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JINDAL STEEL & POWER 2018-19 Annual Report Analysis
Sun, 31 Mar

JINDAL STEEL & POWER has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

JINDAL STEEL & POWER Income Statement Analysis

  • Operating income during the year rose 31.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY19 as against 21.8% in FY18.
  • Depreciation charges increased by 41.1% and finance costs increased by 7.6% YoY, respectively.
  • Other income declined by 12.8% YoY.
  • Net profit for the year grew by 48.5% YoY.
  • Net profit margins during the year declined from 6.0% in FY18 to 6.8% in FY19.

JINDAL STEEL & POWER Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 269,255 352,892 31.1%
Other income Rs m 1,968 1,716 -12.8%
Total Revenues Rs m 271,223 354,608 30.7%
Gross profit Rs m 58,818 68,753 16.9%
Depreciation Rs m 38,830 54,804 41.1%
Interest Rs m 40,595 43,682 7.6%
Profit before tax Rs m -18,641 -28,017 50.3%
Tax Rs m -2,398 -3,902 62.7%
Profit after tax Rs m -16,242 -24,115 48.5%
Gross profit margin % 21.8 19.5
Effective tax rate % 12.9 13.9
Net profit margin % -6.0 -6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

JINDAL STEEL & POWER Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 244 billion as compared to Rs 229 billion in FY18, thereby witnessing an increase of 6.3%.
  • Long-term debt down at Rs 299 billion as compared to Rs 330 billion during FY18, a fall of 9.2%.
  • Current assets fell 3% and stood at Rs 173 billion, while fixed assets fell 0% and stood at Rs 747 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 920 billion as against Rs 927 billion during FY18, thereby witnessing a fall of 1%.

JINDAL STEEL & POWER Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 303,626 320,381 5.5
 
Current Liabilities Rs m 229,094 243,564 6.3
Long-term Debt Rs m 329,559 299,402 -9.2
Total Liabilities Rs m 926,867 919,703 -0.8
 
Current assets Rs m 177,693 172,795 -2.8
Fixed Assets Rs m 749,174 746,908 -0.3
Total Assets Rs m 926,867 919,703 -0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JINDAL STEEL & POWER Cash Flow Statement Analysis

  • JINDAL STEEL & POWER's cash flow from operating activities (CFO) during FY19 stood at Rs 90 billion, an improvement of 16.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -83 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -666 million from the Rs 174 million net cash flows seen during FY18.

JINDAL STEEL & POWER Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 77,243 90,269 16.9%
Cash Flow from Investing Activities Rs m -14,312 -8,321 -
Cash Flow from Financing Activities Rs m -62,756 -82,614 -
Net Cash Flow Rs m 174 -666 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JINDAL STEEL & POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -24.9, an decline from the EPS of Rs -16.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 179.6, stands at -7.6 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 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 278.2 364.6
TTM Earnings per share Rs -16.8 -24.9
Diluted earnings per share Rs -15.9 -23.6
Price to Cash Flow x 9.9 6.1
TTM P/E ratio x -22.8 -7.6
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 192,210 187,927
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JINDAL STEEL & POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY19, from 0.8x during FY18. 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 0.4x during FY19, from 0.5x during FY18. 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 declined and down at -7.5% during FY19, from -5.3% during FY19. 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 declined and down at 2.5% during FY19, from 3.5% during FY18. 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 declined and down at 2.1% during FY19, from 2.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.8 0.7
Debtors’ Days Days 2 3
Interest coverage x 0.5 0.4
Debt to equity ratio x 1.1 0.9
Return on assets % 2.6 2.1
Return on equity % -5.3 -7.5
Return on capital employed % 3.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 219.3 to Rs 179.6, registering a loss of Rs 39.8 or around 18.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,355.1 (up 2.3%). Over the last one year it has moved down from 13,322.0 to 11,355.1, a loss of 1,967 points (down 14.8%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of JINDAL STEEL & POWER?

JINDAL STEEL & POWER currently trades at Rs 849.5 per share. You can check out the latest share price performance of JINDAL STEEL & POWER here...

What was the revenue of JINDAL STEEL & POWER in FY19? How does it compare to earlier years?

The revenues of JINDAL STEEL & POWER stood at Rs 354,608 m in FY19, which was up 30.7% compared to Rs 271,223 m reported in FY18.

JINDAL STEEL & POWER's revenue has grown from Rs 167,831 m in FY16 to Rs 354,608 m in FY19.

Over the past 4 years, the revenue of JINDAL STEEL & POWER has grown at a CAGR of 28.3%.

What was the net profit of JINDAL STEEL & POWER in FY19? How does it compare to earlier years?

The net loss of JINDAL STEEL & POWER stood at Rs -24,115 m in FY19, which was up 48.5% compared to Rs -16,242 m reported in FY18.

This compares to a net loss of Rs -25,402 m in FY17 and a net loss of Rs -30,863 m in FY16.

Over the past 4 years, JINDAL STEEL & POWER net profit has grown at a CAGR of -7.9%.

What does the cash flow statement of JINDAL STEEL & POWER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of JINDAL STEEL & POWER reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 90,269 m as compared to Rs 77,243 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -8,321 m as compared to Rs -14,312 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -82,614 m as compared to Rs -62,756 m in FY18.

Here's the cash flow statement of JINDAL STEEL & POWER for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations43,32868,49877,24390,269
From Investments-22,616-19,991-14,312-8,321
From Financial Activity-26,719-51,077-62,756-82,614
Net Cashflow-6,007-2,564174-666

What does the Key Ratio analysis of JINDAL STEEL & POWER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of JINDAL STEEL & POWER reveals:

  • Operating profit margins witnessed a fall and stood at 19.5% in FY19 as against 21.8% in FY18.
  • Net profit margins declined from 6.0% in FY18 to 6.8% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.9 as compared to 1.1 in FY18.

Here's the ratio/financial analysis of JINDAL STEEL & POWER for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)19.522.321.819.5
Net Profit Margin (%)-18.8-13.1-6.0-6.8
Debt to Equity Ratio (x)1.11.11.10.9

Read: Latest Annual Report Analysis of JINDAL STEEL & POWER

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