JAGRAN PRAKASHAN 2017-18 Annual Report Analysis
Thu, 20 Dec

JAGRAN PRAKASHAN has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JAGRAN PRAKASHAN Income Statement Analysis

  • Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 8.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.3% in FY18 as against 28.0% in FY17.
  • Depreciation charges increased by 5.6% and finance costs decreased by 22.6% YoY, respectively.
  • Other income grew by 13.4% YoY.
  • Net profit for the year declined by 11.0% YoY.
  • Net profit margins during the year declined from 15.0% in FY17 to 13.2% in FY18.

JAGRAN PRAKASHAN Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 22,830 23,040 0.9%
Other income Rs m 412 467 13.4%
Total Revenues Rs m 23,241 23,507 1.1%
Gross profit Rs m 6,397 5,832 -8.8%
Depreciation Rs m 1,289 1,361 5.6%
Interest Rs m 350 271 -22.6%
Profit before tax Rs m 5,169 4,667 -9.7%
Tax Rs m 1,675 1,557 -7.1%
Profit after tax Rs m 3,493 3,110 -11.0%
Gross profit margin % 28.0 25.3
Effective tax rate % 32.4 33.4
Net profit margin % 15.0 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JAGRAN PRAKASHAN Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 6 billion in FY17, thereby witnessing an decrease of -25.5%.
  • Long-term debt down at Rs 500 million as compared to Rs 502 million during FY17, a fall of 0.3%.
  • Current assets fell 13% and stood at Rs 9 billion, while fixed assets fell 5% and stood at Rs 15 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 30 billion as against Rs 32 billion during FY17, thereby witnessing a fall of 8%.

JAGRAN PRAKASHAN Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 23,912 22,871 -4.4
 
Current Liabilities Rs m 5,831 4,344 -25.5
Long-term Debt Rs m 502 500 -0.3
Total Liabilities Rs m 32,386 29,918 -7.6
 
Current assets Rs m 10,843 9,405 -13.3
Fixed Assets Rs m 15,736 14,943 -5.0
Total Assets Rs m 32,386 29,918 -7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JAGRAN PRAKASHAN Cash Flow Statement Analysis

  • JAGRAN PRAKASHAN's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY17.

JAGRAN PRAKASHAN Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 4,774 3,907 -18.2%
Cash Flow from Investing Activities Rs m -4,193 1,017 -
Cash Flow from Financing Activities Rs m 631 -6,053 -
Net Cash Flow Rs m 1,212 -1,129 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JAGRAN PRAKASHAN

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an decline from the EPS of Rs 10.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 118.3, stands at 13.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 69.8 74.0
TTM Earnings per share Rs 10.7 10.0
Diluted earnings per share Rs 10.5 9.4
Price to Cash Flow x 8.1 8.8
TTM P/E ratio x 13.6 13.9
Price / Book Value ratio x 2.5 2.4
Market Cap Rs m 38,656 39,248
Dividends per share (Unadj.) Rs 3.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JAGRAN PRAKASHAN

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 1.9x during FY17. 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 deteriorated and stood at 18.2x during FY18, from 15.8x during FY17. 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 13.6% during FY18, from 14.6% during FY18. 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 21.1% during FY18, from 22.6% during FY17. 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 11.3% during FY18, from 11.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.9 2.2
Debtors’ Days Days 82 96
Interest coverage x 15.8 18.2
Debt to equity ratio x 0.0 0.0
Return on assets % 11.9 11.3
Return on equity % 14.6 13.6
Return on capital employed % 22.6 21.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how JAGRAN PRAKASHAN has performed over the last 5 years, please visit here.

JAGRAN PRAKASHAN Share Price Performance

Over the last one year, JAGRAN PRAKASHAN share price has moved up from Rs 166.1 to Rs 118.3, registering a loss of Rs 47.9 or around 28.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,144.8 (down 0.3%). Over the last one year it has moved up from 6,211.5 to 7,144.8, a gain of 933 points (up 15.0%).

Overall, the S&P BSE SENSEX is up 7.5% over the year.

(To know more, check out historical annual results for JAGRAN PRAKASHAN and quarterly results for JAGRAN PRAKASHAN)