JK LAKSHMI CEMENT 2020-21 Annual Report Analysis

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JK LAKSHMI CEMENT 2020-21 Annual Report Analysis
Mon, 6 Sep

JK LAKSHMI 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 LAKSHMI CEMENT Income Statement Analysis

  • Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 17.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY21 as against 17.6% in FY20.
  • Depreciation charges increased by 2.5% and finance costs decreased by 14.7% YoY, respectively.
  • Other income grew by 57.9% YoY.
  • Net profit for the year grew by 66.5% YoY.
  • Net profit margins during the year grew from 5.7% in FY20 to 8.8% in FY21.

JK LAKSHMI CEMENT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 43,641 47,274 8.3%
Other income Rs m 460 726 57.9%
Total Revenues Rs m 44,101 48,001 8.8%
Gross profit Rs m 7,678 9,007 17.3%
Depreciation Rs m 2,198 2,253 2.5%
Interest Rs m 2,250 1,920 -14.7%
Profit before tax Rs m 3,690 5,561 50.7%
Tax Rs m 1,161 1,349 16.3%
Profit after tax Rs m 2,530 4,211 66.5%
Gross profit margin % 17.6 19.1
Effective tax rate % 31.4 24.3
Net profit margin % 5.7 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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JK LAKSHMI CEMENT Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 17 billion in FY20, thereby witnessing an decrease of -12.8%.
  • Long-term debt down at Rs 13 billion as compared to Rs 14 billion during FY20, a fall of 7.9%.
  • Current assets rose 18% and stood at Rs 15 billion, while fixed assets fell 2% and stood at Rs 38 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 53 billion as against Rs 51 billion during FY20, thereby witnessing a growth of 3%.

JK LAKSHMI CEMENT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 16,869 20,946 24.2
 
Current Liabilities Rs m 17,021 14,837 -12.8
Long-term Debt Rs m 13,641 12,560 -7.9
Total Liabilities Rs m 51,239 52,862 3.2
 
Current assets Rs m 12,557 14,820 18.0
Fixed Assets Rs m 38,663 38,020 -1.7
Total Assets Rs m 51,239 52,862 3.2
* 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 FY21 stood at Rs 10 billion, an improvement of 58.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 118.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 453 million from the Rs 2 million net cash flows seen during FY20.

JK LAKSHMI 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 6,495 10,318 58.9%
Cash Flow from Investing Activities Rs m -1,997 -4,356 -
Cash Flow from Financing Activities Rs m -4,496 -5,510 -
Net Cash Flow Rs m 2 453 22,555.0%
* 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 35.8, an improvement from the EPS of Rs 21.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 713.0, stands at 16.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.0 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 370.9 401.8
TTM Earnings per share Rs 21.5 35.8
Diluted earnings per share Rs 21.5 35.8
Price to Cash Flow x 17.7 13.0
TTM P/E ratio x 16.6 16.6
Price / Book Value ratio x 2.0 1.8
Market Cap Rs m 83,899 83,899
Dividends per share (Unadj.) Rs 2.5 3.8
* 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 improved and stood at 1.0x during FY21, from 0.7x 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 3.9x during FY21, from 2.6x 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 20.1% during FY21, from 15.0% 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 22.3% during FY21, from 19.5% 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 11.6% during FY21, from 9.3% 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 0.7 1.0
Debtors’ Days Days 1 0
Interest coverage x 2.6 3.9
Debt to equity ratio x 0.8 0.6
Return on assets % 9.3 11.6
Return on equity % 15.0 20.1
Return on capital employed % 19.5 22.3
* 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 263.7 to Rs 713.0, registering a gain of Rs 449.3 or around 170.4%.

Overall, the S&P BSE SENSEX is up 49.2% over the year.

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

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