up 74.1% 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 2,646.7 per share. You can check out the latest share price performance of JK CEMENT here...

What was the revenue of JK CEMENT in FY21? How does it compare to earlier years?

The revenues of JK CEMENT stood at Rs 67,191 m in FY21, which was up 14.1% compared to Rs 58,870 m reported in FY20.

JK CEMENT's revenue has grown from Rs 34,889 m in FY17 to Rs 67,191 m in FY21.

Over the past 5 years, the revenue of JK CEMENT has grown at a CAGR of 17.8%.

What was the net profit of JK CEMENT in FY21? How does it compare to earlier years?

The net profit of JK CEMENT stood at Rs 7,031 m in FY21, which was up 45.5% compared to Rs 4,834 m reported in FY20.

This compares to a net profit of Rs 2,636 m in FY19 and a net profit of Rs 2,856 m in FY18.

Over the past 5 years, JK CEMENT net profit has grown at a CAGR of 42.2%.

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 FY21 and stood at Rs 15,903 m as compared to Rs 13,718 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -13,437 m as compared to Rs -14,765 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -1,375 m as compared to Rs -1,131 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations7,7188,8317,03913,71815,903
From Investments-6,492-958-8,023-14,765-13,437
From Financial Activity-3,456-7,2281,728-1,131-1,375
Net Cashflow-2,419813517-2,2461,082

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 23.3% in FY21 as against 20.9% in FY20.
  • Net profit margins grew from 8.3% in FY20 to 10.6% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.8 as compared to 0.9 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)20.816.415.920.923.3
Net Profit Margin (%)5.16.15.08.310.6
Debt to Equity Ratio (x)1.71.30.90.90.8

Read: Latest Annual Report Analysis of JK CEMENT

Equitymaster requests your view! Post a comment on "JK CEMENT 2020-21 Annual Report Analysis". Click here!