JK PAPER 2023-24 Annual Report Analysis

Fri, 9 Aug

JK PAPER has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

JK PAPER Income Statement Analysis

• Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.3% in FY24 as against 30.7% in FY23.
• Depreciation charges increased by 10.0% and finance costs decreased by 6.5% YoY, respectively.
• Other income grew by 31.6% YoY.
• Net profit for the year declined by 6.2% YoY.
• Net profit margins during the year declined from 18.8% in FY23 to 17.0% in FY24.

JK PAPER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	64,368	66,592	3.5%
Other income	Rs m	1,727	2,272	31.6%
Total Revenues	Rs m	66,095	68,864	4.2%
Gross profit	Rs m	19,782	16,157	-18.3%
Depreciation	Rs m	2,819	3,101	10.0%
Interest	Rs m	2,225	2,081	-6.5%
Profit before tax	Rs m	16,465	13,247	-19.5%
Tax	Rs m	4,383	1,915	-56.3%
Profit after tax	Rs m	12,082	11,332	-6.2%
Gross profit margin	%	30.7	24.3
Effective tax rate	%	26.6	14.5
Net profit margin	%	18.8	17.0

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JK PAPER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 15 billion as compared to Rs 16 billion in FY23, thereby witnessing an decrease of -9.4%.
• Long-term debt down at Rs 16 billion as compared to Rs 21 billion during FY23, a fall of 21.7%.
• Current assets rose 13% and stood at Rs 31 billion, while fixed assets rose 1% and stood at Rs 63 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 93 billion as against Rs 89 billion during FY23, thereby witnessing a growth of 5%.

JK PAPER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	40,340	50,695	25.7
Current Liabilities	Rs m	16,289	14,760	-9.4
Long-term Debt	Rs m	20,829	16,303	-21.7
Total Liabilities	Rs m	89,199	93,262	4.6
Current assets	Rs m	27,040	30,576	13.1
Fixed Assets	Rs m	62,082	62,686	1.0
Total Assets	Rs m	89,199	93,262	4.6

JK PAPER Cash Flow Statement Analysis

• JK PAPER's cash flow from operating activities (CFO) during FY24 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 283 million from the Rs 269 million net cash flows seen during FY23.

JK PAPER Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	17,620	13,759	-21.9%
Cash Flow from Investing Activities	Rs m	-9,673	-4,109	-
Cash Flow from Financing Activities	Rs m	-7,867	-9,376	-
Net Cash Flow	Rs m	269	283	5.3%

Current Valuations for JK PAPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.9, an decline from the EPS of Rs 71.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 488.5, stands at 8.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	380.0	393.1
TTM Earnings per share	Rs	71.3	66.9
Diluted earnings per share	Rs	71.3	66.9
Price to Cash Flow	x	4.3	4.5
TTM P/E ratio	x	5.3	8.6
Price / Book Value ratio	x	1.5	1.3
Market Cap	Rs m	60,947	64,254
Dividends per share (Unadj.)	Rs	8.0	8.5

Ratio Analysis for JK PAPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.7x during FY23. 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 7.4x during FY24, from 8.4x during FY23. 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 22.4% during FY24, from 30.0% during FY24. 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 22.9% during FY24, from 30.6% during FY23. 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 14.4% during FY24, from 16.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	2.1
Debtors’ Days	Days	2	2
Interest coverage	x	8.4	7.4
Debt to equity ratio	x	0.5	0.3
Return on assets	%	16.0	14.4
Return on equity	%	30.0	22.4
Return on capital employed	%	30.6	22.9

To see how JK PAPER has performed over the last 5 years, please visit here.

JK PAPER Share Price Performance

Over the last one year, JK PAPER share price has moved up from Rs 330.4 to Rs 488.5, registering a gain of Rs 158.2 or around 47.9%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for JK PAPER and quarterly results for JK PAPER)