JINDAL STAINLESS (HISAR) 2020-21 Annual Report Analysis

Wed, 31 Mar

JINDAL STAINLESS (HISAR) has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

JINDAL STAINLESS (HISAR) Income Statement Analysis

• Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.4% in FY21 as against 10.2% in FY20.
• Depreciation charges decreased by 1.4% and finance costs decreased by 22.3% YoY, respectively.
• Other income declined by 19.3% YoY.
• Net profit for the year grew by 46.7% YoY.
• Net profit margins during the year grew from 4.0% in FY20 to 5.8% in FY21.

JINDAL STAINLESS (HISAR) Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	93,790	94,003	0.2%
Other income	Rs m	1,329	1,072	-19.3%
Total Revenues	Rs m	95,119	95,075	0.0%
Gross profit	Rs m	9,553	11,684	22.3%
Depreciation	Rs m	2,946	2,904	-1.4%
Interest	Rs m	3,228	2,509	-22.3%
Profit before tax	Rs m	4,708	7,343	56.0%
Tax	Rs m	959	1,845	92.3%
Profit after tax	Rs m	3,749	5,498	46.7%
Gross profit margin	%	10.2	12.4
Effective tax rate	%	20.4	25.1
Net profit margin	%	4.0	5.8

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JINDAL STAINLESS (HISAR) Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 31 billion as compared to Rs 25 billion in FY20, thereby witnessing an increase of 26.8%.
• Long-term debt down at Rs 13 billion as compared to Rs 18 billion during FY20, a fall of 31.6%.
• Current assets rose 19% and stood at Rs 34 billion, while fixed assets rose 5% and stood at Rs 40 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 74 billion as against Rs 67 billion during FY20, thereby witnessing a growth of 11%.

JINDAL STAINLESS (HISAR) Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	22,710	29,712	30.8
Current Liabilities	Rs m	24,810	31,461	26.8
Long-term Debt	Rs m	18,286	12,504	-31.6
Total Liabilities	Rs m	66,822	74,419	11.4
Current assets	Rs m	28,549	34,054	19.3
Fixed Assets	Rs m	38,273	40,365	5.5
Total Assets	Rs m	66,822	74,419	11.4

JINDAL STAINLESS (HISAR) Cash Flow Statement Analysis

• JINDAL STAINLESS (HISAR)'s cash flow from operating activities (CFO) during FY21 stood at Rs 13 billion, an improvement of 83.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 73.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -112 million from the Rs 10 million net cash flows seen during FY20.

JINDAL STAINLESS (HISAR) Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	7,098	13,053	83.9%
Cash Flow from Investing Activities	Rs m	-2,053	-3,554	-
Cash Flow from Financing Activities	Rs m	-5,035	-9,611	-
Net Cash Flow	Rs m	10	-112	-

Current Valuations for JINDAL STAINLESS (HISAR)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.3, an improvement from the EPS of Rs 15.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 125.7, stands at 5.4 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 2.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	397.5	398.4
TTM Earnings per share	Rs	15.9	23.3
Diluted earnings per share	Rs	15.9	23.3
Price to Cash Flow	x	1.4	2.8
TTM P/E ratio	x	2.5	5.4
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	15,530	23,782
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JINDAL STAINLESS (HISAR)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY21, from 1.2x during FY20. 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 improved and stood at 3.9x during FY21, from 2.5x during FY20. 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 18.5% during FY21, from 16.5% during FY21. 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 23.3% during FY21, from 19.4% during FY20. 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 10.8% during FY21, from 10.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.2	1.1
Debtors’ Days	Days	3	4
Interest coverage	x	2.5	3.9
Debt to equity ratio	x	0.8	0.4
Return on assets	%	10.4	10.8
Return on equity	%	16.5	18.5
Return on capital employed	%	19.4	23.3

To see how JINDAL STAINLESS (HISAR) has performed over the last 5 years, please visit here.

JINDAL STAINLESS (HISAR) Share Price Performance

Over the last one year, JINDAL STAINLESS (HISAR) share price has moved up from Rs 39.8 to Rs 125.7, registering a gain of Rs 85.9 or around 215.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for JINDAL STAINLESS (HISAR) and quarterly results for JINDAL STAINLESS (HISAR))

Read: Latest Annual Report Analysis of JINDAL STAINLESS (HISAR)