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J KUMAR INFRA 2018-19 Annual Report Analysis

Sun, 31 Mar

J KUMAR INFRA 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.

J KUMAR INFRA Income Statement Analysis

• Operating income during the year rose 35.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY19 as against 15.7% in FY18.
• Depreciation charges increased by 40.5% and finance costs increased by 33.5% YoY, respectively.
• Other income declined by 1.4% YoY.
• Net profit for the year grew by 29.7% YoY.
• Net profit margins during the year declined from 6.7% in FY18 to 6.4% in FY19.

J KUMAR INFRA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	20,507	27,871	35.9%
Other income	Rs m	285	281	-1.4%
Total Revenues	Rs m	20,793	28,152	35.4%
Gross profit	Rs m	3,212	4,363	35.8%
Depreciation	Rs m	727	1,022	40.5%
Interest	Rs m	703	939	33.5%
Profit before tax	Rs m	2,067	2,683	29.8%
Tax	Rs m	701	912	30.1%
Profit after tax	Rs m	1,366	1,771	29.7%
Gross profit margin	%	15.7	15.7
Effective tax rate	%	33.9	34.0
Net profit margin	%	6.7	6.4

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J KUMAR INFRA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 17 billion as compared to Rs 18 billion in FY18, thereby witnessing an decrease of -2.7%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY18, a growth of 24.1%.
• Current assets rose 2% and stood at Rs 23 billion, while fixed assets rose 9% and stood at Rs 12 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 36 billion as against Rs 34 billion during FY18, thereby witnessing a growth of 4%.

J KUMAR INFRA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	15,088	16,675	10.5
Current Liabilities	Rs m	17,725	17,243	-2.7
Long-term Debt	Rs m	1,134	1,407	24.1
Total Liabilities	Rs m	34,236	35,694	4.3
Current assets	Rs m	22,945	23,435	2.1
Fixed Assets	Rs m	11,290	12,259	8.6
Total Assets	Rs m	34,236	35,694	4.3

J KUMAR INFRA Cash Flow Statement Analysis

• J KUMAR INFRA's cash flow from operating activities (CFO) during FY19 stood at Rs 826 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -15 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -271 million from the Rs -31 million net cash flows seen during FY18.

J KUMAR INFRA 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	2,648	826	-68.8%
Cash Flow from Investing Activities	Rs m	-3,229	-1,082	-
Cash Flow from Financing Activities	Rs m	550	-15	-
Net Cash Flow	Rs m	-31	-271	-

Current Valuations for J KUMAR INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.4, an improvement from the EPS of Rs 18.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 159.7, stands at 6.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	271.0	368.3
TTM Earnings per share	Rs	18.0	23.4
Diluted earnings per share	Rs	18.0	23.4
Price to Cash Flow	x	9.7	5.5
TTM P/E ratio	x	14.9	6.8
Price / Book Value ratio	x	1.4	0.9
Market Cap	Rs m	21,058	15,398
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for J KUMAR INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY19, from 1.3x 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 deteriorated and stood at 3.9x during FY19, from 3.9x 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 improved and stood at 10.6% during FY19, from 9.1% 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 20.0% during FY19, from 17.1% 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 improved and stood at 7.6% during FY19, from 6.0% 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	1.3	1.4
Debtors’ Days	Days	941	653
Interest coverage	x	3.9	3.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.0	7.6
Return on equity	%	9.1	10.6
Return on capital employed	%	17.1	20.0

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 down from Rs 268.8 to Rs 159.7, registering a loss of Rs 109.1 or around 40.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

Overall, the S&P BSE SENSEX is up 16.3% 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