JAIN IRRIGATION 2018-19 Annual Report Analysis

Sun, 31 Mar

JAIN IRRIGATION has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

JAIN IRRIGATION Income Statement Analysis

• Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY19 as against 12.2% in FY18.
• Depreciation charges decreased by 7.6% and finance costs increased by 7.3% YoY, respectively.
• Other income grew by 68.7% YoY.
• Net profit for the year grew by 15.1% YoY.
• Net profit margins during the year grew from 2.8% in FY18 to 2.9% in FY19.

JAIN IRRIGATION Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	77,909	85,769	10.1%
Other income	Rs m	1,608	2,714	68.7%
Total Revenues	Rs m	79,518	88,483	11.3%
Gross profit	Rs m	9,519	9,256	-2.8%
Depreciation	Rs m	3,386	3,129	-7.6%
Interest	Rs m	4,786	5,137	7.3%
Profit before tax	Rs m	2,956	3,704	25.3%
Tax	Rs m	779	1,199	54.0%
Profit after tax	Rs m	2,177	2,505	15.1%
Gross profit margin	%	12.2	10.8
Effective tax rate	%	26.4	32.4
Net profit margin	%	2.8	2.9

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

JAIN IRRIGATION Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 48 billion as compared to Rs 46 billion in FY18, thereby witnessing an increase of 5.1%.
• Long-term debt stood at Rs 29 billion as compared to Rs 26 billion during FY18, a growth of 11.0%.
• Current assets rose 4% and stood at Rs 66 billion, while fixed assets rose 6% and stood at Rs 61 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 128 billion as against Rs 122 billion during FY18, thereby witnessing a growth of 5%.

JAIN IRRIGATION Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	43,511	44,131	1.4
Current Liabilities	Rs m	45,673	47,980	5.1
Long-term Debt	Rs m	26,489	29,395	11.0
Total Liabilities	Rs m	121,520	127,580	5.0
Current assets	Rs m	63,899	66,228	3.6
Fixed Assets	Rs m	57,621	61,351	6.5
Total Assets	Rs m	121,520	127,580	5.0

JAIN IRRIGATION Cash Flow Statement Analysis

• JAIN IRRIGATION's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 1 billion, an improvement of 166% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -795 million from the Rs 858 million net cash flows seen during FY18.

JAIN IRRIGATION Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	13,126	1,563	-88.1%
Cash Flow from Investing Activities	Rs m	-10,597	-3,463	-
Cash Flow from Financing Activities	Rs m	-1,672	1,105	-
Net Cash Flow	Rs m	858	-795	-

Current Valuations for JAIN IRRIGATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 59.0, stands at 13.8 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	151.1	166.3
TTM Earnings per share	Rs	4.2	4.9
Diluted earnings per share	Rs	3.7	4.2
Price to Cash Flow	x	11.4	7.7
TTM P/E ratio	x	29.0	13.8
Price / Book Value ratio	x	1.4	1.0
Market Cap	Rs m	60,126	43,148
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for JAIN IRRIGATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY19, from 1.4x during FY18. 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 1.7x during FY19, from 1.6x during FY18. 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 5.7% during FY19, from 5.0% during FY19. 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 12.0% during FY19, from 11.1% during FY18. 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 6.0% during FY19, from 5.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	118	127
Interest coverage	x	1.6	1.7
Debt to equity ratio	x	0.6	0.7
Return on assets	%	5.7	6.0
Return on equity	%	5.0	5.7
Return on capital employed	%	11.1	12.0

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 down from Rs 106.6 to Rs 59.0, registering a loss of Rs 47.6 or around 44.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of JAIN IRRIGATION