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JYOTHY LABS 2018-19 Annual Report Analysis

Sun, 31 Mar

JYOTHY LABS 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.

JYOTHY LABS Income Statement Analysis

• Operating income during the year rose 9.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.5% in FY19 as against 15.6% in FY18.
• Depreciation charges decreased by 1.8% and finance costs decreased by 26.7% YoY, respectively.
• Other income declined by 55.7% YoY.
• Net profit for the year grew by 10.5% YoY.
• Net profit margins during the year grew from 10.8% in FY18 to 10.9% in FY19.

JYOTHY LABS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	16,545	18,136	9.6%
Other income	Rs m	625	277	-55.7%
Total Revenues	Rs m	17,170	18,412	7.2%
Gross profit	Rs m	2,575	2,812	9.2%
Depreciation	Rs m	311	306	-1.8%
Interest	Rs m	481	352	-26.7%
Profit before tax	Rs m	2,407	2,430	1.0%
Tax	Rs m	619	454	-26.6%
Profit after tax	Rs m	1,789	1,976	10.5%
Gross profit margin	%	15.6	15.5
Effective tax rate	%	25.7	18.7
Net profit margin	%	10.8	10.9

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JYOTHY LABS Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 6 billion as compared to Rs 8 billion in FY18, thereby witnessing an decrease of -25.7%.
• Long-term debt down at Rs 20 million as compared to Rs 38 million during FY18, a fall of 46.4%.
• Current assets fell 5% and stood at Rs 7 billion, while fixed assets rose 3% and stood at Rs 14 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 21 billion as against Rs 21 billion during FY18, thereby witnessing a growth of 0%.

JYOTHY LABS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	11,122	13,265	19.3
Current Liabilities	Rs m	8,483	6,301	-25.7
Long-term Debt	Rs m	38	20	-46.4
Total Liabilities	Rs m	21,033	21,135	0.5
Current assets	Rs m	7,002	6,658	-4.9
Fixed Assets	Rs m	14,030	14,477	3.2
Total Assets	Rs m	21,033	21,135	0.5

JYOTHY LABS Cash Flow Statement Analysis

• JYOTHY LABS's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 24.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 303 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 133 million from the Rs 228 million net cash flows seen during FY18.

JYOTHY LABS 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	2,423	3,015	24.4%
Cash Flow from Investing Activities	Rs m	-741	303	-
Cash Flow from Financing Activities	Rs m	-1,453	-3,185	-
Net Cash Flow	Rs m	228	133	-41.6%

Current Valuations for JYOTHY LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an decline from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 182.5, stands at 34.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 52.9 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	91.0	49.4
TTM Earnings per share	Rs	9.8	5.4
Diluted earnings per share	Rs	4.9	5.4
Price to Cash Flow	x	68.3	52.9
TTM P/E ratio	x	89.4	34.7
Price / Book Value ratio	x	6.3	9.1
Market Cap	Rs m	69,627	120,793
Dividends per share (Unadj.)	Rs	0.5	3.0

Ratio Analysis for JYOTHY LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 0.8x 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 7.9x during FY19, from 6.0x 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 declined and down at 14.9% during FY19, from 16.1% 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 declined and down at 20.9% during FY19, from 25.9% 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 11.0% during FY19, from 10.8% 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	0.8	1.1
Debtors’ Days	Days	355	309
Interest coverage	x	6.0	7.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.8	11.0
Return on equity	%	16.1	14.9
Return on capital employed	%	25.9	20.9

To see how JYOTHY LABS has performed over the last 5 years, please visit here.

JYOTHY LABS Share Price Performance

Over the last one year, JYOTHY LABS share price has moved down from Rs 390.8 to Rs 182.5, registering a loss of Rs 208.3 or around 53.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,741.5 (down 0.1%). Over the last one year it has moved up from 10,290.1 to 11,741.5, a gain of 1,451 points (up 14.1%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for JYOTHY LABS and quarterly results for JYOTHY LABS)

Read: Latest Annual Report Analysis of JYOTHY LABS