JTEKT INDIA 2023-24 Annual Report Analysis

Mon, 22 Jul

JTEKT INDIA 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.

JTEKT INDIA Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY24 as against 9.0% in FY23.
• Depreciation charges increased by 11.3% and finance costs increased by 29.1% YoY, respectively.
• Other income grew by 34.2% YoY.
• Net profit for the year grew by 22.7% YoY.
• Net profit margins during the year grew from 4.3% in FY23 to 4.8% in FY24.

JTEKT INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,439	22,455	9.9%
Other income	Rs m	86	115	34.2%
Total Revenues	Rs m	20,525	22,570	10.0%
Gross profit	Rs m	1,835	2,225	21.2%
Depreciation	Rs m	732	814	11.3%
Interest	Rs m	47	61	29.1%
Profit before tax	Rs m	1,142	1,465	28.3%
Tax	Rs m	271	396	46.3%
Profit after tax	Rs m	871	1,069	22.7%
Gross profit margin	%	9.0	9.9
Effective tax rate	%	23.7	27.0
Net profit margin	%	4.3	4.8

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JTEKT INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 29.5%.
• Long-term debt stood at Rs 596 million as compared to Rs 309 million during FY23, a growth of 92.7%.
• Current assets rose 16% and stood at Rs 7 billion, while fixed assets rose 27% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 21%.

JTEKT INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,028	8,217	16.9
Current Liabilities	Rs m	3,209	4,157	29.5
Long-term Debt	Rs m	309	596	92.7
Total Liabilities	Rs m	11,314	13,727	21.3
Current assets	Rs m	5,700	6,620	16.1
Fixed Assets	Rs m	5,612	7,107	26.6
Total Assets	Rs m	11,314	13,727	21.3

JTEKT INDIA Cash Flow Statement Analysis

• JTEKT INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 81.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 103.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 280 million, an improvement of 200% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 288 million from the Rs -172 million net cash flows seen during FY23.

JTEKT INDIA 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	952	1,725	81.2%
Cash Flow from Investing Activities	Rs m	-844	-1,717	-
Cash Flow from Financing Activities	Rs m	-280	280	-
Net Cash Flow	Rs m	-172	288	-

Current Valuations for JTEKT INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an improvement from the EPS of Rs 3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 204.5, stands at 48.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 19.2 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	83.6	88.3
TTM Earnings per share	Rs	3.6	4.2
Diluted earnings per share	Rs	3.4	4.2
Price to Cash Flow	x	16.4	19.2
TTM P/E ratio	x	30.2	48.6
Price / Book Value ratio	x	4.6	4.4
Market Cap	Rs m	32,669	36,241
Dividends per share (Unadj.)	Rs	0.5	0.6

Ratio Analysis for JTEKT INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.8x 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 24.9x during FY24, from 25.1x 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 13.0% during FY24, from 12.4% 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 17.3% during FY24, from 16.2% 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 8.2% during FY24, from 8.1% 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	1.8	1.6
Debtors’ Days	Days	501	537
Interest coverage	x	25.1	24.9
Debt to equity ratio	x	0.0	0.1
Return on assets	%	8.1	8.2
Return on equity	%	12.4	13.0
Return on capital employed	%	16.2	17.3

To see how JTEKT INDIA has performed over the last 5 years, please visit here.

JTEKT INDIA Share Price Performance

Over the last one year, JTEKT INDIA share price has moved up from Rs 154.6 to Rs 204.5, registering a gain of Rs 49.9 or around 32.3%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for JTEKT INDIA and quarterly results for JTEKT INDIA)