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JINDAL STEEL & POWER 2021-22 Annual Report Analysis

Sat, 17 Sep

JINDAL STEEL & POWER has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JINDAL STEEL & POWER Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.1% in FY22 as against 29.2% in FY21.
• Depreciation charges decreased by 45.0% and finance costs decreased by 42.2% YoY, respectively.
• Other income declined by 46.8% YoY.
• Net profit for the year grew by 94.2% YoY.
• Net profit margins during the year grew from 9.9% in FY21 to 18.3% in FY22.

JINDAL STEEL & POWER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	431,454	453,305	5.1%
Other income	Rs m	7,539	4,010	-46.8%
Total Revenues	Rs m	438,993	457,316	4.2%
Gross profit	Rs m	126,064	136,352	8.2%
Depreciation	Rs m	38,128	20,968	-45.0%
Interest	Rs m	34,684	20,065	-42.2%
Profit before tax	Rs m	60,790	99,330	63.4%
Tax	Rs m	18,120	16,483	-9.0%
Profit after tax	Rs m	42,670	82,846	94.2%
Gross profit margin	%	29.2	30.1
Effective tax rate	%	29.8	16.6
Net profit margin	%	9.9	18.3

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JINDAL STEEL & POWER Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 182 billion as compared to Rs 196 billion in FY21, thereby witnessing an decrease of -7.2%.
• Long-term debt down at Rs 84 billion as compared to Rs 202 billion during FY21, a fall of 58.3%.
• Current assets fell 13% and stood at Rs 180 billion, while fixed assets fell 13% and stood at Rs 500 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 793 billion as against Rs 782 billion during FY21, thereby witnessing a growth of 1%.

JINDAL STEEL & POWER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	318,144	356,247	12.0
Current Liabilities	Rs m	195,907	181,790	-7.2
Long-term Debt	Rs m	202,304	84,343	-58.3
Total Liabilities	Rs m	781,516	792,695	1.4
Current assets	Rs m	206,303	180,206	-12.6
Fixed Assets	Rs m	575,214	500,347	-13.0
Total Assets	Rs m	781,516	792,695	1.4

JINDAL STEEL & POWER Cash Flow Statement Analysis

• JINDAL STEEL & POWER's cash flow from operating activities (CFO) during FY22 stood at Rs 160 billion, an improvement of 34.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -23 billion, an improvement of 23.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -151 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -14 billion from the Rs 55 billion net cash flows seen during FY21.

JINDAL STEEL & POWER Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	119,609	160,478	34.2%
Cash Flow from Investing Activities	Rs m	-18,842	-23,313	-
Cash Flow from Financing Activities	Rs m	-46,120	-151,196	-
Net Cash Flow	Rs m	54,647	-14,031	-

Current Valuations for JINDAL STEEL & POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.2, an improvement from the EPS of Rs 41.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 435.3, stands at 5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	423.0	444.4
TTM Earnings per share	Rs	41.8	81.2
Diluted earnings per share	Rs	41.8	81.2
Price to Cash Flow	x	4.3	4.3
TTM P/E ratio	x	7.3	5.7
Price / Book Value ratio	x	0.7	1.3
Market Cap	Rs m	212,571	451,006
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for JINDAL STEEL & POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.1x during FY21. 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 6.0x during FY22, from 2.8x during FY21. 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 23.3% during FY22, from 13.4% during FY22. 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 27.1% during FY22, from 18.3% during FY21. 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 13.0% during FY22, from 9.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	1.0
Debtors’ Days	Days	2	1
Interest coverage	x	2.8	6.0
Debt to equity ratio	x	0.6	0.2
Return on assets	%	9.9	13.0
Return on equity	%	13.4	23.3
Return on capital employed	%	18.3	27.1

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 386.6 to Rs 435.3, registering a gain of Rs 48.7 or around 12.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,164.0 (down 2.0%). Over the last one year it has moved down from 20,477.7 to 19,164.0, a loss of 1,314 points (down 6.4%).

Overall, the S&P BSE SENSEX is up 0.2% 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