JAIN IRRIGATION 2017-18 Annual Report Analysis

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JAIN IRRIGATION 2017-18 Annual Report Analysis
Tue, 18 Dec

JAIN IRRIGATION has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JAIN IRRIGATION Income Statement Analysis

  • Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.3% in FY18 as against 13.9% in FY17.
  • Depreciation charges increased by 12.3% and finance costs increased by 4.2% YoY, respectively.
  • Other income declined by 6.4% YoY.
  • Net profit for the year grew by 25.6% YoY.
  • Net profit margins during the year grew from 2.6% in FY17 to 2.8% in FY18.

JAIN IRRIGATION Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 67,698 79,468 17.4%
Other income Rs m 612 573 -6.4%
Total Revenues Rs m 68,310 80,041 17.2%
Gross profit Rs m 9,425 10,591 12.4%
Depreciation Rs m 3,014 3,386 12.3%
Interest Rs m 4,594 4,786 4.2%
Profit before tax Rs m 2,430 2,992 23.1%
Tax Rs m 667 779 16.7%
Profit after tax Rs m 1,762 2,213 25.6%
Gross profit margin % 13.9 13.3
Effective tax rate % 27.5 26.0
Net profit margin % 2.6 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JAIN IRRIGATION Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 46 billion as compared to Rs 41 billion in FY17, thereby witnessing an increase of 12.7%.
  • Long-term debt stood at Rs 26 billion as compared to Rs 22 billion during FY17, a growth of 19.3%.
  • Current assets rose 11% and stood at Rs 64 billion, while fixed assets rose 6% and stood at Rs 47 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 123 billion as against Rs 112 billion during FY17, thereby witnessing a growth of 10%.

JAIN IRRIGATION Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 41,578 43,511 4.6
 
Current Liabilities Rs m 40,538 45,673 12.7
Long-term Debt Rs m 22,199 26,489 19.3
Total Liabilities Rs m 111,555 122,679 10.0
 
Current assets Rs m 57,798 63,899 10.6
Fixed Assets Rs m 44,214 46,758 5.8
Total Assets Rs m 111,555 122,679 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JAIN IRRIGATION Cash Flow Statement Analysis

  • JAIN IRRIGATION's cash flow from operating activities (CFO) during FY18 stood at Rs 13 billion, an improvement of 94.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -11 billion, an improvement of 154.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 68% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 858 million from the Rs -3 billion net cash flows seen during FY17.

JAIN IRRIGATION Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 6,738 13,126 94.8%
Cash Flow from Investing Activities Rs m -4,169 -10,597 -
Cash Flow from Financing Activities Rs m -5,200 -1,672 -
Net Cash Flow Rs m -2,631 858 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JAIN IRRIGATION

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an improvement from the EPS of Rs 3.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 65.2, stands at 16.0 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 5.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 147.1 160.1
TTM Earnings per share Rs 3.8 4.5
Diluted earnings per share Rs 4.0 5.0
Price to Cash Flow x 6.3 5.2
TTM P/E ratio x 16.6 16.0
Price / Book Value ratio x 1.0 1.3
Market Cap Rs m 30,003 28,891
Dividends per share (Unadj.) Rs 0.8 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JAIN IRRIGATION

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.4x during FY17. 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 1.6x during FY18, from 1.5x during FY17. 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 5.1% during FY18, from 4.2% during FY18. 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 11.1% during FY18, from 11.0% during FY17. 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 5.7% during FY18, from 5.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.4 1.4
Debtors’ Days Days 123 116
Interest coverage x 1.5 1.6
Debt to equity ratio x 0.5 0.6
Return on assets % 5.7 5.7
Return on equity % 4.2 5.1
Return on capital employed % 11.0 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how JAIN IRRIGATION has performed over the last 5 years, please visit here.

JAIN IRRIGATION Share Price Performance

Over the last one year, JAIN IRRIGATION share price has moved up from Rs 109.3 to Rs 65.2, registering a loss of Rs 44.1 or around 40.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,601.7 (up 0.7%). Over the last one year it has moved up from 18,447.1 to 18,601.7, a gain of 155 points (up 0.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for JAIN IRRIGATION and quarterly results for JAIN IRRIGATION)

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