JAIN IRRIGATION 2018-19 Annual Report Analysis

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JAIN IRRIGATION 2018-19 Annual Report Analysis
Thu, 19 Sep

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 9.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 2.7% 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 14.9% 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 78,432 85,769 9.4%
Other income Rs m 1,608 2,714 68.7%
Total Revenues Rs m 80,041 88,483 10.5%
Gross profit Rs m 9,555 9,294 -2.7%
Depreciation Rs m 3,386 3,129 -7.6%
Interest Rs m 4,786 5,137 7.3%
Profit before tax Rs m 2,992 3,742 25.1%
Tax Rs m 779 1,199 54.0%
Profit after tax Rs m 2,213 2,542 14.9%
Gross profit margin % 12.2 10.8
Effective tax rate % 26.0 32.1
Net profit margin % 2.8 2.9
* 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 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 5% and stood at Rs 58 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 129 billion as against Rs 123 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 122,679 128,788 5.0
 
Current assets Rs m 63,899 66,211 3.6
Fixed Assets Rs m 54,890 57,849 5.4
Total Assets Rs m 122,679 128,788 5.0
* 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 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 1,564 -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 -
* 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 5.1, an improvement from the EPS of Rs 4.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 22.3, stands at 5.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.7 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 158.0 172.8
TTM Earnings per share Rs 4.5 5.1
Diluted earnings per share Rs 5.0 5.7
Price to Cash Flow x 2.0 1.7
TTM P/E ratio x 5.8 5.2
Price / Book Value ratio x 1.3 1.0
Market Cap Rs m 11,044 9,859
Dividends per share (Unadj.) Rs 1.0 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 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 5.8% during FY19, from 5.1% 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 12.1% 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 % 5.1 5.8
Return on capital employed % 11.1 12.1
* 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 down from Rs 80.4 to Rs 22.3, registering a loss of Rs 58.1 or around 72.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,786.8 (down 1.0%). Over the last one year it has moved down from 18,168.6 to 16,786.8, a loss of 1,382 points (down 7.6%).

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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

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