JM FINANCIAL 2023-24 Annual Report Analysis

Tue, 16 Jul

JM FINANCIAL 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.

JM FINANCIAL Income Statement Analysis

• Operating income during the year rose 45.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 39.8% in FY24 as against 55.2% in FY23.
• Depreciation charges increased by 26.7% and finance costs increased by 32.5% YoY, respectively.
• Other income declined by 80.6% YoY.
• Net profit for the year declined by 96.1% YoY.
• Net profit margins during the year declined from 21.7% in FY23 to 0.6% in FY24.

JM FINANCIAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	32,715	47,607	45.5%
Other income	Rs m	3,684	714	-80.6%
Total Revenues	Rs m	36,399	48,322	32.8%
Gross profit	Rs m	18,046	18,965	5.1%
Depreciation	Rs m	419	530	26.7%
Interest	Rs m	11,785	15,615	32.5%
Profit before tax	Rs m	9,526	3,534	-62.9%
Tax	Rs m	2,439	3,259	33.6%
Profit after tax	Rs m	7,088	275	-96.1%
Gross profit margin	%	55.2	39.8
Effective tax rate	%	25.6	92.2
Net profit margin	%	21.7	0.6

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JM FINANCIAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 51 billion as compared to Rs 52 billion in FY23, thereby witnessing an decrease of -2.9%.
• Long-term debt stood at Rs 133 billion as compared to Rs 126 billion during FY23, a growth of 5.7%.
• Current assets fell 0% and stood at Rs 270 billion, while fixed assets rose 17% and stood at Rs 25 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 295 billion as against Rs 291 billion during FY23, thereby witnessing a growth of 1%.

JM FINANCIAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	81,197	84,717	4.3
Current Liabilities	Rs m	52,162	50,670	-2.9
Long-term Debt	Rs m	126,255	133,477	5.7
Total Liabilities	Rs m	291,252	294,896	1.3
Current assets	Rs m	269,745	269,723	0.0
Fixed Assets	Rs m	21,507	25,173	17.0
Total Assets	Rs m	291,252	294,896	1.3

JM FINANCIAL Cash Flow Statement Analysis

• JM FINANCIAL's cash flow from operating activities (CFO) during FY24 stood at Rs 36 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -21 billion, an improvement of 253.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 17 billion from the Rs -7 billion net cash flows seen during FY23.

JM FINANCIAL 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	-23,072	36,351	-
Cash Flow from Investing Activities	Rs m	-5,916	-20,899	-
Cash Flow from Financing Activities	Rs m	21,599	1,625	-92.5%
Net Cash Flow	Rs m	-7,389	17,076	-

Current Valuations for JM FINANCIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 99.1, stands at 344.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 103.2 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	34.3	49.8
TTM Earnings per share	Rs	7.4	0.3
Diluted earnings per share	Rs	7.4	0.3
Price to Cash Flow	x	7.6	103.2
TTM P/E ratio	x	8.0	344.1
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	67,576	83,160
Dividends per share (Unadj.)	Rs	1.8	2.0

Ratio Analysis for JM FINANCIAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.3x during FY24, from 5.2x 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 deteriorated and stood at 1.2x during FY24, from 1.8x 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 0.3% during FY24, from 8.7% 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 8.8% during FY24, from 10.3% 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 5.4% during FY24, from 6.5% 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	5.2	5.3
Debtors’ Days	Days	14	4
Interest coverage	x	1.8	1.2
Debt to equity ratio	x	1.6	1.6
Return on assets	%	6.5	5.4
Return on equity	%	8.7	0.3
Return on capital employed	%	10.3	8.8

To see how JM FINANCIAL has performed over the last 5 years, please visit here.

JM FINANCIAL Share Price Performance

Over the last one year, JM FINANCIAL share price has moved up from Rs 75.5 to Rs 99.1, registering a gain of Rs 23.6 or around 31.2%.

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for JM FINANCIAL and quarterly results for JM FINANCIAL)