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JINDAL STEEL & POWER 2022-23 Annual Report Analysis

Thu, 10 Aug

JINDAL STEEL & POWER has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

JINDAL STEEL & POWER Income Statement Analysis

• Operating income during the year fell 0.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.7% in FY23 as against 30.1% in FY22.
• Depreciation charges increased by 28.3% and finance costs decreased by 19.4% YoY, respectively.
• Other income declined by 4.9% YoY.
• Net profit for the year declined by 61.5% YoY.
• Net profit margins during the year declined from 18.3% in FY22 to 7.1% in FY23.

JINDAL STEEL & POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	453,305	449,177	-0.9%
Other income	Rs m	4,010	3,814	-4.9%
Total Revenues	Rs m	457,316	452,991	-0.9%
Gross profit	Rs m	136,352	84,115	-38.3%
Depreciation	Rs m	20,968	26,910	28.3%
Interest	Rs m	20,065	16,164	-19.4%
Profit before tax	Rs m	99,330	44,855	-54.8%
Tax	Rs m	16,483	12,923	-21.6%
Profit after tax	Rs m	82,846	31,932	-61.5%
Gross profit margin	%	30.1	18.7
Effective tax rate	%	16.6	28.8
Net profit margin	%	18.3	7.1

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JINDAL STEEL & POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 208 billion as compared to Rs 182 billion in FY22, thereby witnessing an increase of 14.5%.
• Long-term debt down at Rs 72 billion as compared to Rs 84 billion during FY22, a fall of 14.5%.
• Current assets rose 15% and stood at Rs 208 billion, while fixed assets rose 8% and stood at Rs 540 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 747 billion as against Rs 793 billion during FY22, thereby witnessing a fall of 6%.

JINDAL STEEL & POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	356,247	387,066	8.7
Current Liabilities	Rs m	181,790	208,098	14.5
Long-term Debt	Rs m	84,343	72,076	-14.5
Total Liabilities	Rs m	792,695	747,383	-5.7
Current assets	Rs m	180,206	207,695	15.3
Fixed Assets	Rs m	500,347	539,516	7.8
Total Assets	Rs m	792,695	747,383	-5.7

JINDAL STEEL & POWER Cash Flow Statement Analysis

• JINDAL STEEL & POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 73 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -40 billion, an improvement of 72.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -25 billion, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 billion from the Rs -14 billion net cash flows seen during FY22.

JINDAL STEEL & POWER Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	160,478	72,755	-54.7%
Cash Flow from Investing Activities	Rs m	-23,313	-40,185	-
Cash Flow from Financing Activities	Rs m	-151,196	-25,005	-
Net Cash Flow	Rs m	-14,031	7,566	-

Current Valuations for JINDAL STEEL & POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.3, an decline from the EPS of Rs 81.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 678.7, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	444.4	440.3
TTM Earnings per share	Rs	81.2	31.3
Diluted earnings per share	Rs	81.2	31.3
Price to Cash Flow	x	5.2	8.0
TTM P/E ratio	x	6.6	21.7
Price / Book Value ratio	x	1.3	1.2
Market Cap	Rs m	451,006	472,607
Dividends per share (Unadj.)	Rs	3.0	2.0

Ratio Analysis for JINDAL STEEL & POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 1.0x during FY22. 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 3.8x during FY23, from 6.0x during FY22. 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 8.2% during FY23, from 23.3% during FY23. 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 13.3% during FY23, from 27.1% during FY22. 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 6.4% during FY23, from 13.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	1	1
Interest coverage	x	6.0	3.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	13.0	6.4
Return on equity	%	23.3	8.2
Return on capital employed	%	27.1	13.3

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 396.3 to Rs 678.7, registering a gain of Rs 282.4 or around 71.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,923.7 (up 2.3%). Over the last one year it has moved up from 18,935.6 to 21,923.7, a gain of 2,988 points (up 15.8%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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