JUBILANT INDUSTRIES 2023-24 Annual Report Analysis

Mon, 9 Sep

JUBILANT INDUSTRIES 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.

JUBILANT INDUSTRIES Income Statement Analysis

• Operating income during the year fell 14.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY24 as against 7.1% in FY23.
• Depreciation charges increased by 5.9% and finance costs increased by 0.1% YoY, respectively.
• Other income declined by 51.5% YoY.
• Net profit for the year declined by 44.7% YoY.
• Net profit margins during the year declined from 3.6% in FY23 to 2.3% in FY24.

JUBILANT INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,729	12,533	-14.9%
Other income	Rs m	29	14	-51.5%
Total Revenues	Rs m	14,758	12,547	-15.0%
Gross profit	Rs m	1,049	759	-27.6%
Depreciation	Rs m	142	150	5.9%
Interest	Rs m	214	214	0.1%
Profit before tax	Rs m	722	409	-43.4%
Tax	Rs m	194	117	-39.8%
Profit after tax	Rs m	528	292	-44.7%
Gross profit margin	%	7.1	6.1
Effective tax rate	%	26.9	28.6
Net profit margin	%	3.6	2.3

Don't Miss: Key Information for Long-term Investors

JUBILANT INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 10.9%.
• Long-term debt down at Rs 120 million as compared to Rs 236 million during FY23, a fall of 49.3%.
• Current assets rose 15% and stood at Rs 6 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 11%.

JUBILANT INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,011	2,289	13.8
Current Liabilities	Rs m	4,154	4,606	10.9
Long-term Debt	Rs m	236	120	-49.3
Total Liabilities	Rs m	6,660	7,398	11.1
Current assets	Rs m	4,867	5,596	15.0
Fixed Assets	Rs m	1,793	1,802	0.5
Total Assets	Rs m	6,660	7,398	11.1

JUBILANT INDUSTRIES Cash Flow Statement Analysis

• JUBILANT INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 759 million, an improvement of 424.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -187 million, an improvement of 2.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -470 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 101 million from the Rs -20 million net cash flows seen during FY23.

JUBILANT INDUSTRIES 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	145	759	424.9%
Cash Flow from Investing Activities	Rs m	-182	-187	-
Cash Flow from Financing Activities	Rs m	21	-470	-
Net Cash Flow	Rs m	-20	101	-

Current Valuations for JUBILANT INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an decline from the EPS of Rs 35.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,846.5, stands at 80.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.2 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 31.4 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	977.4	831.6
TTM Earnings per share	Rs	35.0	19.4
Diluted earnings per share	Rs	35.0	19.4
Price to Cash Flow	x	8.7	31.4
TTM P/E ratio	x	11.0	80.8
Price / Book Value ratio	x	3.3	6.1
Market Cap	Rs m	6,678	13,899
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JUBILANT INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x 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 deteriorated and stood at 2.9x during FY24, from 4.4x 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 12.8% during FY24, from 26.3% 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 25.9% during FY24, from 41.6% 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 6.8% during FY24, from 11.1% 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	1.2
Debtors’ Days	Days	64	72
Interest coverage	x	4.4	2.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.1	6.8
Return on equity	%	26.3	12.8
Return on capital employed	%	41.6	25.9

To see how JUBILANT INDUSTRIES has performed over the last 5 years, please visit here.

JUBILANT INDUSTRIES Share Price Performance

Over the last one year, JUBILANT INDUSTRIES share price has moved up from Rs 720.0 to Rs 1,846.5, registering a gain of Rs 1,126.6 or around 156.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,412.4 (down 0.1%). Over the last one year it has moved up from 28,280.7 to 43,412.4, a gain of 15,132 points (up 53.5%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

(To know more, check out historical annual results for JUBILANT INDUSTRIES and quarterly results for JUBILANT INDUSTRIES)