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JINDAL STEEL & POWER 2017-18 Annual Report Analysis

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JINDAL STEEL & POWER 2017-18 Annual Report Analysis
Thu, 20 Dec

JINDAL STEEL & POWER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JINDAL STEEL & POWER Income Statement Analysis

  • Operating income during the year rose 29.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 37.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.1% in FY18 as against 21.7% in FY17.
  • Depreciation charges decreased by 1.7% and finance costs increased by 12.4% YoY, respectively.
  • Other income declined by 70.7% YoY.
  • Net profit for the year declined by 36.3% YoY.
  • Net profit margins during the year grew from 11.7% in FY17 to 5.8% in FY18.

JINDAL STEEL & POWER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 216,555 279,727 29.2%
Other income Rs m 100 29 -70.7%
Total Revenues Rs m 216,655 279,757 29.1%
Gross profit Rs m 47,092 64,691 37.4%
Depreciation Rs m 39,490 38,830 -1.7%
Interest Rs m 34,407 38,657 12.4%
Profit before tax Rs m -26,706 -12,767 -52.2%
Tax Rs m -5,027 -2,398 -52.3%
Profit after tax Rs m -25,375 -16,155 -36.3%
Gross profit margin % 21.7 23.1
Effective tax rate % 18.8 18.8
Net profit margin % -11.7 -5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JINDAL STEEL & POWER Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 195 billion as compared to Rs 209 billion in FY17, thereby witnessing an decrease of -6.8%.
  • Long-term debt stood at Rs 330 billion as compared to Rs 326 billion during FY17, a growth of 1.1%.
  • Current assets rose 11% and stood at Rs 143 billion, while fixed assets rose 4% and stood at Rs 646 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 892 billion as against Rs 906 billion during FY17, thereby witnessing a fall of 1%.

JINDAL STEEL & POWER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 300,505 303,798 1.1
 
Current Liabilities Rs m 208,722 194,531 -6.8
Long-term Debt Rs m 325,983 329,559 1.1
Total Liabilities Rs m 905,750 892,304 -1.5
 
Current assets Rs m 129,340 143,130 10.7
Fixed Assets Rs m 621,895 646,193 3.9
Total Assets Rs m 905,750 892,304 -1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JINDAL STEEL & POWER Cash Flow Statement Analysis

  • JINDAL STEEL & POWER's cash flow from operating activities (CFO) during FY18 stood at Rs 77 billion, an improvement of 12.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -14 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -63 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 174 million from the Rs -3 billion net cash flows seen during FY17.

JINDAL STEEL & POWER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 68,498 77,243 12.8%
Cash Flow from Investing Activities Rs m -19,991 -14,312 -
Cash Flow from Financing Activities Rs m -51,077 -62,756 -
Net Cash Flow Rs m -2,564 174 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JINDAL STEEL & POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.7, an improvement from the EPS of Rs -27.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 167.2, stands at 47.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 236.7 289.0
TTM Earnings per share Rs -27.7 -16.7
Diluted earnings per share Rs -27.1 -17.3
Price to Cash Flow x 10.9 6.9
TTM P/E ratio x 46.8 47.8
Price / Book Value ratio x 0.3 0.6
Market Cap Rs m 152,942 156,257
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JINDAL STEEL & POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.7x during FY18, from 0.6x during FY17. 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 0.7x during FY18, from 0.2x during FY17. 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 -5.3% during FY18, from -8.4% during FY18. 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 3.2% during FY18, from 0.6% during FY17. 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 2.5% during FY18, from 1.0% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.6 0.7
Debtors’ Days Days 29 24
Interest coverage x 0.2 0.7
Debt to equity ratio x 1.1 1.1
Return on assets % 1.0 2.5
Return on equity % -8.4 -5.3
Return on capital employed % 0.6 3.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how JINDAL STEEL & POWER has performed over the last 5 years, please visit here.

JINDAL STEEL & POWER Share Price Performance

Over the last one year, JINDAL STEEL & POWER share price has moved up from Rs 184.9 to Rs 167.2, registering a loss of Rs 17.7 or around 9.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,872.0 (down 1.3%). Over the last one year it has moved down from 14,440.6 to 11,872.0, a loss of 2,569 points (down 17.8%).

Overall, the S&P BSE SENSEX is up 7.5% over the year.

(To know more, check out historical annual results for JINDAL STEEL & POWER and quarterly results for JINDAL STEEL & POWER)

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Related Views on News

JINDAL STEEL & POWER Announces Quarterly Results (3QFY19); Net Profit Down 124.0% (Quarterly Result Update)

Feb 4, 2019 | Updated on Feb 4, 2019

For the quarter ended December 2018, JINDAL STEEL & POWER has posted a net profit of Rs 872 m (down 124.0% YoY). Sales on the other hand came in at Rs 96 bn (up 36.8% YoY). Read on for a complete analysis of JINDAL STEEL & POWER's quarterly results.

JINDAL STEEL & POWER Announces Quarterly Results (2QFY19); Net Profit Up 155.9% (Quarterly Result Update)

Nov 15, 2018 | Updated on Nov 15, 2018

For the quarter ended September 2018, JINDAL STEEL & POWER has posted a net profit of Rs 3 bn (up 155.9% YoY). Sales on the other hand came in at Rs 100 bn (up 63.0% YoY). Read on for a complete analysis of JINDAL STEEL & POWER's quarterly results.

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