J KUMAR INFRA 2022-23 Annual Report Analysis

Wed, 25 Oct

J KUMAR INFRA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

J KUMAR INFRA Income Statement Analysis

• Operating income during the year rose 19.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY23 as against 14.3% in FY22.
• Depreciation charges increased by 5.4% and finance costs decreased by 0.8% YoY, respectively.
• Other income grew by 22.4% YoY.
• Net profit for the year grew by 33.3% YoY.
• Net profit margins during the year grew from 5.8% in FY22 to 6.5% in FY23.

J KUMAR INFRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	35,272	42,031	19.2%
Other income	Rs m	249	304	22.4%
Total Revenues	Rs m	35,521	42,336	19.2%
Gross profit	Rs m	5,046	5,971	18.3%
Depreciation	Rs m	1,468	1,547	5.4%
Interest	Rs m	1,000	992	-0.8%
Profit before tax	Rs m	2,827	3,736	32.2%
Tax	Rs m	768	992	29.1%
Profit after tax	Rs m	2,059	2,744	33.3%
Gross profit margin	%	14.3	14.2
Effective tax rate	%	27.2	26.5
Net profit margin	%	5.8	6.5

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J KUMAR INFRA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 18 billion as compared to Rs 17 billion in FY22, thereby witnessing an increase of 6.2%.
• Long-term debt stood at Rs 825 million as compared to Rs 315 million during FY22, a growth of 161.9%.
• Current assets rose 9% and stood at Rs 29 billion, while fixed assets rose 14% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 44 billion as against Rs 39 billion during FY22, thereby witnessing a growth of 10%.

J KUMAR INFRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,867	23,397	12.1
Current Liabilities	Rs m	17,112	18,165	6.2
Long-term Debt	Rs m	315	825	161.9
Total Liabilities	Rs m	39,437	43,558	10.4
Current assets	Rs m	26,549	28,874	8.8
Fixed Assets	Rs m	12,888	14,684	13.9
Total Assets	Rs m	39,437	43,558	10.4

J KUMAR INFRA Cash Flow Statement Analysis

• J KUMAR INFRA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 104.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -428 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -462 million from the Rs 653 million net cash flows seen during FY22.

J KUMAR INFRA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	3,805	1,829	-51.9%
Cash Flow from Investing Activities	Rs m	-913	-1,862	-
Cash Flow from Financing Activities	Rs m	-2,239	-428	-
Net Cash Flow	Rs m	653	-462	-

Current Valuations for J KUMAR INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.3, an improvement from the EPS of Rs 27.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 404.4, stands at 10.7 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	466.1	555.5
TTM Earnings per share	Rs	27.2	36.3
Diluted earnings per share	Rs	27.2	36.3
Price to Cash Flow	x	3.6	4.6
TTM P/E ratio	x	6.1	10.7
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	14,378	19,582
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for J KUMAR INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.6x during FY22. 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 4.8x during FY23, from 3.8x during FY22. 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 11.7% during FY23, from 9.9% during FY23. 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 19.5% during FY23, from 18.1% during FY22. 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 8.6% during FY23, from 7.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.6	1.6
Debtors’ Days	Days	919	991
Interest coverage	x	3.8	4.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	8.6
Return on equity	%	9.9	11.7
Return on capital employed	%	18.1	19.5

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 224.6 to Rs 404.4, registering a gain of Rs 179.8 or around 80.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,604.3 (down 0.8%). Over the last one year it has moved up from 3,387.7 to 4,604.3, a gain of 1,217 points (up 35.9%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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