JINDAL DRILLING 2022-23 Annual Report Analysis

Thu, 10 Aug

JINDAL DRILLING 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 DRILLING Income Statement Analysis

• Operating income during the year rose 22.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.8% in FY23 as against 26.1% in FY22.
• Depreciation charges increased by 44.7% and finance costs decreased by 7.4% YoY, respectively.
• Other income grew by 46.7% YoY.
• Net profit for the year grew by 50.3% YoY.
• Net profit margins during the year grew from 15.4% in FY22 to 18.9% in FY23.

JINDAL DRILLING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,199	5,122	22.0%
Other income	Rs m	320	469	46.7%
Total Revenues	Rs m	4,518	5,591	23.7%
Gross profit	Rs m	1,095	1,627	48.5%
Depreciation	Rs m	434	628	44.7%
Interest	Rs m	115	107	-7.4%
Profit before tax	Rs m	866	1,361	57.2%
Tax	Rs m	221	392	77.3%
Profit after tax	Rs m	645	969	50.3%
Gross profit margin	%	26.1	31.8
Effective tax rate	%	25.5	28.8
Net profit margin	%	15.4	18.9

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JINDAL DRILLING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 23.4%.
• Long-term debt down at Rs 799 million as compared to Rs 1 billion during FY22, a fall of 46.2%.
• Current assets rose 37% and stood at Rs 5 billion, while fixed assets rose 1% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 10%.

JINDAL DRILLING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,941	13,093	9.6
Current Liabilities	Rs m	2,963	3,656	23.4
Long-term Debt	Rs m	1,484	799	-46.2
Total Liabilities	Rs m	16,908	18,539	9.6
Current assets	Rs m	3,934	5,370	36.5
Fixed Assets	Rs m	12,975	13,168	1.5
Total Assets	Rs m	16,908	18,539	9.6

JINDAL DRILLING Cash Flow Statement Analysis

• JINDAL DRILLING's cash flow from operating activities (CFO) during FY23 stood at Rs 641 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -378 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -231 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 32 million from the Rs 106 million net cash flows seen during FY22.

JINDAL DRILLING 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	1,957	641	-67.3%
Cash Flow from Investing Activities	Rs m	-664	-378	-
Cash Flow from Financing Activities	Rs m	-1,187	-231	-
Net Cash Flow	Rs m	106	32	-69.8%

Current Valuations for JINDAL DRILLING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.4, an improvement from the EPS of Rs 22.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 424.7, stands at 12.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.7 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	144.9	176.7
TTM Earnings per share	Rs	22.2	33.4
Diluted earnings per share	Rs	22.2	33.4
Price to Cash Flow	x	6.4	4.7
TTM P/E ratio	x	10.7	12.4
Price / Book Value ratio	x	0.4	0.6
Market Cap	Rs m	5,138	7,438
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for JINDAL DRILLING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.3x 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 improved and stood at 13.7x during FY23, from 8.5x 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 improved and stood at 7.4% during FY23, from 5.4% 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 improved and stood at 10.6% during FY23, from 7.3% 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 improved and stood at 5.8% during FY23, from 4.5% 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	1.3	1.5
Debtors’ Days	Days	1,344	1,101
Interest coverage	x	8.5	13.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.5	5.8
Return on equity	%	5.4	7.4
Return on capital employed	%	7.3	10.6

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 227.8 to Rs 424.7, registering a gain of Rs 196.9 or around 86.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 43,553.3 (up 0.8%). Over the last one year it has moved up from 30,683.0 to 43,553.3, a gain of 12,870 points (up 41.9%).

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)