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JAIN IRRIGATION 2020-21 Annual Report Analysis
Wed, 31 Mar

JAIN IRRIGATION 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.

JAIN IRRIGATION Income Statement Analysis

  • Operating income during the year fell 4.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 682.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.8% in FY21 as against 0.9% in FY20.
  • Depreciation charges increased by 1.2% and finance costs increased by 7.8% YoY, respectively.
  • Other income grew by 100.0% YoY.
  • Net profit for the year declined by 43.7% YoY.
  • Net profit margins during the year grew from 12.2% in FY20 to 7.2% in FY21.

JAIN IRRIGATION Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 59,226 56,669 -4.3%
Other income Rs m 732 1,464 100.0%
Total Revenues Rs m 59,958 58,133 -3.0%
Gross profit Rs m -562 3,270 -682.1%
Depreciation Rs m 3,468 3,509 1.2%
Interest Rs m 6,919 7,460 7.8%
Profit before tax Rs m -10,217 -6,235 -39.0%
Tax Rs m -3,005 -2,176 -27.6%
Profit after tax Rs m -7,212 -4,060 -43.7%
Gross profit margin % -0.9 5.8
Effective tax rate % 29.4 34.9
Net profit margin % -12.2 -7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

JAIN IRRIGATION Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 68 billion as compared to Rs 63 billion in FY20, thereby witnessing an increase of 7.7%.
  • Long-term debt down at Rs 25 billion as compared to Rs 28 billion during FY20, a fall of 9.9%.
  • Current assets fell 2% and stood at Rs 63 billion, while fixed assets fell 7% and stood at Rs 61 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 124 billion as against Rs 130 billion during FY20, thereby witnessing a fall of 4%.

JAIN IRRIGATION Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 34,711 29,679 -14.5
 
Current Liabilities Rs m 63,046 67,888 7.7
Long-term Debt Rs m 27,642 24,917 -9.9
Total Liabilities Rs m 130,181 124,453 -4.4
 
Current assets Rs m 64,603 63,463 -1.8
Fixed Assets Rs m 65,578 60,990 -7.0
Total Assets Rs m 130,181 124,453 -4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JAIN IRRIGATION Cash Flow Statement Analysis

  • JAIN IRRIGATION's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 1 billion net cash flows seen during FY20.

JAIN IRRIGATION 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 -6,747 2,703 -
Cash Flow from Investing Activities Rs m -2,583 3,029 -
Cash Flow from Financing Activities Rs m 10,456 -4,061 -
Net Cash Flow Rs m 1,127 1,671 48.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JAIN IRRIGATION

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.9, an improvement from the EPS of Rs -14.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 18.5, stands at -2.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at -13.8 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 114.9 109.9
TTM Earnings per share Rs -14.0 -7.9
Diluted earnings per share Rs -12.2 -6.9
Price to Cash Flow x -0.5 -13.8
TTM P/E ratio x -0.3 -2.9
Price / Book Value ratio x 0.5 0.3
Market Cap Rs m 16,741 7,621
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JAIN IRRIGATION

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY21, from 1.0x 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 improved and stood at 0.2x during FY21, from -0.5x 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 improved and stood at -13.7% during FY21, from -20.8% 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 2.2% during FY21, from -5.3% 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 improved and stood at 2.7% during FY21, from -0.2% 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 1.0 0.9
Debtors’ Days Days 174 160
Interest coverage x -0.5 0.2
Debt to equity ratio x 0.8 0.8
Return on assets % -0.2 2.7
Return on equity % -20.8 -13.7
Return on capital employed % -5.3 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 3.3 to Rs 18.5, registering a gain of Rs 15.2 or around 459.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of JAIN IRRIGATION?

JAIN IRRIGATION currently trades at Rs 35.9 per share. You can check out the latest share price performance of JAIN IRRIGATION here...

What was the revenue of JAIN IRRIGATION in FY21? How does it compare to earlier years?

The revenues of JAIN IRRIGATION stood at Rs 58,133 m in FY21, which was down -3.0% compared to Rs 59,958 m reported in FY20.

JAIN IRRIGATION's revenue has fallen from Rs 66,615 m in FY17 to Rs 58,133 m in FY21.

Over the past 5 years, the revenue of JAIN IRRIGATION has grown at a CAGR of -3.3%.

What was the net profit of JAIN IRRIGATION in FY21? How does it compare to earlier years?

The net loss of JAIN IRRIGATION stood at Rs -4,060 m in FY21, which was down -43.7% compared to Rs -7,212 m reported in FY20.

This compares to a net profit of Rs 2,505 m in FY19 and a net profit of Rs 2,177 m in FY18.

Over the past 5 years, JAIN IRRIGATION net profit has grown at a CAGR of NaN%.

What does the cash flow statement of JAIN IRRIGATION reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of JAIN IRRIGATION reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 2,703 m as compared to Rs -6,747 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 3,029 m as compared to Rs -2,583 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -4,061 m as compared to Rs 10,456 m in FY20.

Here's the cash flow statement of JAIN IRRIGATION for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations6,73813,1261,563-6,7472,703
From Investments-4,169-10,597-3,463-2,5833,029
From Financial Activity-5,200-1,6721,10510,456-4,061
Net Cashflow-2,631858-7951,1271,671

What does the Key Ratio analysis of JAIN IRRIGATION reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of JAIN IRRIGATION reveals:

  • Operating profit margins witnessed a fall and down at 5.8% in FY21 as against 0.9% in FY20.
  • Net profit margins grew from 12.2% in FY20 to 7.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.8 as compared to 0.8 in FY20.

Here's the ratio/financial analysis of JAIN IRRIGATION for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)14.212.210.8-0.95.8
Net Profit Margin (%)2.62.82.9-12.2-7.2
Debt to Equity Ratio (x)0.50.60.70.80.8

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