JINDAL STEEL & POWER 2020-21 Annual Report Analysis

Wed, 31 Mar

JINDAL STEEL & POWER 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 STEEL & POWER Income Statement Analysis

• Operating income during the year rose 30.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.2% in FY21 as against 23.4% in FY20.
• Depreciation charges decreased by 1.4% and finance costs decreased by 17.6% YoY, respectively.
• Other income grew by 797.3% YoY.
• Net profit for the year declined by 1167.6% YoY.
• Net profit margins during the year grew from 1.2% in FY20 to 9.9% in FY21.

JINDAL STEEL & POWER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	331,171	431,454	30.3%
Other income	Rs m	840	7,539	797.3%
Total Revenues	Rs m	332,011	438,993	32.2%
Gross profit	Rs m	77,445	126,064	62.8%
Depreciation	Rs m	38,672	38,128	-1.4%
Interest	Rs m	42,071	34,684	-17.6%
Profit before tax	Rs m	-2,458	60,790	-2,572.8%
Tax	Rs m	1,539	18,120	1,077.7%
Profit after tax	Rs m	-3,997	42,670	-1,167.6%
Gross profit margin	%	23.4	29.2
Effective tax rate	%	-62.6	29.8
Net profit margin	%	-1.2	9.9

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JINDAL STEEL & POWER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 196 billion as compared to Rs 262 billion in FY20, thereby witnessing an decrease of -25.1%.
• Long-term debt down at Rs 202 billion as compared to Rs 279 billion during FY20, a fall of 27.5%.
• Current assets rose 9% and stood at Rs 206 billion, while fixed assets fell 22% and stood at Rs 575 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 782 billion as against Rs 927 billion during FY20, thereby witnessing a fall of 16%.

JINDAL STEEL & POWER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	321,363	318,144	-1.0
Current Liabilities	Rs m	261,712	195,907	-25.1
Long-term Debt	Rs m	278,965	202,304	-27.5
Total Liabilities	Rs m	926,700	781,516	-15.7
Current assets	Rs m	189,189	206,303	9.0
Fixed Assets	Rs m	737,511	575,214	-22.0
Total Assets	Rs m	926,700	781,516	-15.7

JINDAL STEEL & POWER Cash Flow Statement Analysis

• JINDAL STEEL & POWER's cash flow from operating activities (CFO) during FY21 stood at Rs 120 billion, an improvement of 35.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -19 billion, an improvement of 27.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -46 billion, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 55 billion from the Rs 3 billion net cash flows seen during FY20.

JINDAL STEEL & POWER 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	88,143	119,609	35.7%
Cash Flow from Investing Activities	Rs m	-14,756	-18,842	-
Cash Flow from Financing Activities	Rs m	-70,164	-46,120	-
Net Cash Flow	Rs m	3,223	54,647	1,595.6%

Current Valuations for JINDAL STEEL & POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.8, an improvement from the EPS of Rs -3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 343.9, stands at 9.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 2.6 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	324.7	423.0
TTM Earnings per share	Rs	-3.9	41.8
Diluted earnings per share	Rs	-3.9	41.8
Price to Cash Flow	x	2.4	2.6
TTM P/E ratio	x	-26.1	9.1
Price / Book Value ratio	x	0.4	0.7
Market Cap	Rs m	143,644	212,571
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JINDAL STEEL & POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 0.7x 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 2.8x during FY21, from 0.9x 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 13.4% during FY21, from -1.2% 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 18.3% during FY21, from 6.6% 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 9.9% during FY21, from 4.1% 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	0.7	1.1
Debtors’ Days	Days	4	2
Interest coverage	x	0.9	2.8
Debt to equity ratio	x	0.9	0.6
Return on assets	%	4.1	9.9
Return on equity	%	-1.2	13.4
Return on capital employed	%	6.6	18.3

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 82.2 to Rs 343.9, registering a gain of Rs 261.7 or around 318.3%.

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 STEEL & POWER and quarterly results for JINDAL STEEL & POWER)

Read: Latest Annual Report Analysis of JINDAL STEEL & POWER