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JK LAKSHMI CEMENT 2017-18 Annual Report Analysis
Sat, 31 Mar

JK LAKSHMI CEMENT has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JK LAKSHMI CEMENT Income Statement Analysis

  • Operating income during the year rose 42.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.9% in FY18 as against 14.6% in FY17.
  • Depreciation charges increased by 18.5% and finance costs increased by 7.9% YoY, respectively.
  • Other income declined by 44.8% YoY.
  • Net profit for the year declined by 50.3% YoY.
  • Net profit margins during the year declined from 3.4% in FY17 to 1.2% in FY18.

JK LAKSHMI CEMENT Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 25,545 36,370 42.4%
Other income Rs m 1,251 690 -44.8%
Total Revenues Rs m 26,796 37,060 38.3%
Gross profit Rs m 3,738 4,345 16.3%
Depreciation Rs m 1,750 2,073 18.5%
Interest Rs m 2,444 2,637 7.9%
Profit before tax Rs m 795 325 -59.1%
Tax Rs m -78 -109 39.4%
Profit after tax Rs m 873 434 -50.3%
Gross profit margin % 14.6 11.9
Effective tax rate % -9.8 -33.4
Net profit margin % 3.4 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

JK LAKSHMI CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 15 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 12.6%.
  • Long-term debt down at Rs 18 billion as compared to Rs 21 billion during FY17, a fall of 12.3%.
  • Current assets fell 4% and stood at Rs 11 billion, while fixed assets fell 1% and stood at Rs 39 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 50 billion as against Rs 51 billion during FY17, thereby witnessing a fall of 1%.

JK LAKSHMI CEMENT Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 14,010 14,435 3.0
 
Current Liabilities Rs m 13,297 14,978 12.6
Long-term Debt Rs m 21,062 18,472 -12.3
Total Liabilities Rs m 50,991 50,271 -1.4
 
Current assets Rs m 11,188 10,778 -3.7
Fixed Assets Rs m 39,766 39,463 -0.8
Total Assets Rs m 50,991 50,271 -1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JK LAKSHMI CEMENT Cash Flow Statement Analysis

  • JK LAKSHMI CEMENT's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 24.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -702 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 23 million from the Rs -226 million net cash flows seen during FY17.

JK LAKSHMI CEMENT Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,964 4,932 24.4%
Cash Flow from Investing Activities Rs m -6,001 -702 -
Cash Flow from Financing Activities Rs m 1,811 -4,208 -
Net Cash Flow Rs m -226 23 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JK LAKSHMI CEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an decline from the EPS of Rs 7.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 463.0, stands at 64.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 217.1 309.1
TTM Earnings per share Rs 7.4 3.7
Diluted earnings per share Rs 7.4 3.7
Price to Cash Flow x 20.7 21.4
TTM P/E ratio x 66.3 64.9
Price / Book Value ratio x 3.5 3.7
Market Cap Rs m 49,245 53,543
Dividends per share (Unadj.) Rs 0.8 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JK LAKSHMI CEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY18, from 0.8x during FY17. 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 deteriorated and stood at 1.1x during FY18, from 1.3x during FY17. 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 3.0% during FY18, from 6.2% during FY18. 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 9.0% during FY18, from 9.2% during FY17. 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 6.1% during FY18, from 6.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.8 0.7
Debtors’ Days Days 1 1
Interest coverage x 1.3 1.1
Debt to equity ratio x 1.5 1.3
Return on assets % 6.5 6.1
Return on equity % 6.2 3.0
Return on capital employed % 9.2 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

JK LAKSHMI CEMENT Share Price Performance

Over the last one year, JK LAKSHMI CEMENT share price has moved up from Rs 462.4 to Rs 463.0, registering a gain of Rs 0.6 or around 0.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of JK LAKSHMI CEMENT?

JK LAKSHMI CEMENT currently trades at Rs 872.6 per share. You can check out the latest share price performance of JK LAKSHMI CEMENT here...

What was the revenue of JK LAKSHMI CEMENT in FY18? How does it compare to earlier years?

The revenues of JK LAKSHMI CEMENT stood at Rs 37,060 m in FY18, which was up 38.3% compared to Rs 26,796 m reported in FY17.

JK LAKSHMI CEMENT's revenue has grown from Rs 18,637 m in FY14 to Rs 37,060 m in FY18.

Over the past 5 years, the revenue of JK LAKSHMI CEMENT has grown at a CAGR of 18.7%.

What was the net profit of JK LAKSHMI CEMENT in FY18? How does it compare to earlier years?

The net profit of JK LAKSHMI CEMENT stood at Rs 434 m in FY18, which was down -50.3% compared to Rs 873 m reported in FY17.

This compares to a net profit of Rs 43 m in FY16 and a net profit of Rs 1,054 m in FY15.

Over the past 5 years, JK LAKSHMI CEMENT net profit has grown at a CAGR of -17.3%.

What does the cash flow statement of JK LAKSHMI 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 LAKSHMI CEMENT reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 4,932 m as compared to Rs 3,964 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -702 m as compared to Rs -6,001 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -4,208 m as compared to Rs 1,811 m in FY17.

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

(Rs m)FY14FY15FY16FY17FY18
From Operations3,5443,3042,6683,9644,932
From Investments-5,157-4,300-2,863-6,001-702
From Financial Activity2,3362983341,811-4,208
Net Cashflow724-699139-22623

What does the Key Ratio analysis of JK LAKSHMI 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 LAKSHMI CEMENT reveals:

  • Operating profit margins witnessed a fall and stood at 11.9% in FY18 as against 14.6% in FY17.
  • Net profit margins declined from 3.4% in FY17 to 1.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 1.3 as compared to 1.5 in FY17.

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

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)15.614.111.414.611.9
Net Profit Margin (%)5.15.10.23.41.2
Debt to Equity Ratio (x)1.11.11.31.51.3

Read: Latest Annual Report Analysis of JK LAKSHMI CEMENT

 

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