Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



War Profits: A Potential 33x Opportunity by 2030

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
* 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 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%
* 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 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
* 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 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
* 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 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)

Annual Report FAQs

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

JINDAL STEEL & POWER currently trades at Rs 396.3 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 FY21? How does it compare to earlier years?

The revenues of JINDAL STEEL & POWER stood at Rs 438,993 m in FY21, which was up 32.2% compared to Rs 332,011 m reported in FY20.

JINDAL STEEL & POWER's revenue has grown from Rs 197,160 m in FY17 to Rs 438,993 m in FY21.

Over the past 5 years, the revenue of JINDAL STEEL & POWER has grown at a CAGR of 22.2%.

What was the net profit of JINDAL STEEL & POWER in FY21? How does it compare to earlier years?

The net profit of JINDAL STEEL & POWER stood at Rs 42,670 m in FY21, which was down -1,167.6% compared to Rs -3,997 m reported in FY20.

This compares to a net loss of Rs -24,115 m in FY19 and a net loss of Rs -16,242 m in FY18.

Over the past 5 years, JINDAL STEEL & POWER net profit has grown at a CAGR of NaN%.

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 FY21 and stood at Rs 119,609 m as compared to Rs 88,143 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -18,842 m as compared to Rs -14,756 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -46,120 m as compared to Rs -70,164 m in FY20.

Here's the cash flow statement of JINDAL STEEL & POWER for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations68,49877,24390,26988,143119,609
From Investments-19,991-14,312-8,321-14,756-18,842
From Financial Activity-51,077-62,756-82,614-70,164-46,120
Net Cashflow-2,564174-6663,22354,647

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 down at 29.2% in FY21 as against 23.4% in FY20.
  • Net profit margins grew from 1.2% in FY20 to 9.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.6 as compared to 0.9 in FY20.

Here's the ratio/financial analysis of JINDAL STEEL & POWER for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)22.321.819.523.429.2
Net Profit Margin (%)-13.1-6.0-6.8-1.29.9
Debt to Equity Ratio (x)1.11.10.90.90.6

Equitymaster requests your view! Post a comment on "JINDAL STEEL & POWER 2020-21 Annual Report Analysis". Click here!