J.B.CHEMICALS 2023-24 Annual Report Analysis

Tue, 30 Jul

J.B.CHEMICALS 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.

J.B.CHEMICALS Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.6% in FY24 as against 22.1% in FY23.
• Depreciation charges increased by 20.9% and finance costs increased by 22.9% YoY, respectively.
• Other income grew by 319.2% YoY.
• Net profit for the year grew by 34.8% YoY.
• Net profit margins during the year grew from 13.0% in FY23 to 15.9% in FY24.

J.B.CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,493	34,842	10.6%
Other income	Rs m	99	417	319.2%
Total Revenues	Rs m	31,592	35,259	11.6%
Gross profit	Rs m	6,958	8,925	28.3%
Depreciation	Rs m	1,144	1,383	20.9%
Interest	Rs m	361	443	22.9%
Profit before tax	Rs m	5,552	7,515	35.4%
Tax	Rs m	1,452	1,989	36.9%
Profit after tax	Rs m	4,100	5,526	34.8%
Gross profit margin	%	22.1	25.6
Effective tax rate	%	26.2	26.5
Net profit margin	%	13.0	15.9

Don't Miss: Key Information for Long-term Investors

J.B.CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 105.8%.
• Long-term debt down at Rs 236 million as compared to Rs 4 billion during FY23, a fall of 93.8%.
• Current assets rose 42% and stood at Rs 23 billion, while fixed assets fell 4% and stood at Rs 24 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 47 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 14%.

J.B.CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,587	27,835	18.0
Current Liabilities	Rs m	6,257	12,878	105.8
Long-term Debt	Rs m	3,832	236	-93.8
Total Liabilities	Rs m	40,981	46,770	14.1
Current assets	Rs m	15,993	22,729	42.1
Fixed Assets	Rs m	24,988	24,042	-3.8
Total Assets	Rs m	40,981	46,770	14.1

J.B.CHEMICALS Cash Flow Statement Analysis

• J.B.CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 28.0% 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 -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 113 million from the Rs 204 million net cash flows seen during FY23.

J.B.CHEMICALS 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	6,256	8,006	28.0%
Cash Flow from Investing Activities	Rs m	-9,618	-4,038	-
Cash Flow from Financing Activities	Rs m	3,565	-3,855	-
Net Cash Flow	Rs m	204	113	-44.7%

Current Valuations for J.B.CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.6, an decline from the EPS of Rs 53.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,932.0, stands at 54.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.8 times, while the price to sales ratio stands at 8.6 times.
• The company's price to cash flow (P/CF) ratio stood at 32.0 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	407.0	224.5
TTM Earnings per share	Rs	53.0	35.6
Diluted earnings per share	Rs	26.4	35.6
Price to Cash Flow	x	29.2	32.0
TTM P/E ratio	x	37.3	54.3
Price / Book Value ratio	x	5.7	7.9
Market Cap	Rs m	134,983	221,125
Dividends per share (Unadj.)	Rs	8.9	12.3

Ratio Analysis for J.B.CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY24, from 2.6x 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 improved and stood at 18.0x during FY24, from 16.4x 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 improved and stood at 19.9% during FY24, from 17.4% 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 improved and stood at 28.4% during FY24, from 21.6% 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 improved and stood at 12.8% during FY24, from 10.9% 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	2.6	1.8
Debtors’ Days	Days	667	720
Interest coverage	x	16.4	18.0
Debt to equity ratio	x	0.2	0.0
Return on assets	%	10.9	12.8
Return on equity	%	17.4	19.9
Return on capital employed	%	21.6	28.4

To see how J.B.CHEMICALS has performed over the last 5 years, please visit here.

J.B.CHEMICALS Share Price Performance

Over the last one year, J.B.CHEMICALS share price has moved up from Rs 1,206.9 to Rs 1,932.0, registering a gain of Rs 725.2 or around 60.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,393.7 (up 0.3%). Over the last one year it has moved up from 27,747.1 to 40,393.7, a gain of 12,647 points (up 45.6%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for J.B.CHEMICALS and quarterly results for J.B.CHEMICALS)