JK AGRI GENETICS 2021-22 Annual Report Analysis

Wed, 24 Aug

JK AGRI GENETICS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JK AGRI GENETICS Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY22 as against 7.3% in FY21.
• Depreciation charges decreased by 2.6% and finance costs decreased by 13.7% YoY, respectively.
• Other income grew by 54.5% YoY.
• Net profit for the year grew by 7.8% YoY.
• Net profit margins during the year declined from 3.2% in FY21 to 3.1% in FY22.

JK AGRI GENETICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,238	2,458	9.9%
Other income	Rs m	36	56	54.5%
Total Revenues	Rs m	2,274	2,515	10.6%
Gross profit	Rs m	164	136	-16.6%
Depreciation	Rs m	35	34	-2.6%
Interest	Rs m	64	56	-13.7%
Profit before tax	Rs m	100	103	2.4%
Tax	Rs m	28	25	-11.3%
Profit after tax	Rs m	72	77	7.8%
Gross profit margin	%	7.3	5.6
Effective tax rate	%	28.4	24.6
Net profit margin	%	3.2	3.1

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JK AGRI GENETICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 14.5%.
• Long-term debt stood at Rs 139 million as compared to Rs 69 million during FY21, a growth of 102.1%.
• Current assets rose 16% and stood at Rs 3 billion, while fixed assets fell 10% and stood at Rs 312 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 13%.

JK AGRI GENETICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,354	1,420	4.9
Current Liabilities	Rs m	1,629	1,866	14.5
Long-term Debt	Rs m	69	139	102.1
Total Liabilities	Rs m	2,923	3,292	12.7
Current assets	Rs m	2,578	2,981	15.6
Fixed Assets	Rs m	345	312	-9.6
Total Assets	Rs m	2,923	3,292	12.7

JK AGRI GENETICS Cash Flow Statement Analysis

• JK AGRI GENETICS's cash flow from operating activities (CFO) during FY22 stood at Rs -9 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 54 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -5 million, an improvement of 86% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 40 million from the Rs -50 million net cash flows seen during FY21.

JK AGRI GENETICS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	214	-9	-
Cash Flow from Investing Activities	Rs m	-224	54	-
Cash Flow from Financing Activities	Rs m	-40	-5	-
Net Cash Flow	Rs m	-50	40	-

Current Valuations for JK AGRI GENETICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an improvement from the EPS of Rs 15.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 501.5, stands at -74.9 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 31.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	482.3	529.8
TTM Earnings per share	Rs	15.5	16.7
Diluted earnings per share	Rs	15.5	16.7
Price to Cash Flow	x	23.3	31.6
TTM P/E ratio	x	34.7	-74.9
Price / Book Value ratio	x	2.2	2.5
Market Cap	Rs m	2,989	3,528
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for JK AGRI GENETICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.6x during FY21. 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 2.8x during FY22, from 2.6x during FY21. 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 5.4% during FY22, from 5.3% during FY22. 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 10.1% during FY22, from 11.6% during FY21. 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 4.0% during FY22, from 4.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.6	1.6
Debtors’ Days	Days	1,254	1,537
Interest coverage	x	2.6	2.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.7	4.0
Return on equity	%	5.3	5.4
Return on capital employed	%	11.6	10.1

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

JK AGRI GENETICS Share Price Performance

Over the last one year, JK AGRI GENETICS share price has moved down from Rs 712.5 to Rs 501.5, registering a loss of Rs 211.0 or around 29.6%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

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