JYOTHY LABS 2020-21 Annual Report Analysis

Wed, 31 Mar

JYOTHY LABS 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.

JYOTHY LABS Income Statement Analysis

• Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY21 as against 14.5% in FY20.
• Depreciation charges increased by 5.0% and finance costs decreased by 41.5% YoY, respectively.
• Other income grew by 17.0% YoY.
• Net profit for the year grew by 17.3% YoY.
• Net profit margins during the year grew from 9.5% in FY20 to 10.0% in FY21.

JYOTHY LABS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	17,112	19,091	11.6%
Other income	Rs m	200	234	17.0%
Total Revenues	Rs m	17,312	19,325	11.6%
Gross profit	Rs m	2,473	2,861	15.7%
Depreciation	Rs m	529	556	5.0%
Interest	Rs m	329	192	-41.5%
Profit before tax	Rs m	1,815	2,346	29.3%
Tax	Rs m	189	440	132.4%
Profit after tax	Rs m	1,626	1,907	17.3%
Gross profit margin	%	14.5	15.0
Effective tax rate	%	10.4	18.7
Net profit margin	%	9.5	10.0

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JYOTHY LABS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -6.4%.
• Current assets rose 42% and stood at Rs 7 billion, while fixed assets fell 3% and stood at Rs 15 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 22 billion as against Rs 20 billion during FY20, thereby witnessing a growth of 8%.

JYOTHY LABS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	12,286	14,286	16.3
Current Liabilities	Rs m	5,916	5,536	-6.4
Long-term Debt	Rs m	3	0	-100.0
Total Liabilities	Rs m	20,272	21,874	7.9
Current assets	Rs m	4,957	7,056	42.4
Fixed Assets	Rs m	15,315	14,817	-3.3
Total Assets	Rs m	20,272	21,874	7.9

JYOTHY LABS Cash Flow Statement Analysis

• JYOTHY LABS's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 134.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 29% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 569 million from the Rs -599 million net cash flows seen during FY20.

JYOTHY LABS 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	1,715	4,022	134.5%
Cash Flow from Investing Activities	Rs m	725	-1,291	-
Cash Flow from Financing Activities	Rs m	-3,039	-2,161	-
Net Cash Flow	Rs m	-599	569	-

Current Valuations for JYOTHY LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 136.9, stands at 26.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 19.2 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	46.6	52.0
TTM Earnings per share	Rs	4.4	5.2
Diluted earnings per share	Rs	4.4	5.2
Price to Cash Flow	x	16.0	19.2
TTM P/E ratio	x	21.2	26.4
Price / Book Value ratio	x	4.3	3.3
Market Cap	Rs m	52,520	47,214
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for JYOTHY LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 0.8x 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 13.2x during FY21, from 6.5x 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 13.3% during FY21, from 13.2% 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 17.8% during FY21, from 17.4% 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 declined and down at 9.6% during FY21, from 9.6% 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	0.8	1.3
Debtors’ Days	Days	261	180
Interest coverage	x	6.5	13.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	9.6
Return on equity	%	13.2	13.3
Return on capital employed	%	17.4	17.8

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 up from Rs 93.8 to Rs 136.9, registering a gain of Rs 43.1 or around 46.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 12,875.4 (up 1.1%). Over the last one year it has moved up from 10,254.9 to 12,875.4, a gain of 2,621 points (up 25.6%).

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