JINDAL CAP. 2021-22 Annual Report Analysis

Fri, 1 Jul

JINDAL CAP. 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 CAP. Income Statement Analysis

• Operating income during the year rose 42.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.4% in FY22 as against 11.3% in FY21.
• Depreciation charges increased by 58.5% and finance costs decreased by 23.1% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 10.1% YoY.
• Net profit margins during the year declined from 6.6% in FY21 to 5.1% in FY22.

JINDAL CAP. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	61	87	42.3%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	61	87	42.3%
Gross profit	Rs m	7	8	17.7%
Depreciation	Rs m	0	1	58.5%
Interest	Rs m	0	0	-23.1%
Profit before tax	Rs m	6	7	17.0%
Tax	Rs m	2	3	29.1%
Profit after tax	Rs m	4	4	10.1%
Gross profit margin	%	11.3	9.4
Effective tax rate	%	36.2	40.0
Net profit margin	%	6.6	5.1

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JINDAL CAP. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 million as compared to Rs 1 million in FY21, thereby witnessing an increase of 72.5%.
• Current assets rose 10% and stood at Rs 88 million, while fixed assets fell 30% and stood at Rs 1 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 89 million as against Rs 82 million during FY21, thereby witnessing a growth of 9%.

JINDAL CAP. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	79	87	9.7
Current Liabilities	Rs m	1	2	72.5
Long-term Debt	Rs m	1	0	-100.0
Total Liabilities	Rs m	82	89	9.1
Current assets	Rs m	80	88	10.1
Fixed Assets	Rs m	2	1	-30.4
Total Assets	Rs m	82	89	9.1

JINDAL CAP. Cash Flow Statement Analysis

• JINDAL CAP.'s cash flow from operating activities (CFO) during FY22 stood at Rs 6 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 0 million, an improvement of 0.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 8 million, an improvement of 148% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 14 million from the Rs 0 million net cash flows seen during FY21.

JINDAL CAP. 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	-3	6	-
Cash Flow from Investing Activities	Rs m	0	0	0.0%
Cash Flow from Financing Activities	Rs m	3	8	147.7%
Net Cash Flow	Rs m	0	14	4,706.9%

Current Valuations for JINDAL CAP.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 25.5, stands at 43.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 36.8 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	8.4	12.0
TTM Earnings per share	Rs	0.6	0.6
Diluted earnings per share	Rs	0.6	0.6
Price to Cash Flow	x	19.8	36.8
TTM P/E ratio	x	21.7	43.0
Price / Book Value ratio	x	0.8	2.2
Market Cap	Rs m	65	188
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JINDAL CAP.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 35.7x during FY22, from 56.0x 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 75.2x during FY22, from 49.8x 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 5.1% during FY22, from 5.1% 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 8.7% during FY22, from 8.1% 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 declined and down at 5.1% during FY22, from 5.1% 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	56.0	35.7
Debtors’ Days	Days	157,455	16,642,563
Interest coverage	x	49.8	75.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.1	5.1
Return on equity	%	5.1	5.1
Return on capital employed	%	8.1	8.7

To see how JINDAL CAP. has performed over the last 5 years, please visit here.

JINDAL CAP. Share Price Performance

Over the last one year, JINDAL CAP. share price has moved up from Rs 13.1 to Rs 25.5, registering a gain of Rs 12.4 or around 94.5%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for JINDAL CAP. and quarterly results for JINDAL CAP.)

Read: Latest Annual Report Analysis of JINDAL CAP.