JYOTHY LABS 2021-22 Annual Report Analysis

Mon, 4 Jul

JYOTHY LABS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JYOTHY LABS Income Statement Analysis

• Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY22 as against 15.2% in FY21.
• Depreciation charges increased by 4.6% and finance costs decreased by 38.6% YoY, respectively.
• Other income grew by 1.2% YoY.
• Net profit for the year declined by 16.5% YoY.
• Net profit margins during the year declined from 10.0% in FY21 to 7.2% in FY22.

JYOTHY LABS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	19,091	21,965	15.1%
Other income	Rs m	185	187	1.2%
Total Revenues	Rs m	19,276	22,152	14.9%
Gross profit	Rs m	2,910	2,482	-14.7%
Depreciation	Rs m	556	582	4.6%
Interest	Rs m	192	118	-38.6%
Profit before tax	Rs m	2,346	1,969	-16.1%
Tax	Rs m	440	378	-14.1%
Profit after tax	Rs m	1,907	1,591	-16.5%
Gross profit margin	%	15.2	11.3
Effective tax rate	%	18.7	19.2
Net profit margin	%	10.0	7.2

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JYOTHY LABS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 6 billion in FY21, thereby witnessing an increase of 7.6%.
• Current assets rose 13% and stood at Rs 8 billion, while fixed assets rose 1% and stood at Rs 15 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 23 billion as against Rs 22 billion during FY21, thereby witnessing a growth of 5%.

JYOTHY LABS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	14,286	14,436	1.1
Current Liabilities	Rs m	5,536	5,954	7.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	21,874	22,910	4.7
Current assets	Rs m	7,056	7,988	13.2
Fixed Assets	Rs m	14,817	14,922	0.7
Total Assets	Rs m	21,874	22,910	4.7

JYOTHY LABS Cash Flow Statement Analysis

• JYOTHY LABS's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -317 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 42 million from the Rs 569 million net cash flows seen during FY21.

JYOTHY LABS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	4,022	2,026	-49.6%
Cash Flow from Investing Activities	Rs m	-1,291	-317	-
Cash Flow from Financing Activities	Rs m	-2,161	-1,667	-
Net Cash Flow	Rs m	569	42	-92.7%

Current Valuations for JYOTHY LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an decline from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 150.0, stands at 34.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 26.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	52.0	59.8
TTM Earnings per share	Rs	5.2	4.3
Diluted earnings per share	Rs	5.2	4.3
Price to Cash Flow	x	20.4	26.8
TTM P/E ratio	x	26.4	34.6
Price / Book Value ratio	x	3.3	4.0
Market Cap	Rs m	47,214	58,239
Dividends per share (Unadj.)	Rs	4.0	2.5

Ratio Analysis for JYOTHY LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x during FY21. 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 17.7x during FY22, from 13.2x during FY21. 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 11.0% during FY22, from 13.3% during FY22. 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 14.5% during FY22, from 17.8% during FY21. 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 7.5% during FY22, from 9.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	180	238
Interest coverage	x	13.2	17.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	7.5
Return on equity	%	13.3	11.0
Return on capital employed	%	17.8	14.5

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 167.9 to Rs 150.0, registering a loss of Rs 17.9 or around 10.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 14,231.8 (up 0.9%). Over the last one year it has moved up from 13,583.0 to 14,231.8, a gain of 649 points (up 4.8%).

Overall, the S&P BSE SENSEX is up 0.9% 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