JK TYRE & IND 2017-18 Annual Report Analysis

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JK TYRE & IND 2017-18 Annual Report Analysis
Fri, 21 Dec

JK TYRE & IND 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 TYRE & IND Income Statement Analysis

  • Operating income during the year rose 7.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 34.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY18 as against 14.7% in FY17.
  • Depreciation charges increased by 2.8% and finance costs increased by 5.7% YoY, respectively.
  • Other income grew by 123.3% YoY.
  • Net profit for the year declined by 83.4% YoY.
  • Net profit margins during the year declined from 4.9% in FY17 to 0.8% in FY18.

JK TYRE & IND Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 76,894 82,721 7.6%
Other income Rs m 654 1,461 123.3%
Total Revenues Rs m 77,548 84,182 8.6%
Gross profit Rs m 11,324 7,371 -34.9%
Depreciation Rs m 2,913 2,995 2.8%
Interest Rs m 4,404 4,655 5.7%
Profit before tax Rs m 4,662 1,182 -74.6%
Tax Rs m 1,554 439 -71.8%
Profit after tax Rs m 3,811 633 -83.4%
Gross profit margin % 14.7 8.9
Effective tax rate % 33.3 37.1
Net profit margin % 4.9 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JK TYRE & IND Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 45 billion as compared to Rs 39 billion in FY17, thereby witnessing an increase of 15.7%.
  • Long-term debt down at Rs 31 billion as compared to Rs 36 billion during FY17, a fall of 12.4%.
  • Current assets fell 7% and stood at Rs 38 billion, while fixed assets rose 1% and stood at Rs 62 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 106 billion as against Rs 104 billion during FY17, thereby witnessing a growth of 1%.

JK TYRE & IND Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 19,648 19,611 -0.2
 
Current Liabilities Rs m 38,666 44,717 15.7
Long-term Debt Rs m 35,703 31,265 -12.4
Total Liabilities Rs m 104,352 105,675 1.3
 
Current assets Rs m 40,578 37,744 -7.0
Fixed Assets Rs m 61,130 61,895 1.3
Total Assets Rs m 104,352 105,675 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JK TYRE & IND Cash Flow Statement Analysis

  • JK TYRE & IND's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion, an improvement of 503.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion 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 -2 billion from the Rs 1 billion net cash flows seen during FY17.

JK TYRE & IND 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 1,057 6,374 503.1%
Cash Flow from Investing Activities Rs m -8,353 -3,945 -
Cash Flow from Financing Activities Rs m 8,300 -4,086 -
Net Cash Flow Rs m 1,283 -1,651 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JK TYRE & IND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 16.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 107.3, stands at 8.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.7 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 339.0 364.7
TTM Earnings per share Rs 16.8 2.8
Diluted earnings per share Rs 16.8 2.8
Price to Cash Flow x 3.6 6.7
TTM P/E ratio x 8.6 8.6
Price / Book Value ratio x 1.4 1.9
Market Cap Rs m 24,325 24,325
Dividends per share (Unadj.) Rs 2.5 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JK TYRE & IND

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 1.0x 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 1.3x during FY18, from 2.1x 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 3.2% during FY18, from 19.4% 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 11.3% during FY18, from 17.6% 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 5.0% during FY18, from 7.9% 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 1.0 0.8
Debtors’ Days Days 85 68
Interest coverage x 2.1 1.3
Debt to equity ratio x 1.8 1.6
Return on assets % 7.9 5.0
Return on equity % 19.4 3.2
Return on capital employed % 17.6 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how JK TYRE & IND has performed over the last 5 years, please visit here.

JK TYRE & IND Share Price Performance

Over the last one year, JK TYRE & IND share price has moved up from Rs 144.0 to Rs 107.3, registering a loss of Rs 36.7 or around 25.5%.

Overall, the S&P BSE SENSEX is up 7.8% over the year.

(To know more, check out historical annual results for JK TYRE & IND and quarterly results for JK TYRE & IND)

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Related Views on News

JK TYRE & IND Announces Quarterly Results (2QFY21); Net Profit Down 35.4% (Quarterly Result Update)

Oct 23, 2020 | Updated on Oct 23, 2020

For the quarter ended September 2020, JK TYRE & IND has posted a net profit of Rs 1 bn (down 35.4% YoY). Sales on the other hand came in at Rs 23 bn (up 5.6% YoY). Read on for a complete analysis of JK TYRE & IND's quarterly results.

JK TYRE & IND Announces Quarterly Results (2QFY20); Net Profit Up 249.1% (Quarterly Result Update)

Nov 5, 2019 | Updated on Nov 5, 2019

For the quarter ended September 2019, JK TYRE & IND has posted a net profit of Rs 2 bn (up 249.1% YoY). Sales on the other hand came in at Rs 22 bn (down 13.6% YoY). Read on for a complete analysis of JK TYRE & IND's quarterly results.

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