JTEKT INDIA 2022-23 Annual Report Analysis

Mon, 21 Aug

JTEKT INDIA 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.

JTEKT INDIA Income Statement Analysis

• Operating income during the year rose 28.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 52.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.0% in FY23 as against 7.6% in FY22.
• Depreciation charges increased by 3.3% and finance costs increased by 27.1% YoY, respectively.
• Other income declined by 16.3% YoY.
• Net profit for the year grew by 111.9% YoY.
• Net profit margins during the year grew from 2.6% in FY22 to 4.3% in FY23.

JTEKT INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,888	20,439	28.6%
Other income	Rs m	102	86	-16.3%
Total Revenues	Rs m	15,990	20,525	28.4%
Gross profit	Rs m	1,206	1,835	52.2%
Depreciation	Rs m	709	732	3.3%
Interest	Rs m	37	47	27.1%
Profit before tax	Rs m	562	1,142	103.2%
Tax	Rs m	151	271	79.7%
Profit after tax	Rs m	411	871	111.9%
Gross profit margin	%	7.6	9.0
Effective tax rate	%	26.8	23.7
Net profit margin	%	2.6	4.3

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JTEKT INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 4.1%.
• Long-term debt down at Rs 309 million as compared to Rs 343 million during FY22, a fall of 10.0%.
• Current assets rose 13% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 9%.

JTEKT INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,318	7,028	11.2
Current Liabilities	Rs m	3,082	3,209	4.1
Long-term Debt	Rs m	343	309	-10.0
Total Liabilities	Rs m	10,381	11,314	9.0
Current assets	Rs m	5,040	5,700	13.1
Fixed Assets	Rs m	5,341	5,612	5.1
Total Assets	Rs m	10,381	11,314	9.0

JTEKT INDIA Cash Flow Statement Analysis

• JTEKT INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 952 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -844 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -280 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -172 million from the Rs -37 million net cash flows seen during FY22.

JTEKT INDIA 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	1,075	952	-11.5%
Cash Flow from Investing Activities	Rs m	-1,256	-844	-
Cash Flow from Financing Activities	Rs m	144	-280	-
Net Cash Flow	Rs m	-37	-172	-

Current Valuations for JTEKT INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 134.1, stands at 36.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.4 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	65.0	83.6
TTM Earnings per share	Rs	1.7	3.6
Diluted earnings per share	Rs	1.7	3.6
Price to Cash Flow	x	16.2	20.4
TTM P/E ratio	x	44.1	36.3
Price / Book Value ratio	x	3.9	4.6
Market Cap	Rs m	24,784	32,669
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for JTEKT INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.6x 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 25.1x during FY23, from 16.1x 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 12.4% during FY23, from 6.5% 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 16.2% during FY23, from 9.0% 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 8.1% during FY23, from 4.3% 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	1.6	1.8
Debtors’ Days	Days	555	501
Interest coverage	x	16.1	25.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	4.3	8.1
Return on equity	%	6.5	12.4
Return on capital employed	%	9.0	16.2

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 88.5 to Rs 134.1, registering a gain of Rs 45.7 or around 51.6%.

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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