Revenue and Profitability Breakdown
For the year ended 31 March 2019, Jay Ushin reported total operating income of approximately ₹855 crores, entirely derived from net sales, as other operating income was negligible. The cost of raw materials constituted the largest expense, amounting to over ₹700 crores, reflecting the company's significant reliance on input costs. Employee expenses stood at ₹76.45 crores, while other operating expenses aggregated to nearly ₹50 crores. The company managed to keep other costs such as power, manufacturing, and selling expenses at minimal or zero levels, indicating a focused cost structure.
Operating profit before depreciation and other income was recorded at ₹34.83 crores, translating to an operating margin of just over 4%. Including other income of ₹9.78 crores, the operating profit (PBDIT) rose to ₹44.61 crores. After accounting for interest expenses of ₹16.06 crores and depreciation of ₹15.93 crores, the profit before tax stood at ₹12.63 crores. Post tax deductions of ₹1.13 crores, the consolidated net profit was ₹11.51 crores, yielding a modest net profit margin of 1.35%. Earnings per share were reported at ₹29.82, reflecting the company's ability to generate shareholder returns despite tight margins.
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Balance Sheet and Capital Structure
Jay Ushin's balance sheet as of March 2019 shows total assets and liabilities both at ₹375.56 crores, indicating a balanced financial position. Shareholders' funds amounted to ₹74.75 crores, supported by equity capital of ₹3.86 crores and reserves of ₹70.88 crores. The company carried a total debt of ₹128.43 crores, split between long-term borrowings of ₹86.28 crores and short-term borrowings of ₹71.18 crores, highlighting a moderate leverage level.
On the asset side, net block of fixed assets was ₹168.07 crores, with capital work in progress at ₹2.92 crores. Non-current assets, including long-term loans and advances, totalled ₹189.50 crores. Current assets stood at ₹186.06 crores, comprising inventories of ₹89.44 crores, sundry debtors of ₹65.40 crores, and cash and bank balances of ₹2.95 crores. However, net current assets were negative at ₹40.82 crores, signalling working capital pressures.
Cash Flow and Operational Efficiency
The company generated a profit before tax of ₹12 crores during the year, with adjustments amounting to ₹22 crores. Changes in working capital contributed positively by ₹11 crores, resulting in a cash flow after working capital adjustments of ₹47 crores. Operating activities yielded a cash inflow of ₹42 crores, while investing activities accounted for an outflow of ₹23 crores. Financing activities saw a cash outflow of ₹18 crores, leaving the net cash position largely unchanged. The closing cash and cash equivalents stood at ₹2 crores, up from ₹1 crore at the start of the year.
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Summary and Investor Considerations
Jay Ushin's historical performance for the fiscal year ending March 2019 reflects a company with stable revenue generation but constrained profitability. The operating profit margin of just over 4% and net margin of 1.35% suggest tight cost controls are essential for sustainable earnings growth. The company’s leverage is moderate, with total debt representing a significant portion of the capital structure, which investors should monitor in relation to interest coverage and cash flow generation.
Working capital management appears to be an area requiring attention, given the negative net current assets, which could impact liquidity. However, the positive cash flow from operations and steady earnings per share provide some reassurance regarding operational efficiency. The book value per share of ₹193.43 indicates a solid net asset base relative to the equity capital.
Overall, Jay Ushin’s financials portray a microcap entity with consistent sales but modest profitability and a capital structure that demands prudent financial management. Investors should weigh these factors alongside sector dynamics and market conditions when considering exposure to this stock.
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