JAIN IRRIGATION 2023-24 Annual Report Analysis

Mon, 29 Jul

JAIN IRRIGATION 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.

JAIN IRRIGATION Income Statement Analysis

• Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY24 as against 9.6% in FY23.
• Depreciation charges increased by 2.9% and finance costs decreased by 10.8% YoY, respectively.
• Other income declined by 93.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 1.5% in FY24.

JAIN IRRIGATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	57,476	61,473	7.0%
Other income	Rs m	668	46	-93.1%
Total Revenues	Rs m	58,144	61,519	5.8%
Gross profit	Rs m	5,490	7,843	42.9%
Depreciation	Rs m	2,359	2,426	2.9%
Interest	Rs m	4,692	4,187	-10.8%
Profit before tax	Rs m	-893	1,277	NA
Tax	Rs m	315	366	16.3%
Profit after tax	Rs m	-1,208	910	NA
Gross profit margin	%	9.6	12.8
Effective tax rate	%	-35.3	28.7
Net profit margin	%	-2.1	1.5

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JAIN IRRIGATION Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 40 billion as compared to Rs 42 billion in FY23, thereby witnessing an decrease of -5.6%.
• Long-term debt stood at Rs 15 billion as compared to Rs 14 billion during FY23, a growth of 5.7%.
• Current assets rose 1% and stood at Rs 54 billion, while fixed assets rose 3% and stood at Rs 57 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 111 billion as against Rs 109 billion during FY23, thereby witnessing a growth of 2%.

JAIN IRRIGATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	51,358	53,917	5.0
Current Liabilities	Rs m	42,145	39,780	-5.6
Long-term Debt	Rs m	13,860	14,649	5.7
Total Liabilities	Rs m	109,058	111,130	1.9
Current assets	Rs m	53,622	54,210	1.1
Fixed Assets	Rs m	55,436	56,920	2.7
Total Assets	Rs m	109,058	111,130	1.9

JAIN IRRIGATION Cash Flow Statement Analysis

• JAIN IRRIGATION's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 1,088.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -301 million from the Rs -2 billion net cash flows seen during FY23.

JAIN IRRIGATION 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	450	5,348	1,088.8%
Cash Flow from Investing Activities	Rs m	31,378	-3,149	-
Cash Flow from Financing Activities	Rs m	-33,648	-2,506	-
Net Cash Flow	Rs m	-1,821	-301	-

Current Valuations for JAIN IRRIGATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs -1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 76.3, stands at 56.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 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	92.1	89.5
TTM Earnings per share	Rs	-1.9	1.3
Diluted earnings per share	Rs	-1.8	1.4
Price to Cash Flow	x	19.8	11.1
TTM P/E ratio	x	-24.4	56.3
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	23,320	36,965
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAIN IRRIGATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 1.3x during FY24, from 0.8x 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 improved and stood at 1.7% during FY24, from -2.4% 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 8.0% during FY24, from 5.8% 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 4.6% during FY24, from 3.2% 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	1.4
Debtors’ Days	Days	139	132
Interest coverage	x	0.8	1.3
Debt to equity ratio	x	0.3	0.3
Return on assets	%	3.2	4.6
Return on equity	%	-2.4	1.7
Return on capital employed	%	5.8	8.0

To see how JAIN IRRIGATION has performed over the last 5 years, please visit here.

JAIN IRRIGATION Share Price Performance

Over the last one year, JAIN IRRIGATION share price has moved up from Rs 44.5 to Rs 76.3, registering a gain of Rs 31.8 or around 71.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,519.1 (up 1.5%). Over the last one year it has moved up from 43,473.8 to 74,519.1, a gain of 31,045 points (up 71.4%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for JAIN IRRIGATION and quarterly results for JAIN IRRIGATION)