JMC PROJECTS 2020-21 Annual Report Analysis

Wed, 31 Mar

JMC PROJECTS 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.

JMC PROJECTS Income Statement Analysis

• Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY21 as against 11.1% in FY20.
• Depreciation charges increased by 16.4% and finance costs decreased by 1.4% YoY, respectively.
• Other income declined by 12.2% YoY.
• Net profit for the year declined by 75.5% YoY.
• Net profit margins during the year declined from 0.6% in FY20 to 0.2% in FY21.

JMC PROJECTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	38,663	39,416	1.9%
Other income	Rs m	641	563	-12.2%
Total Revenues	Rs m	39,304	39,979	1.7%
Gross profit	Rs m	4,296	4,387	2.1%
Depreciation	Rs m	1,553	1,807	16.4%
Interest	Rs m	2,825	2,787	-1.4%
Profit before tax	Rs m	560	356	-36.4%
Tax	Rs m	314	296	-5.7%
Profit after tax	Rs m	246	60	-75.5%
Gross profit margin	%	11.1	11.1
Effective tax rate	%	56.1	83.1
Net profit margin	%	0.6	0.2

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JMC PROJECTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 29 billion as compared to Rs 26 billion in FY20, thereby witnessing an increase of 14.3%.
• Long-term debt down at Rs 11 billion as compared to Rs 13 billion during FY20, a fall of 15.9%.
• Current assets rose 11% and stood at Rs 33 billion, while fixed assets fell 0% and stood at Rs 23 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 56 billion as against Rs 53 billion during FY20, thereby witnessing a growth of 6%.

JMC PROJECTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,388	4,899	-9.1
Current Liabilities	Rs m	25,791	29,480	14.3
Long-term Debt	Rs m	12,955	10,891	-15.9
Total Liabilities	Rs m	53,103	56,204	5.8
Current assets	Rs m	29,978	33,137	10.5
Fixed Assets	Rs m	23,125	23,067	-0.3
Total Assets	Rs m	53,103	56,204	5.8

JMC PROJECTS Cash Flow Statement Analysis

• JMC PROJECTS's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 33.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 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 1 billion from the Rs -265 million net cash flows seen during FY20.

JMC PROJECTS 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	4,788	6,404	33.7%
Cash Flow from Investing Activities	Rs m	-2,991	-2,172	-
Cash Flow from Financing Activities	Rs m	-2,062	-3,029	-
Net Cash Flow	Rs m	-265	1,202	-

Current Valuations for JMC PROJECTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 75.3, stands at 210.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 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	230.3	234.7
TTM Earnings per share	Rs	1.5	0.4
Diluted earnings per share	Rs	1.5	0.4
Price to Cash Flow	x	3.1	5.6
TTM P/E ratio	x	23.0	210.2
Price / Book Value ratio	x	2.8	2.1
Market Cap	Rs m	15,069	10,481
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for JMC PROJECTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY21, from 1.2x 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 1.1x during FY21, from 1.2x 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 1.2% during FY21, from 4.6% 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 improved and stood at 19.9% during FY21, from 18.5% 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 5.1% during FY21, from 5.8% 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	1.2	1.1
Debtors’ Days	Days	863	873
Interest coverage	x	1.2	1.1
Debt to equity ratio	x	2.4	2.2
Return on assets	%	5.8	5.1
Return on equity	%	4.6	1.2
Return on capital employed	%	18.5	19.9

To see how JMC PROJECTS has performed over the last 5 years, please visit here.

JMC PROJECTS Share Price Performance

Over the last one year, JMC PROJECTS share price has moved up from Rs 33.7 to Rs 75.3, registering a gain of Rs 41.6 or around 123.3%.

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 JMC PROJECTS and quarterly results for JMC PROJECTS)

Read: Latest Annual Report Analysis of JMC PROJECTS