JAIN IRRIGATION 2022-23 Annual Report Analysis

Mon, 21 Aug

JAIN IRRIGATION has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

JAIN IRRIGATION Income Statement Analysis

• Operating income during the year rose 21.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY23 as against 14.9% in FY22.
• Depreciation charges decreased by 2.3% and finance costs increased by 32.0% YoY, respectively.
• Other income grew by 124.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 2.8% in FY22 to 2.1% in FY23.

JAIN IRRIGATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	47,333	57,476	21.4%
Other income	Rs m	298	668	124.0%
Total Revenues	Rs m	47,632	58,144	22.1%
Gross profit	Rs m	7,050	5,490	-22.1%
Depreciation	Rs m	2,414	2,359	-2.3%
Interest	Rs m	3,555	4,692	32.0%
Profit before tax	Rs m	1,379	-893	NA
Tax	Rs m	41	315	671.1%
Profit after tax	Rs m	1,339	-1,208	NA
Gross profit margin	%	14.9	9.6
Effective tax rate	%	3.0	-35.3
Net profit margin	%	2.8	-2.1

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JAIN IRRIGATION Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 42 billion as compared to Rs 50 billion in FY22, thereby witnessing an decrease of -15.2%.
• Long-term debt down at Rs 14 billion as compared to Rs 36 billion during FY22, a fall of 61.1%.
• Current assets fell 16% and stood at Rs 54 billion, while fixed assets fell 7% and stood at Rs 55 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 109 billion as against Rs 124 billion during FY22, thereby witnessing a fall of 12%.

JAIN IRRIGATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	36,019	51,358	42.6
Current Liabilities	Rs m	49,712	42,145	-15.2
Long-term Debt	Rs m	35,644	13,860	-61.1
Total Liabilities	Rs m	124,016	109,058	-12.1
Current assets	Rs m	64,196	53,622	-16.5
Fixed Assets	Rs m	59,819	55,436	-7.3
Total Assets	Rs m	124,016	109,058	-12.1

JAIN IRRIGATION Cash Flow Statement Analysis

• JAIN IRRIGATION's cash flow from operating activities (CFO) during FY23 stood at Rs 450 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 31 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -34 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs -1 billion net cash flows seen during FY22.

JAIN IRRIGATION Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	4,760	450	-90.5%
Cash Flow from Investing Activities	Rs m	-1,944	31,378	-
Cash Flow from Financing Activities	Rs m	-3,852	-33,648	-
Net Cash Flow	Rs m	-1,036	-1,821	-

Current Valuations for JAIN IRRIGATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.9, an decline from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.8, stands at -21.5 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 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	77.4	92.1
TTM Earnings per share	Rs	2.2	-1.9
Diluted earnings per share	Rs	2.0	-1.8
Price to Cash Flow	x	7.3	20.3
TTM P/E ratio	x	8.1	-21.5
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	21,309	23,320
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAIN IRRIGATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.3x during FY22. 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 0.8x during FY23, from 1.4x during FY22. 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 declined and down at -2.4% during FY23, from 3.7% during FY23. 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 5.8% during FY23, from 6.9% during FY22. 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 declined and down at 3.2% during FY23, from 3.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	181	139
Interest coverage	x	1.4	0.8
Debt to equity ratio	x	1.0	0.3
Return on assets	%	3.9	3.2
Return on equity	%	3.7	-2.4
Return on capital employed	%	6.9	5.8

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 38.7 to Rs 57.8, registering a gain of Rs 19.1 or around 49.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 43,451.4 (up 0.6%). Over the last one year it has moved up from 31,496.7 to 43,451.4, a gain of 11,955 points (up 38.0%).

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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