How has been the historical performance of Jubilant Food?

Revenue Growth and Operating Performance

Over the seven-year period ending March 2025, Jubilant Food’s net sales surged from ₹3,563 crore in March 2019 to ₹8,142 crore in March 2025, representing a compound growth that underscores the company’s expanding market presence. The total operating income mirrored this trend, with no other operating income reported, indicating that core business activities have been the primary revenue drivers.

Raw material costs and purchase of finished goods have risen in tandem with sales, reaching ₹1,670 crore and ₹607 crore respectively in the latest fiscal year. Employee costs also increased steadily, reflecting the company’s scaling operations and workforce expansion. Other expenses, a significant component of total expenditure, climbed to ₹2,891 crore by March 2025, signalling increased operational outlays.

Despite rising costs, Jubilant Food maintained a healthy operating profit (PBDIT) excluding other income, which grew from ₹600 crore in March 2019 to ₹1,572 crore in March 2025. Including other income, operating profit reached ₹1,648 crore in the latest year, highlighting effective management of operational efficiencies.

Profitability and Margins

Jubilant Food’s operating profit margin (excluding other income) has seen a gradual decline from a peak of 25.2% in March 2022 to 19.3% in March 2025. This contraction suggests rising cost pressures or competitive pricing impacting margins. Gross profit margin also decreased from 22.0% in March 2022 to 13.8% in March 2025, reinforcing this observation.

Profit before tax (PBT) has fluctuated, peaking at ₹574 crore in March 2022 before declining to ₹314 crore in March 2025. Correspondingly, profit after tax (PAT) and consolidated net profit have also dipped, with net profit falling from ₹420 crore in March 2022 to ₹211 crore in March 2025. The PAT margin contracted from 9.5% to 2.9% over the same period, indicating tighter bottom-line performance.

Earnings per share (EPS) followed a similar pattern, decreasing from ₹6.37 in March 2022 to ₹3.19 in March 2025, reflecting the impact of reduced profitability on shareholder returns.

Balance Sheet and Financial Position

Jubilant Food’s total assets expanded significantly, rising from ₹3,685 crore in March 2021 to ₹8,404 crore in March 2025. This growth was supported by increased shareholder funds, which grew from ₹1,427 crore to ₹2,103 crore during the same period. The company’s reserves also strengthened, reaching nearly ₹1,971 crore by March 2025.

However, the company’s debt profile changed markedly, with total debt rising from zero in March 2021 to ₹1,502 crore in March 2025. Long-term borrowings increased substantially, indicating greater leverage to finance expansion or capital expenditure. Net block of fixed assets also grew from ₹878 crore to ₹4,107 crore, signalling significant investment in property, plant, and equipment.

Current liabilities have increased alongside current assets, but net current assets remained negative in recent years, suggesting working capital management challenges. Contingent liabilities have remained relatively stable, around ₹125 crore to ₹159 crore.

Cash Flow Trends

Operating cash flow has shown a positive trend, rising from ₹727 crore in March 2020 to ₹1,668 crore in March 2025, reflecting strong cash generation from core operations. Investing activities consistently recorded cash outflows, peaking at ₹850 crore in the latest year, consistent with capital expenditure growth. Financing activities have been mixed, with a significant outflow of ₹849 crore in March 2025, likely related to debt repayments or dividend payments.

Despite strong operating cash flows, net cash inflow/outflow has been volatile, with a slight net outflow of ₹31 crore in March 2025. Closing cash and cash equivalents stood at ₹99 crore, down from ₹131 crore the previous year.

Summary of Historical Performance

Jubilant Food’s historical performance reveals a company in expansion mode, with strong revenue growth and increasing operating profits. However, profitability margins have contracted in recent years, impacted by rising costs and increased interest expenses due to higher borrowings. The company’s balance sheet reflects substantial investments in fixed assets and a growing debt burden, which may weigh on future earnings.

Cash flow from operations remains robust, supporting ongoing capital expenditure, though net cash positions have fluctuated. Investors should weigh Jubilant Food’s growth potential against margin pressures and leverage risks when considering the company’s financial health and future prospects.

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