JMC PROJECTS 2021-22 Annual Report Analysis

Thu, 28 Jul

JMC PROJECTS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JMC PROJECTS Income Statement Analysis

• Operating income during the year rose 40.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY22 as against 11.1% in FY21.
• Depreciation charges increased by 14.5% and finance costs increased by 7.5% YoY, respectively.
• Other income grew by 25.3% YoY.
• Net profit for the year grew by 533.6% YoY.
• Net profit margins during the year grew from 0.2% in FY21 to 0.7% in FY22.

JMC PROJECTS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	39,416	55,188	40.0%
Other income	Rs m	563	706	25.3%
Total Revenues	Rs m	39,979	55,894	39.8%
Gross profit	Rs m	4,387	4,172	-4.9%
Depreciation	Rs m	1,807	2,070	14.5%
Interest	Rs m	2,787	2,997	7.5%
Profit before tax	Rs m	356	-188	-152.9%
Tax	Rs m	296	-569	-292.2%
Profit after tax	Rs m	60	381	533.6%
Gross profit margin	%	11.1	7.6
Effective tax rate	%	83.1	302.0
Net profit margin	%	0.2	0.7

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JMC PROJECTS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 36 billion as compared to Rs 29 billion in FY21, thereby witnessing an increase of 20.8%.
• Long-term debt down at Rs 9 billion as compared to Rs 11 billion during FY21, a fall of 14.3%.
• Current assets rose 13% and stood at Rs 38 billion, while fixed assets rose 6% and stood at Rs 24 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 62 billion as against Rs 56 billion during FY21, thereby witnessing a growth of 10%.

JMC PROJECTS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,899	5,268	7.5
Current Liabilities	Rs m	29,480	35,620	20.8
Long-term Debt	Rs m	10,891	9,337	-14.3
Total Liabilities	Rs m	56,204	61,862	10.1
Current assets	Rs m	33,137	37,506	13.2
Fixed Assets	Rs m	23,067	24,356	5.6
Total Assets	Rs m	56,204	61,862	10.1

JMC PROJECTS Cash Flow Statement Analysis

• JMC PROJECTS's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 57.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -501 million from the Rs 1 billion net cash flows seen during FY21.

JMC PROJECTS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	6,404	4,680	-26.9%
Cash Flow from Investing Activities	Rs m	-2,172	-3,423	-
Cash Flow from Financing Activities	Rs m	-3,029	-1,758	-
Net Cash Flow	Rs m	1,202	-501	-

Current Valuations for JMC PROJECTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.7, stands at 35.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	234.7	328.7
TTM Earnings per share	Rs	0.4	2.3
Diluted earnings per share	Rs	0.4	2.3
Price to Cash Flow	x	6.8	7.0
TTM P/E ratio	x	210.2	35.1
Price / Book Value ratio	x	2.1	3.3
Market Cap	Rs m	10,481	17,160
Dividends per share (Unadj.)	Rs	0.7	1.0

Ratio Analysis for JMC PROJECTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY22, from 1.1x during FY21. 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 0.9x during FY22, from 1.1x during FY21. 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 7.2% during FY22, from 1.2% during FY22. 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 19.2% during FY22, from 19.9% during FY21. 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 5.5% during FY22, from 5.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	873	667
Interest coverage	x	1.1	0.9
Debt to equity ratio	x	2.2	1.8
Return on assets	%	5.1	5.5
Return on equity	%	1.2	7.2
Return on capital employed	%	19.9	19.2

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 down from Rs 120.8 to Rs 79.7, registering a loss of Rs 41.2 or around 34.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,514.6 (up 0.8%). Over the last one year it has moved up from 3,120.3 to 3,514.6, a gain of 394 points (up 12.6%).

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for JMC PROJECTS and quarterly results for JMC PROJECTS)