JINDAL DRILLING 2020-21 Annual Report Analysis

Wed, 31 Mar

JINDAL DRILLING has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

JINDAL DRILLING Income Statement Analysis

• Operating income during the year rose 84.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 82.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.3% in FY21 as against 18.5% in FY20.
• Depreciation charges increased by 25.7% and finance costs increased by 119.1% YoY, respectively.
• Other income declined by 75.9% YoY.
• Net profit for the year declined by 65.0% YoY.
• Net profit margins during the year declined from 12.1% in FY20 to 2.3% in FY21.

JINDAL DRILLING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,162	3,979	84.0%
Other income	Rs m	336	81	-75.9%
Total Revenues	Rs m	2,498	4,059	62.5%
Gross profit	Rs m	399	727	82.2%
Depreciation	Rs m	258	324	25.7%
Interest	Rs m	144	315	119.1%
Profit before tax	Rs m	334	169	-49.4%
Tax	Rs m	72	77	7.4%
Profit after tax	Rs m	262	92	-65.0%
Gross profit margin	%	18.5	18.3
Effective tax rate	%	21.6	45.7
Net profit margin	%	12.1	2.3

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

JINDAL DRILLING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 67.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 16.8%.
• Current assets rose 44% and stood at Rs 5 billion, while fixed assets fell 14% and stood at Rs 13 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 18 billion during FY20, thereby witnessing a fall of 4%.

JINDAL DRILLING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	12,760	11,216	-12.1
Current Liabilities	Rs m	2,349	3,941	67.7
Long-term Debt	Rs m	2,165	1,801	-16.8
Total Liabilities	Rs m	17,964	17,230	-4.1
Current assets	Rs m	3,129	4,517	44.3
Fixed Assets	Rs m	14,835	12,713	-14.3
Total Assets	Rs m	17,964	17,230	-4.1

JINDAL DRILLING Cash Flow Statement Analysis

• JINDAL DRILLING's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 269.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -257 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -852 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 803 million from the Rs 17 million net cash flows seen during FY20.

JINDAL DRILLING Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	517	1,912	269.9%
Cash Flow from Investing Activities	Rs m	-2,718	-257	-
Cash Flow from Financing Activities	Rs m	2,219	-852	-
Net Cash Flow	Rs m	17	803	4,593.0%

Current Valuations for JINDAL DRILLING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.2, an decline from the EPS of Rs 9.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 89.9, stands at 17.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	74.6	137.3
TTM Earnings per share	Rs	9.0	3.2
Diluted earnings per share	Rs	9.0	3.2
Price to Cash Flow	x	2.5	5.2
TTM P/E ratio	x	5.0	17.4
Price / Book Value ratio	x	0.2	0.2
Market Cap	Rs m	2,442	2,173
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 1.1x during FY21, from 1.3x during FY20. 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 1.5x during FY21, from 3.3x during FY20. 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 0.8% during FY21, from 2.1% during FY21. 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 3.7% during FY21, from 3.2% during FY20. 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 2.4% during FY21, from 2.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	1.1
Debtors’ Days	Days	2,137	1,522
Interest coverage	x	3.3	1.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.3	2.4
Return on equity	%	2.1	0.8
Return on capital employed	%	3.2	3.7

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 up from Rs 45.4 to Rs 89.9, registering a gain of Rs 44.5 or around 98.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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