J KUMAR INFRA 2020-21 Annual Report Analysis

Wed, 31 Mar

J KUMAR INFRA 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.

J KUMAR INFRA Income Statement Analysis

• Operating income during the year fell 13.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY21 as against 14.4% in FY20.
• Depreciation charges increased by 13.8% and finance costs increased by 6.9% YoY, respectively.
• Other income declined by 10.6% YoY.
• Net profit for the year declined by 65.2% YoY.
• Net profit margins during the year declined from 6.2% in FY20 to 2.5% in FY21.

J KUMAR INFRA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	29,705	25,708	-13.5%
Other income	Rs m	283	253	-10.6%
Total Revenues	Rs m	29,988	25,961	-13.4%
Gross profit	Rs m	4,289	3,114	-27.4%
Depreciation	Rs m	1,263	1,437	13.8%
Interest	Rs m	977	1,044	6.9%
Profit before tax	Rs m	2,333	886	-62.0%
Tax	Rs m	497	247	-50.4%
Profit after tax	Rs m	1,836	639	-65.2%
Gross profit margin	%	14.4	12.1
Effective tax rate	%	21.3	27.8
Net profit margin	%	6.2	2.5

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J KUMAR INFRA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 17 billion as compared to Rs 17 billion in FY20, thereby witnessing an decrease of -2.8%.
• Long-term debt down at Rs 580 million as compared to Rs 978 million during FY20, a fall of 40.6%.
• Current assets fell 1% and stood at Rs 24 billion, while fixed assets fell 1% and stood at Rs 13 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 37 billion during FY20, thereby witnessing a fall of 1%.

J KUMAR INFRA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,310	18,869	3.1
Current Liabilities	Rs m	17,033	16,550	-2.8
Long-term Debt	Rs m	978	580	-40.6
Total Liabilities	Rs m	36,795	36,450	-0.9
Current assets	Rs m	23,764	23,603	-0.7
Fixed Assets	Rs m	13,031	12,847	-1.4
Total Assets	Rs m	36,795	36,450	-0.9

J KUMAR INFRA Cash Flow Statement Analysis

• J KUMAR INFRA's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 42.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -134 million from the Rs -113 million net cash flows seen during FY20.

J KUMAR INFRA 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	2,588	3,687	42.4%
Cash Flow from Investing Activities	Rs m	-1,226	-1,113	-
Cash Flow from Financing Activities	Rs m	-1,475	-2,708	-
Net Cash Flow	Rs m	-113	-134	-

Current Valuations for J KUMAR INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an decline from the EPS of Rs 24.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 194.1, stands at 23.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 5.2 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	392.6	339.7
TTM Earnings per share	Rs	24.3	8.4
Diluted earnings per share	Rs	24.3	8.4
Price to Cash Flow	x	1.8	5.2
TTM P/E ratio	x	3.1	23.0
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	9,314	10,873
Dividends per share (Unadj.)	Rs	1.3	1.0

Ratio Analysis for J KUMAR INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.4x 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 deteriorated and stood at 1.8x during FY21, from 3.4x 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 declined and down at 3.4% during FY21, from 10.0% 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 declined and down at 9.9% during FY21, from 17.2% 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 declined and down at 4.6% during FY21, from 7.6% 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	1.4	1.4
Debtors’ Days	Days	792	880
Interest coverage	x	3.4	1.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	7.6	4.6
Return on equity	%	10.0	3.4
Return on capital employed	%	17.2	9.9

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 74.8 to Rs 194.1, registering a gain of Rs 119.4 or around 159.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% 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