JAIPRAKASH ASSO 2017-18 Annual Report Analysis

Sat, 31 Mar

JAIPRAKASH ASSO 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.

JAIPRAKASH ASSO Income Statement Analysis

• Operating income during the year fell 43.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 185.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.9% in FY18 as against 10.5% in FY17.
• Depreciation charges decreased by 58.6% and finance costs decreased by 66.7% YoY, respectively.
• Other income grew by 0.9% YoY.
• Net profit for the year declined by 79.5% YoY.
• Net profit margins during the year grew from 71.0% in FY17 to 25.6% in FY18.

JAIPRAKASH ASSO Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	132,585	75,277	-43.2%
Other income	Rs m	1,443	1,456	0.9%
Total Revenues	Rs m	134,028	76,733	-42.7%
Gross profit	Rs m	-13,903	11,947	-185.9%
Depreciation	Rs m	18,883	7,821	-58.6%
Interest	Rs m	74,686	24,863	-66.7%
Profit before tax	Rs m	-106,028	-19,281	-81.8%
Tax	Rs m	-11,901	-8	-99.9%
Profit after tax	Rs m	-94,127	-19,273	-79.5%
Gross profit margin	%	-10.5	15.9
Effective tax rate	%	11.2	0.0
Net profit margin	%	-71.0	-25.6

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JAIPRAKASH ASSO Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 159 billion as compared to Rs 287 billion in FY17, thereby witnessing an decrease of -44.7%.
• Long-term debt down at Rs 257 billion as compared to Rs 266 billion during FY17, a fall of 3.3%.
• Current assets rose 14% and stood at Rs 209 billion, while fixed assets fell 34% and stood at Rs 283 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 492 billion as against Rs 611 billion during FY17, thereby witnessing a fall of 19%.

JAIPRAKASH ASSO Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	38,103	46,787	22.8
Current Liabilities	Rs m	287,032	158,667	-44.7
Long-term Debt	Rs m	265,779	257,059	-3.3
Total Liabilities	Rs m	610,868	492,109	-19.4
Current assets	Rs m	183,033	209,049	14.2
Fixed Assets	Rs m	427,835	283,061	-33.8
Total Assets	Rs m	610,868	492,109	-19.4

JAIPRAKASH ASSO Cash Flow Statement Analysis

• JAIPRAKASH ASSO's cash flow from operating activities (CFO) during FY18 stood at Rs -9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 151 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -142 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 470 million from the Rs -2 billion net cash flows seen during FY17.

JAIPRAKASH ASSO 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	57,932	-8,553	-
Cash Flow from Investing Activities	Rs m	-12,921	151,220	-
Cash Flow from Financing Activities	Rs m	-45,544	-142,197	-
Net Cash Flow	Rs m	-1,872	470	-

Current Valuations for JAIPRAKASH ASSO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.9, an improvement from the EPS of Rs -38.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.0, stands at 13.2 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 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -4.2 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	54.5	30.9
TTM Earnings per share	Rs	-38.7	-7.9
Diluted earnings per share	Rs	-38.3	-7.9
Price to Cash Flow	x	-0.4	-4.2
TTM P/E ratio	x	-0.8	13.2
Price / Book Value ratio	x	0.7	1.0
Market Cap	Rs m	26,879	48,102
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAIPRAKASH ASSO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 0.6x 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 improved and stood at 0.2x during FY18, from -0.4x 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 -41.2% during FY18, from -247.0% 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 1.8% during FY18, from -10.3% 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 1.1% during FY18, from -3.2% 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	0.6	1.3
Debtors’ Days	Days	513	941
Interest coverage	x	-0.4	0.2
Debt to equity ratio	x	7.0	5.5
Return on assets	%	-3.2	1.1
Return on equity	%	-247.0	-41.2
Return on capital employed	%	-10.3	1.8

To see how JAIPRAKASH ASSO has performed over the last 5 years, please visit here.

JAIPRAKASH ASSO Share Price Performance

Over the last one year, JAIPRAKASH ASSO share price has moved up from Rs 13.8 to Rs 19.0, registering a gain of Rs 5.2 or around 37.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for JAIPRAKASH ASSO and quarterly results for JAIPRAKASH ASSO)

Read: Latest Annual Report Analysis of JAIPRAKASH ASSO