JYOTI RESINS 2022-23 Annual Report Analysis

Thu, 21 Sep

JYOTI RESINS 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.

JYOTI RESINS Income Statement Analysis

• Operating income during the year rose 43.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 155.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY23 as against 13.1% in FY22.
• Depreciation charges increased by 104.5% and finance costs decreased by 44.8% YoY, respectively.
• Other income declined by 34.4% YoY.
• Net profit for the year grew by 135.0% YoY.
• Net profit margins during the year grew from 10.9% in FY22 to 17.8% in FY23.

JYOTI RESINS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,820	2,613	43.6%
Other income	Rs m	35	23	-34.4%
Total Revenues	Rs m	1,854	2,635	42.1%
Gross profit	Rs m	238	606	155.0%
Depreciation	Rs m	7	14	104.5%
Interest	Rs m	1	0	-44.8%
Profit before tax	Rs m	265	614	132.1%
Tax	Rs m	67	150	123.6%
Profit after tax	Rs m	198	464	135.0%
Gross profit margin	%	13.1	23.2
Effective tax rate	%	25.3	24.4
Net profit margin	%	10.9	17.8

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JYOTI RESINS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 885 million in FY22, thereby witnessing an increase of 17.5%.
• Current assets rose 29% and stood at Rs 1 billion, while fixed assets rose 60% and stood at Rs 749 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 39%.

JYOTI RESINS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	625	1,060	69.5
Current Liabilities	Rs m	885	1,040	17.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,517	2,107	38.9
Current assets	Rs m	1,049	1,358	29.5
Fixed Assets	Rs m	468	749	60.0
Total Assets	Rs m	1,517	2,107	38.9

JYOTI RESINS Cash Flow Statement Analysis

• JYOTI RESINS's cash flow from operating activities (CFO) during FY23 stood at Rs 9 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -30 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -24 million from the Rs -8 million net cash flows seen during FY22.

JYOTI RESINS 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	26	9	-65.9%
Cash Flow from Investing Activities	Rs m	-23	-3	-
Cash Flow from Financing Activities	Rs m	-12	-30	-
Net Cash Flow	Rs m	-8	-24	-

Current Valuations for JYOTI RESINS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.7, an decline from the EPS of Rs 49.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,700.0, stands at 42.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.2 times, while the price to sales ratio stands at 7.8 times.
• The company's price to cash flow (P/CF) ratio stood at 30.6 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	454.9	217.7
TTM Earnings per share	Rs	49.4	38.7
Diluted earnings per share	Rs	16.5	38.7
Price to Cash Flow	x	43.0	30.6
TTM P/E ratio	x	44.6	42.1
Price / Book Value ratio	x	9.6	13.8
Market Cap	Rs m	6,000	14,651
Dividends per share (Unadj.)	Rs	7.5	6.0

Ratio Analysis for JYOTI RESINS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.2x 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 improved and stood at 1,920.1x during FY23, from 457.2x 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 improved and stood at 43.8% during FY23, from 31.6% 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 improved and stood at 58.0% during FY23, from 42.4% 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 22.1% during FY23, from 13.1% 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	1.2	1.3
Debtors’ Days	Days	1,291	1,278
Interest coverage	x	457.2	1,920.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.1	22.1
Return on equity	%	31.6	43.8
Return on capital employed	%	42.4	58.0

To see how JYOTI RESINS has performed over the last 5 years, please visit here.

JYOTI RESINS Share Price Performance

Over the last one year, JYOTI RESINS share price has moved up from Rs 1,656.1 to Rs 1,700.0, registering a gain of Rs 44.0 or around 2.7%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for JYOTI RESINS and quarterly results for JYOTI RESINS)