JINDAL CAP. 2022-23 Annual Report Analysis

Tue, 7 Nov

JINDAL CAP. 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 CAP. Income Statement Analysis

• Operating income during the year fell 42.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 70.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.9% in FY23 as against 9.4% in FY22.
• Depreciation charges decreased by 47.7% and finance costs increased by 320.0% YoY, respectively.
• Other income grew by 583.3% YoY.
• Net profit for the year declined by 73.0% YoY.
• Net profit margins during the year declined from 5.1% in FY22 to 2.4% in FY23.

JINDAL CAP. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	87	50	-42.4%
Other income	Rs m	0	0	583.3%
Total Revenues	Rs m	87	50	-42.0%
Gross profit	Rs m	8	2	-70.0%
Depreciation	Rs m	1	0	-47.7%
Interest	Rs m	0	0	320.0%
Profit before tax	Rs m	7	2	-72.0%
Tax	Rs m	3	1	-70.4%
Profit after tax	Rs m	4	1	-73.0%
Gross profit margin	%	9.4	4.9
Effective tax rate	%	40.0	42.3
Net profit margin	%	5.1	2.4

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

JINDAL CAP. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 million as compared to Rs 2 million in FY22, thereby witnessing an increase of 1.2%.
• Long-term debt stood at Rs 11 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 16% and stood at Rs 102 million, while fixed assets fell 94% and stood at Rs 0 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 102 million as against Rs 89 million during FY22, thereby witnessing a growth of 15%.

JINDAL CAP. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	87	89	2.2
Current Liabilities	Rs m	2	2	1.2
Long-term Debt	Rs m	0	11	0.0
Total Liabilities	Rs m	89	102	14.6
Current assets	Rs m	88	102	16.4
Fixed Assets	Rs m	1	0	-94.4
Total Assets	Rs m	89	102	14.6

JINDAL CAP. Cash Flow Statement Analysis

• JINDAL CAP.'s cash flow from operating activities (CFO) during FY23 stood at Rs 14 million, an improvement of 144.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -14 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs 14 million net cash flows seen during FY22.

JINDAL CAP. 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	6	14	144.8%
Cash Flow from Investing Activities	Rs m	0	1	-5,200.0%
Cash Flow from Financing Activities	Rs m	8	-14	-
Net Cash Flow	Rs m	14	2	-87.7%

Current Valuations for JINDAL CAP.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 34.3, stands at 263.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 124.6 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	12.0	6.9
TTM Earnings per share	Rs	0.6	0.2
Diluted earnings per share	Rs	0.6	0.2
Price to Cash Flow	x	41.8	124.6
TTM P/E ratio	x	39.0	263.1
Price / Book Value ratio	x	2.2	2.2
Market Cap	Rs m	188	192
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JINDAL CAP.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 41.1x during FY23, from 35.7x 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 6.0x during FY23, from 75.2x 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 1.4% during FY23, from 5.1% 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 2.5% during FY23, from 8.7% 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 1.6% during FY23, from 5.1% 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	35.7	41.1
Debtors’ Days	Days	16,642,563	0
Interest coverage	x	75.2	6.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.1	1.6
Return on equity	%	5.1	1.4
Return on capital employed	%	8.7	2.5

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 26.4 to Rs 34.3, registering a gain of Rs 7.9 or around 30.0%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

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