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JK LAKSHMI CEMENT 2018-19 Annual Report Analysis
Sun, 31 Mar

JK LAKSHMI 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 LAKSHMI CEMENT Income Statement Analysis

  • Operating income during the year rose 18.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY19 as against 11.9% in FY18.
  • Depreciation charges increased by 1.8% and finance costs decreased by 4.1% YoY, respectively.
  • Other income declined by 19.8% YoY.
  • Net profit for the year declined by 6.3% YoY.
  • Net profit margins during the year declined from 1.2% in FY18 to 0.9% in FY19.

JK LAKSHMI CEMENT Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 36,370 43,163 18.7%
Other income Rs m 690 554 -19.8%
Total Revenues Rs m 37,060 43,717 18.0%
Gross profit Rs m 4,345 4,573 5.2%
Depreciation Rs m 2,073 2,110 1.8%
Interest Rs m 2,637 2,528 -4.1%
Profit before tax Rs m 325 489 50.2%
Tax Rs m -109 82 -175.6%
Profit after tax Rs m 434 407 -6.3%
Gross profit margin % 11.9 10.6
Effective tax rate % -33.4 16.8
Net profit margin % 1.2 0.9
* 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 FY19 stood at Rs 16 billion as compared to Rs 15 billion in FY18, thereby witnessing an increase of 3.7%.
  • Long-term debt down at Rs 17 billion as compared to Rs 18 billion during FY18, a fall of 9.8%.
  • Current assets fell 6% and stood at Rs 10 billion, while fixed assets rose 0% and stood at Rs 40 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 50 billion as against Rs 50 billion during FY18, thereby witnessing a fall of 1%.

JK LAKSHMI CEMENT Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 14,435 14,846 2.8
 
Current Liabilities Rs m 14,978 15,532 3.7
Long-term Debt Rs m 18,472 16,665 -9.8
Total Liabilities Rs m 50,271 49,726 -1.1
 
Current assets Rs m 10,778 10,100 -6.3
Fixed Assets Rs m 39,463 39,603 0.4
Total Assets Rs m 50,271 49,726 -1.1
* 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 FY19 stood at Rs 8 billion, an improvement of 54.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -771 million, an improvement of 10.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -7 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 70 million from the Rs 23 million net cash flows seen during FY18.

JK LAKSHMI 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 4,932 7,602 54.1%
Cash Flow from Investing Activities Rs m -702 -771 -
Cash Flow from Financing Activities Rs m -4,208 -6,761 -
Net Cash Flow Rs m 23 70 210.2%
* 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 3.5, an decline from the EPS of Rs 3.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 347.7, stands at 51.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.4 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 309.1 366.8
TTM Earnings per share Rs 3.7 3.5
Diluted earnings per share Rs 3.7 3.5
Price to Cash Flow x 21.7 16.4
TTM P/E ratio x 64.9 51.4
Price / Book Value ratio x 3.7 2.8
Market Cap Rs m 53,543 41,376
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 FY19, from 0.7x 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 1.2x during FY19, from 1.1x 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 2.7% during FY19, from 3.0% 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 improved and stood at 9.6% during FY19, from 9.0% 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 5.9% during FY19, from 6.1% 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 0.7 0.7
Debtors’ Days Days 1 1
Interest coverage x 1.1 1.2
Debt to equity ratio x 1.3 1.1
Return on assets % 6.1 5.9
Return on equity % 3.0 2.7
Return on capital employed % 9.0 9.6
* 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 down from Rs 463.0 to Rs 347.7, registering a loss of Rs 115.3 or around 24.9%.

Overall, the S&P BSE SENSEX is up 16.3% 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 FY19? How does it compare to earlier years?

The revenues of JK LAKSHMI CEMENT stood at Rs 43,717 m in FY19, which was up 18.0% compared to Rs 37,060 m reported in FY18.

JK LAKSHMI CEMENT's revenue has grown from Rs 20,825 m in FY15 to Rs 43,717 m in FY19.

Over the past 5 years, the revenue of JK LAKSHMI CEMENT has grown at a CAGR of 20.4%.

What was the net profit of JK LAKSHMI CEMENT in FY19? How does it compare to earlier years?

The net profit of JK LAKSHMI CEMENT stood at Rs 407 m in FY19, which was down -6.3% compared to Rs 434 m reported in FY18.

This compares to a net profit of Rs 873 m in FY17 and a net profit of Rs 43 m in FY16.

Over the past 5 years, JK LAKSHMI CEMENT net profit has grown at a CAGR of -21.2%.

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 FY19 and stood at Rs 7,602 m as compared to Rs 4,932 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -771 m as compared to Rs -702 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -6,761 m as compared to Rs -4,208 m in FY18.

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

(Rs m)FY15FY16FY17FY18FY19
From Operations3,3042,6683,9644,9327,602
From Investments-4,300-2,863-6,001-702-771
From Financial Activity2983341,811-4,208-6,761
Net Cashflow-699139-2262370

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 10.6% in FY19 as against 11.9% in FY18.
  • Net profit margins declined from 1.2% in FY18 to 0.9% in FY19.
  • Debt to Equity ratio for FY19 stood at 1.1 as compared to 1.3 in FY18.

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

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)14.111.414.611.910.6
Net Profit Margin (%)5.10.23.41.20.9
Debt to Equity Ratio (x)1.11.31.51.31.1

Read: Latest Annual Report Analysis of JK LAKSHMI CEMENT

 

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