J KUMAR INFRA 2017-18 Annual Report Analysis

Sat, 31 Mar

J KUMAR INFRA 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.

J KUMAR INFRA Income Statement Analysis

• Operating income during the year rose 30.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY18 as against 15.9% in FY17.
• Depreciation charges increased by 30.8% and finance costs increased by 6.5% YoY, respectively.
• Other income declined by 5.5% YoY.
• Net profit for the year grew by 29.3% YoY.
• Net profit margins during the year declined from 6.7% in FY17 to 6.7% in FY18.

J KUMAR INFRA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	15,728	20,507	30.4%
Other income	Rs m	302	285	-5.5%
Total Revenues	Rs m	16,030	20,793	29.7%
Gross profit	Rs m	2,494	3,212	28.8%
Depreciation	Rs m	556	727	30.8%
Interest	Rs m	661	703	6.5%
Profit before tax	Rs m	1,578	2,067	30.9%
Tax	Rs m	522	701	34.2%
Profit after tax	Rs m	1,056	1,366	29.3%
Gross profit margin	%	15.9	15.7
Effective tax rate	%	33.1	33.9
Net profit margin	%	6.7	6.7

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J KUMAR INFRA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 18 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 33.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 333 million during FY17, a growth of 240.0%.
• Current assets rose 16% and stood at Rs 23 billion, while fixed assets rose 42% and stood at Rs 11 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 34 billion as against Rs 28 billion during FY17, thereby witnessing a growth of 24%.

J KUMAR INFRA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	13,890	15,088	8.6
Current Liabilities	Rs m	13,278	17,725	33.5
Long-term Debt	Rs m	333	1,134	240.0
Total Liabilities	Rs m	27,689	34,236	23.6
Current assets	Rs m	19,725	22,945	16.3
Fixed Assets	Rs m	7,964	11,290	41.8
Total Assets	Rs m	27,689	34,236	23.6

J KUMAR INFRA Cash Flow Statement Analysis

• J KUMAR INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 60.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 550 million, an improvement of 4,873% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -31 million from the Rs 659 million net cash flows seen during FY17.

J KUMAR INFRA 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	2,677	2,648	-1.1%
Cash Flow from Investing Activities	Rs m	-2,007	-3,229	-
Cash Flow from Financing Activities	Rs m	-12	550	-
Net Cash Flow	Rs m	659	-31	-

Current Valuations for J KUMAR INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.0, an improvement from the EPS of Rs 14.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 268.8, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 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	207.9	271.0
TTM Earnings per share	Rs	14.0	18.0
Diluted earnings per share	Rs	14.0	18.0
Price to Cash Flow	x	12.2	10.1
TTM P/E ratio	x	18.7	14.9
Price / Book Value ratio	x	1.1	1.4
Market Cap	Rs m	15,485	21,058
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for J KUMAR INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY18, from 1.5x 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 improved and stood at 3.9x during FY18, from 3.4x 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 improved and stood at 9.1% during FY18, from 7.6% 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 improved and stood at 17.1% during FY18, from 15.7% 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 6.0% during FY18, from 6.2% 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	1.5	1.3
Debtors’ Days	Days	1,177	941
Interest coverage	x	3.4	3.9
Debt to equity ratio	x	0.0	0.1
Return on assets	%	6.2	6.0
Return on equity	%	7.6	9.1
Return on capital employed	%	15.7	17.1

To see how J KUMAR INFRA has performed over the last 5 years, please visit here.

J KUMAR INFRA Share Price Performance

Over the last one year, J KUMAR INFRA share price has moved up from Rs 260.1 to Rs 268.8, registering a gain of Rs 8.8 or around 3.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

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

(To know more, check out historical annual results for J KUMAR INFRA and quarterly results for J KUMAR INFRA)

Read: Latest Annual Report Analysis of J KUMAR INFRA