JINDAL STEEL & POWER 2018-19 Annual Report Analysis

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JINDAL STEEL & POWER 2018-19 Annual Report Analysis
Mon, 9 Sep

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 41.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 29.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.3% in FY19 as against 23.1% in FY18.
  • Depreciation charges increased by 41.1% and finance costs increased by 10.3% YoY, respectively.
  • Other income grew by 435.2% YoY.
  • Net profit for the year declined by 133.8% YoY.
  • Net profit margins during the year grew from 5.8% in FY18 to 1.4% 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 279,727 395,195 41.3%
Other income Rs m 29 157 435.2%
Total Revenues Rs m 279,757 395,352 41.3%
Gross profit Rs m 64,691 84,056 29.9%
Depreciation Rs m 38,830 54,804 41.1%
Interest Rs m 38,657 42,642 10.3%
Profit before tax Rs m -12,767 -13,233 3.7%
Tax Rs m -2,398 -3,902 62.7%
Profit after tax Rs m -16,155 5,453 -133.8%
Gross profit margin % 23.1 21.3
Effective tax rate % 18.8 29.5
Net profit margin % -5.8 1.4
* 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 FY19 stood at Rs 214 billion as compared to Rs 195 billion in FY18, thereby witnessing an increase of 10.0%.
  • Long-term debt down at Rs 299 billion as compared to Rs 330 billion during FY18, a fall of 9.2%.
  • Current assets fell 0% and stood at Rs 143 billion, while fixed assets rose 4% and stood at Rs 670 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 896 billion as against Rs 892 billion during FY18, thereby witnessing a growth of 0%.

JINDAL STEEL & POWER Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 303,798 324,228 6.7
 
Current Liabilities Rs m 194,517 214,035 10.0
Long-term Debt Rs m 329,559 299,402 -9.2
Total Liabilities Rs m 892,304 895,853 0.4
 
Current assets Rs m 143,130 143,114 0.0
Fixed Assets Rs m 646,193 669,980 3.7
Total Assets Rs m 892,304 895,853 0.4
* 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 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: 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 5.6, an improvement from the EPS of Rs -16.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 97.9, stands at -3.5 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 1.5 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 289.0 408.3
TTM Earnings per share Rs -16.7 5.6
Diluted earnings per share Rs -17.3 5.8
Price to Cash Flow x 4.2 1.5
TTM P/E ratio x -3.6 -3.5
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 94,762 91,520
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 deteriorated and stood at 0.7x during FY19, from 0.7x 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 improved and stood at 0.7x during FY19, from 0.7x 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 improved and stood at 1.7% 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 improved and stood at 7.1% during FY19, from 3.2% 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 improved and stood at 5.4% during FY19, from 2.5% 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 0.7 0.7
Debtors’ Days Days 24 28
Interest coverage x 0.7 0.7
Debt to equity ratio x 1.1 0.9
Return on assets % 2.5 5.4
Return on equity % -5.3 1.7
Return on capital employed % 3.2 7.1
* 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 down from Rs 219.8 to Rs 97.9, registering a loss of Rs 121.9 or around 55.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 8,835.2 (up 0.9%). Over the last one year it has moved down from 14,045.5 to 8,835.2, a loss of 5,210 points (down 37.1%).

Overall, the S&P BSE SENSEX is down 2.7% 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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JINDAL STEEL & POWER Announces Quarterly Results (3QFY20); Net Profit Down 150.5% (Quarterly Result Update)

Jan 20, 2020 | Updated on Jan 20, 2020

For the quarter ended December 2019, JINDAL STEEL & POWER has posted a net profit of Rs 2 bn (down 150.5% YoY). Sales on the other hand came in at Rs 93 bn (down 2.8% YoY). Read on for a complete analysis of JINDAL STEEL & POWER's quarterly results.

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May 24, 2019 | Updated on May 24, 2019

For the quarter ended March 2019, JINDAL STEEL & POWER has posted a net profit of Rs 27 bn (down 536.4% YoY). Sales on the other hand came in at Rs 102 bn (up 18.1% YoY). Read on for a complete analysis of JINDAL STEEL & POWER's quarterly results.

JINDAL STEEL & POWER 2017-18 Annual Report Analysis (Annual Result Update)

Dec 20, 2018 | Updated on Dec 20, 2018

Here's an analysis of the annual report of JINDAL STEEL & POWER for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of JINDAL STEEL & POWER. Also includes updates on the valuation of JINDAL STEEL & POWER.

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