JK LAKSHMI CEMENT 2023-24 Annual Report Analysis

Mon, 5 Aug

JK LAKSHMI 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 LAKSHMI CEMENT Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY24 as against 13.0% in FY23.
• Depreciation charges increased by 7.7% and finance costs increased by 12.8% YoY, respectively.
• Other income grew by 19.9% YoY.
• Net profit for the year grew by 32.2% YoY.
• Net profit margins during the year grew from 5.7% in FY23 to 7.2% in FY24.

JK LAKSHMI CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	64,515	67,885	5.2%
Other income	Rs m	575	690	19.9%
Total Revenues	Rs m	65,090	68,575	5.4%
Gross profit	Rs m	8,387	10,599	26.4%
Depreciation	Rs m	2,283	2,460	7.7%
Interest	Rs m	1,334	1,504	12.8%
Profit before tax	Rs m	5,345	7,325	37.0%
Tax	Rs m	1,654	2,446	47.9%
Profit after tax	Rs m	3,691	4,879	32.2%
Gross profit margin	%	13.0	15.6
Effective tax rate	%	30.9	33.4
Net profit margin	%	5.7	7.2

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JK LAKSHMI CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 20 billion as compared to Rs 16 billion in FY23, thereby witnessing an increase of 24.2%.
• Long-term debt stood at Rs 16 billion as compared to Rs 15 billion during FY23, a growth of 2.3%.
• Current assets fell 4% and stood at Rs 18 billion, while fixed assets rose 26% and stood at Rs 58 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 77 billion as against Rs 65 billion during FY23, thereby witnessing a growth of 17%.

JK LAKSHMI CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,039	31,867	13.7
Current Liabilities	Rs m	16,406	20,370	24.2
Long-term Debt	Rs m	15,289	15,639	2.3
Total Liabilities	Rs m	65,408	76,500	17.0
Current assets	Rs m	19,252	18,412	-4.4
Fixed Assets	Rs m	46,135	58,088	25.9
Total Assets	Rs m	65,408	76,500	17.0

JK LAKSHMI CEMENT Cash Flow Statement Analysis

• JK LAKSHMI CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 9 billion, an improvement of 41.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -9 billion, an improvement of 193.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -356 million, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -163 million from the Rs 689 million net cash flows seen during FY23.

JK LAKSHMI 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	6,342	8,992	41.8%
Cash Flow from Investing Activities	Rs m	-2,995	-8,800	-
Cash Flow from Financing Activities	Rs m	-2,658	-356	-
Net Cash Flow	Rs m	689	-163	-

Current Valuations for JK LAKSHMI CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.5, an improvement from the EPS of Rs 31.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 811.7, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	548.3	576.9
TTM Earnings per share	Rs	31.4	41.5
Diluted earnings per share	Rs	31.4	41.5
Price to Cash Flow	x	15.6	12.9
TTM P/E ratio	x	25.2	20.2
Price / Book Value ratio	x	2.7	3.0
Market Cap	Rs m	74,465	94,519
Dividends per share (Unadj.)	Rs	3.8	6.5

Ratio Analysis for JK LAKSHMI CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.2x 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 5.9x during FY24, from 5.0x 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 15.3% during FY24, from 13.2% 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 18.6% during FY24, from 15.4% 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 8.3% during FY24, from 7.7% 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	1.2	0.9
Debtors’ Days	Days	0	0
Interest coverage	x	5.0	5.9
Debt to equity ratio	x	0.5	0.5
Return on assets	%	7.7	8.3
Return on equity	%	13.2	15.3
Return on capital employed	%	15.4	18.6

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

JK LAKSHMI CEMENT Share Price Performance

Over the last one year, JK LAKSHMI CEMENT share price has moved up from Rs 640.1 to Rs 811.7, registering a gain of Rs 171.6 or around 26.8%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

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