JINDAL DRILLING 2017-18 Annual Report Analysis

Sat, 31 Mar

JINDAL DRILLING has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JINDAL DRILLING Income Statement Analysis

• Operating income during the year fell 59.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 522.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 48.3% in FY18 as against 4.6% in FY17.
• Depreciation charges decreased by 0.6% and finance costs decreased by 63.3% YoY, respectively.
• Other income grew by 118.0% YoY.
• Net profit for the year declined by 213.5% YoY.
• Net profit margins during the year declined from 4.6% in FY17 to 12.9% in FY18.

JINDAL DRILLING Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	3,716	1,489	-59.9%
Other income	Rs m	262	570	118.0%
Total Revenues	Rs m	3,978	2,060	-48.2%
Gross profit	Rs m	170	-719	-522.6%
Depreciation	Rs m	92	92	-0.6%
Interest	Rs m	103	38	-63.3%
Profit before tax	Rs m	237	-278	-217.5%
Tax	Rs m	67	-86	-227.4%
Profit after tax	Rs m	170	-193	-213.5%
Gross profit margin	%	4.6	-48.3
Effective tax rate	%	28.4	30.8
Net profit margin	%	4.6	-12.9

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JINDAL DRILLING Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 1 billion in FY17, thereby witnessing an decrease of -11.5%.
• Current assets fell 12% and stood at Rs 3 billion, while fixed assets rose 1% and stood at Rs 15 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 18 billion as against Rs 19 billion during FY17, thereby witnessing a fall of 2%.

JINDAL DRILLING Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	16,898	16,834	-0.4
Current Liabilities	Rs m	1,338	1,185	-11.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	18,528	18,245	-1.5
Current assets	Rs m	3,165	2,780	-12.2
Fixed Assets	Rs m	15,363	15,465	0.7
Total Assets	Rs m	18,528	18,245	-1.5

JINDAL DRILLING Cash Flow Statement Analysis

• JINDAL DRILLING's cash flow from operating activities (CFO) during FY18 stood at Rs -667 million, an improvement of 9.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 857 million, an improvement of 2.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -191 million, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 0 million from the Rs 18 million net cash flows seen during FY17.

JINDAL DRILLING Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	-611	-667	-
Cash Flow from Investing Activities	Rs m	840	857	2.0%
Cash Flow from Financing Activities	Rs m	-211	-191	-
Net Cash Flow	Rs m	18	0	-99.0%

Current Valuations for JINDAL DRILLING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.6, an decline from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 149.3, stands at -27.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at -53.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	128.2	51.4
TTM Earnings per share	Rs	5.9	-6.6
Diluted earnings per share	Rs	5.9	-6.6
Price to Cash Flow	x	18.5	-53.5
TTM P/E ratio	x	28.5	-27.9
Price / Book Value ratio	x	0.3	0.3
Market Cap	Rs m	4,803	5,391
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for JINDAL DRILLING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY18, from 2.4x during FY17. 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 -6.4x during FY18, from 3.3x during FY17. 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 -1.1% during FY18, from 1.0% during FY18. 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 -1.4% during FY18, from 2.0% during FY17. 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 -0.8% during FY18, from 1.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	2.4	2.3
Debtors’ Days	Days	850	2,502
Interest coverage	x	3.3	-6.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.5	-0.8
Return on equity	%	1.0	-1.1
Return on capital employed	%	2.0	-1.4

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

JINDAL DRILLING Share Price Performance

Over the last one year, JINDAL DRILLING share price has moved down from Rs 167.4 to Rs 149.3, registering a loss of Rs 18.1 or around 10.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

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

Read: Latest Annual Report Analysis of JINDAL DRILLING