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JUBILANT INDUSTRIES 2022-23 Annual Report Analysis

Thu, 26 Oct

JUBILANT INDUSTRIES 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.

JUBILANT INDUSTRIES Income Statement Analysis

• Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY23 as against 8.6% in FY22.
• Depreciation charges increased by 12.0% and finance costs increased by 40.8% YoY, respectively.
• Other income grew by 195.1% YoY.
• Net profit for the year declined by 3.3% YoY.
• Net profit margins during the year declined from 4.7% in FY22 to 3.6% in FY23.

JUBILANT INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,658	14,729	26.3%
Other income	Rs m	10	29	195.1%
Total Revenues	Rs m	11,668	14,758	26.5%
Gross profit	Rs m	1,003	1,049	4.6%
Depreciation	Rs m	127	142	12.0%
Interest	Rs m	152	214	40.8%
Profit before tax	Rs m	734	722	-1.7%
Tax	Rs m	188	194	3.2%
Profit after tax	Rs m	546	528	-3.3%
Gross profit margin	%	8.6	7.1
Effective tax rate	%	25.6	26.9
Net profit margin	%	4.7	3.6

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JUBILANT INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -11.1%.
• Long-term debt down at Rs 236 million as compared to Rs 550 million during FY22, a fall of 57.1%.
• Current assets fell 1% and stood at Rs 5 billion, while fixed assets rose 14% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 2%.

JUBILANT INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,386	2,011	45.1
Current Liabilities	Rs m	4,672	4,154	-11.1
Long-term Debt	Rs m	550	236	-57.1
Total Liabilities	Rs m	6,498	6,660	2.5
Current assets	Rs m	4,913	4,867	-0.9
Fixed Assets	Rs m	1,572	1,793	14.1
Total Assets	Rs m	6,498	6,660	2.5

JUBILANT INDUSTRIES Cash Flow Statement Analysis

• JUBILANT INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 145 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -182 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 21 million, an improvement of 123% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -20 million from the Rs -1 million net cash flows seen during FY22.

JUBILANT INDUSTRIES 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	300	145	-51.8%
Cash Flow from Investing Activities	Rs m	-217	-182	-
Cash Flow from Financing Activities	Rs m	-90	21	-
Net Cash Flow	Rs m	-1	-20	-

Current Valuations for JUBILANT INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.0, an decline from the EPS of Rs 36.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 539.1, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	773.6	977.4
TTM Earnings per share	Rs	36.2	35.0
Diluted earnings per share	Rs	36.2	35.0
Price to Cash Flow	x	10.4	10.0
TTM P/E ratio	x	12.9	15.6
Price / Book Value ratio	x	5.3	3.3
Market Cap	Rs m	7,375	6,678
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JUBILANT INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.1x 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 4.4x during FY23, from 5.8x 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 26.3% during FY23, from 39.4% 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 41.6% during FY23, from 45.8% 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 improved and stood at 11.1% during FY23, from 10.7% 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	1.1	1.2
Debtors’ Days	Days	62	64
Interest coverage	x	5.8	4.4
Debt to equity ratio	x	0.4	0.1
Return on assets	%	10.7	11.1
Return on equity	%	39.4	26.3
Return on capital employed	%	45.8	41.6

To see how JUBILANT INDUSTRIES has performed over the last 5 years, please visit here.

JUBILANT INDUSTRIES Share Price Performance

Over the last one year, JUBILANT INDUSTRIES share price has moved up from Rs 475.0 to Rs 539.1, registering a gain of Rs 64.1 or around 13.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,808.8 (down 1.9%). Over the last one year it has moved up from 23,602.5 to 26,808.8, a gain of 3,206 points (up 13.6%).

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for JUBILANT INDUSTRIES and quarterly results for JUBILANT INDUSTRIES)