JTEKT INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

JTEKT INDIA 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.

JTEKT INDIA Income Statement Analysis

• Operating income during the year fell 11.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY21 as against 9.1% in FY20.
• Depreciation charges decreased by 10.6% and finance costs decreased by 52.4% YoY, respectively.
• Other income declined by 38.0% YoY.
• Net profit for the year declined by 61.0% YoY.
• Net profit margins during the year declined from 2.3% in FY20 to 1.0% in FY21.

JTEKT INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	15,105	13,330	-11.8%
Other income	Rs m	88	55	-38.0%
Total Revenues	Rs m	15,194	13,384	-11.9%
Gross profit	Rs m	1,369	1,027	-24.9%
Depreciation	Rs m	928	830	-10.6%
Interest	Rs m	99	47	-52.4%
Profit before tax	Rs m	430	205	-52.3%
Tax	Rs m	78	68	-13.0%
Profit after tax	Rs m	351	137	-61.0%
Gross profit margin	%	9.1	7.7
Effective tax rate	%	18.2	33.2
Net profit margin	%	2.3	1.0

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JTEKT INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 20.6%.
• Long-term debt stood at Rs 173 million as compared to Rs 161 million during FY20, a growth of 7.2%.
• Current assets rose 26% and stood at Rs 5 billion, while fixed assets fell 9% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 5%.

JTEKT INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,956	5,985	0.5
Current Liabilities	Rs m	2,368	2,855	20.6
Long-term Debt	Rs m	161	173	7.2
Total Liabilities	Rs m	9,911	10,390	4.8
Current assets	Rs m	3,873	4,869	25.7
Fixed Assets	Rs m	6,039	5,521	-8.6
Total Assets	Rs m	9,911	10,390	4.8

JTEKT INDIA Cash Flow Statement Analysis

• JTEKT INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 913 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -402 million, an improvement of 19.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -445 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 66 million from the Rs -612 million net cash flows seen during FY20.

JTEKT INDIA 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	1,251	913	-27.0%
Cash Flow from Investing Activities	Rs m	-336	-402	-
Cash Flow from Financing Activities	Rs m	-1,527	-445	-
Net Cash Flow	Rs m	-612	66	-

Current Valuations for JTEKT INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.2, stands at 150.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 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	61.8	54.5
TTM Earnings per share	Rs	1.4	0.6
Diluted earnings per share	Rs	1.4	0.6
Price to Cash Flow	x	7.7	17.7
TTM P/E ratio	x	27.9	150.4
Price / Book Value ratio	x	3.2	2.9
Market Cap	Rs m	18,831	17,108
Dividends per share (Unadj.)	Rs	0.4	0.2

Ratio Analysis for JTEKT INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.6x 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 5.3x during FY21, from 5.3x 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 declined and down at 2.3% during FY21, from 5.9% 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 declined and down at 4.1% during FY21, from 8.6% 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 1.8% during FY21, from 4.5% 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	1.6	1.7
Debtors’ Days	Days	469	695
Interest coverage	x	5.3	5.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	1.8
Return on equity	%	5.9	2.3
Return on capital employed	%	8.6	4.1

To see how JTEKT INDIA has performed over the last 5 years, please visit here.

JTEKT INDIA Share Price Performance

Over the last one year, JTEKT INDIA share price has moved up from Rs 40.2 to Rs 84.2, registering a gain of Rs 44.1 or around 109.7%.

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

(To know more, check out historical annual results for JTEKT INDIA and quarterly results for JTEKT INDIA)

Read: Latest Annual Report Analysis of JTEKT INDIA