JAYS HREE TEA 2022-23 Annual Report Analysis

Tue, 20 Feb

JAYS HREE TEA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

JAYS HREE TEA Income Statement Analysis

• Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.0% in FY23 as against 0.2% in FY22.
• Depreciation charges decreased by 2.9% and finance costs decreased by 4.2% YoY, respectively.
• Other income grew by 30.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.6% in FY22 to 6.5% in FY23.

JAYS HREE TEA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,258	8,126	12.0%
Other income	Rs m	321	417	30.1%
Total Revenues	Rs m	7,579	8,543	12.7%
Gross profit	Rs m	-12	-325	NA
Depreciation	Rs m	236	230	-2.9%
Interest	Rs m	383	367	-4.2%
Profit before tax	Rs m	-311	-505	NA
Tax	Rs m	-353	21	NA
Profit after tax	Rs m	43	-526	NA
Gross profit margin	%	-0.2	-4.0
Effective tax rate	%	113.7	-4.2
Net profit margin	%	0.6	-6.5

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JAYS HREE TEA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 2.3%.
• Long-term debt stood at Rs 532 million as compared to Rs 514 million during FY22, a growth of 3.6%.
• Current assets rose 39% and stood at Rs 4 billion, while fixed assets fell 22% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 3%.

JAYS HREE TEA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,747	2,214	-19.4
Current Liabilities	Rs m	5,350	5,473	2.3
Long-term Debt	Rs m	514	532	3.6
Total Liabilities	Rs m	9,048	8,760	-3.2
Current assets	Rs m	2,729	3,788	38.8
Fixed Assets	Rs m	6,269	4,913	-21.6
Total Assets	Rs m	9,048	8,760	-3.2

JAYS HREE TEA Cash Flow Statement Analysis

• JAYS HREE TEA's cash flow from operating activities (CFO) during FY23 stood at Rs -364 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 886 million, an improvement of 160.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -577 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -55 million from the Rs 18 million net cash flows seen during FY22.

JAYS HREE TEA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	105	-364	-
Cash Flow from Investing Activities	Rs m	340	886	160.8%
Cash Flow from Financing Activities	Rs m	-427	-577	-
Net Cash Flow	Rs m	18	-55	-

Current Valuations for JAYS HREE TEA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -23.2, an decline from the EPS of Rs 1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.9, stands at -4.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at -7.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	320.2	358.4
TTM Earnings per share	Rs	1.9	-23.2
Diluted earnings per share	Rs	1.5	-18.2
Price to Cash Flow	x	9.6	-7.6
TTM P/E ratio	x	66.5	-4.5
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	2,382	2,239
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAYS HREE TEA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY23, from 0.5x during FY22. 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 -0.4x during FY23, from 0.2x during FY22. 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 -23.7% during FY23, from 1.6% during FY23. 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 -5.0% during FY23, from 2.2% during FY22. 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 -1.8% during FY23, from 4.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.5	0.7
Debtors’ Days	Days	277	233
Interest coverage	x	0.2	-0.4
Debt to equity ratio	x	0.2	0.2
Return on assets	%	4.7	-1.8
Return on equity	%	1.6	-23.7
Return on capital employed	%	2.2	-5.0

To see how JAYS HREE TEA has performed over the last 5 years, please visit here.

JAYS HREE TEA Share Price Performance

Over the last one year, JAYS HREE TEA share price has moved down from Rs 92.4 to Rs 78.9, registering a loss of Rs 13.5 or around 14.6%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for JAYS HREE TEA and quarterly results for JAYS HREE TEA)