JK CEMENT 2023-24 Annual Report Analysis

Tue, 2 Jul

JK CEMENT 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 CEMENT Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 56.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.8% in FY24 as against 13.5% in FY23.
• Depreciation charges increased by 24.0% and finance costs increased by 45.2% YoY, respectively.
• Other income grew by 66.0% YoY.
• Net profit for the year grew by 89.7% YoY.
• Net profit margins during the year grew from 4.3% in FY23 to 6.8% in FY24.

JK CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	97,202	115,560	18.9%
Other income	Rs m	874	1,451	66.0%
Total Revenues	Rs m	98,076	117,011	19.3%
Gross profit	Rs m	13,143	20,543	56.3%
Depreciation	Rs m	4,619	5,726	24.0%
Interest	Rs m	3,122	4,531	45.2%
Profit before tax	Rs m	6,276	11,736	87.0%
Tax	Rs m	2,113	3,837	81.6%
Profit after tax	Rs m	4,163	7,899	89.7%
Gross profit margin	%	13.5	17.8
Effective tax rate	%	33.7	32.7
Net profit margin	%	4.3	6.8

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JK CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 34 billion as compared to Rs 29 billion in FY23, thereby witnessing an increase of 15.4%.
• Long-term debt stood at Rs 42 billion as compared to Rs 41 billion during FY23, a growth of 1.9%.
• Current assets rose 18% and stood at Rs 44 billion, while fixed assets rose 9% and stood at Rs 104 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 148 billion as against Rs 133 billion during FY23, thereby witnessing a growth of 11%.

JK CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	46,840	53,671	14.6
Current Liabilities	Rs m	29,468	34,001	15.4
Long-term Debt	Rs m	41,010	41,774	1.9
Total Liabilities	Rs m	133,068	148,021	11.2
Current assets	Rs m	37,383	44,165	18.1
Fixed Assets	Rs m	95,686	103,857	8.5
Total Assets	Rs m	133,068	148,021	11.2

JK CEMENT Cash Flow Statement Analysis

• JK CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 20 billion, an improvement of 42.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -16 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 2 billion from the Rs 3 billion net cash flows seen during FY23.

JK CEMENT 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	13,771	19,591	42.3%
Cash Flow from Investing Activities	Rs m	-20,148	-16,358	-
Cash Flow from Financing Activities	Rs m	7,413	-4,157	-
Net Cash Flow	Rs m	2,571	1,744	-32.2%

Current Valuations for JK CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 102.2, an improvement from the EPS of Rs 53.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,407.9, stands at 42.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 21.0 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	1,258.0	1,495.5
TTM Earnings per share	Rs	53.9	102.2
Diluted earnings per share	Rs	53.9	102.2
Price to Cash Flow	x	25.7	21.0
TTM P/E ratio	x	54.3	42.8
Price / Book Value ratio	x	4.3	5.3
Market Cap	Rs m	202,947	286,399
Dividends per share (Unadj.)	Rs	15.0	20.0

Ratio Analysis for JK CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.3x 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 3.6x during FY24, from 3.0x 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 14.7% during FY24, from 8.9% 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 17.0% during FY24, from 10.7% 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 8.4% during FY24, from 5.5% 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	1.3	1.3
Debtors’ Days	Days	2	2
Interest coverage	x	3.0	3.6
Debt to equity ratio	x	0.9	0.8
Return on assets	%	5.5	8.4
Return on equity	%	8.9	14.7
Return on capital employed	%	10.7	17.0

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

JK CEMENT Share Price Performance

Over the last one year, JK CEMENT share price has moved up from Rs 3,382.5 to Rs 4,407.9, registering a gain of Rs 1,025.5 or around 30.3%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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