JINDAL HOTELS 2021-22 Annual Report Analysis

Wed, 22 Jun

JINDAL HOTELS 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 HOTELS Income Statement Analysis

• Operating income during the year rose 92.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 608.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.5% in FY22 as against 7.7% in FY21.
• Depreciation charges decreased by 0.7% and finance costs increased by 2.5% YoY, respectively.
• Other income grew by 346.7% YoY.
• Net profit for the year declined by 78.1% YoY.
• Net profit margins during the year grew from 70.4% in FY21 to 8.0% in FY22.

JINDAL HOTELS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	156	299	92.0%
Other income	Rs m	1	5	346.7%
Total Revenues	Rs m	157	304	93.9%
Gross profit	Rs m	-12	61	-608.2%
Depreciation	Rs m	49	49	-0.7%
Interest	Rs m	48	49	2.5%
Profit before tax	Rs m	-107	-31	-71.3%
Tax	Rs m	2	-7	-423.6%
Profit after tax	Rs m	-110	-24	-78.1%
Gross profit margin	%	-7.7	20.5
Effective tax rate	%	-2.0	22.2
Net profit margin	%	-70.4	-8.0

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JINDAL HOTELS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 98 million as compared to Rs 62 million in FY21, thereby witnessing an increase of 58.5%.
• Long-term debt stood at Rs 578 million as compared to Rs 532 million during FY21, a growth of 8.7%.
• Current assets rose 34% and stood at Rs 155 million, while fixed assets rose 4% and stood at Rs 729 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 883 million as against Rs 818 million during FY21, thereby witnessing a growth of 8%.

JINDAL HOTELS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	177	168	-5.3
Current Liabilities	Rs m	62	98	58.5
Long-term Debt	Rs m	532	578	8.7
Total Liabilities	Rs m	818	883	8.0
Current assets	Rs m	115	155	34.2
Fixed Assets	Rs m	703	729	3.7
Total Assets	Rs m	818	883	8.0

JINDAL HOTELS Cash Flow Statement Analysis

• JINDAL HOTELS's cash flow from operating activities (CFO) during FY22 stood at Rs 60 million, an improvement of 356.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -138 million, an improvement of 6,278.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 59 million, an improvement of 1,738% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -19 million from the Rs 7 million net cash flows seen during FY21.

JINDAL HOTELS 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	13	60	356.8%
Cash Flow from Investing Activities	Rs m	-2	-138	-
Cash Flow from Financing Activities	Rs m	-4	59	-
Net Cash Flow	Rs m	7	-19	-

Current Valuations for JINDAL HOTELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an improvement from the EPS of Rs -16.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.1, stands at -9.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	23.4	42.7
TTM Earnings per share	Rs	-16.5	-3.4
Diluted earnings per share	Rs	-15.7	-3.4
Price to Cash Flow	x	-2.8	10.2
TTM P/E ratio	x	-1.5	-9.4
Price / Book Value ratio	x	0.9	1.5
Market Cap	Rs m	153	249
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JINDAL HOTELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.9x 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 0.4x during FY22, from -1.2x 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 -14.3% during FY22, from -61.8% 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 2.4% during FY22, from -8.4% 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 improved and stood at 2.8% during FY22, from -7.6% 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	1.9	1.6
Debtors’ Days	Days	163	115
Interest coverage	x	-1.2	0.4
Debt to equity ratio	x	3.0	3.4
Return on assets	%	-7.6	2.8
Return on equity	%	-61.8	-14.3
Return on capital employed	%	-8.4	2.4

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

JINDAL HOTELS Share Price Performance

Over the last one year, JINDAL HOTELS share price has moved down from Rs 34.6 to Rs 32.1, registering a loss of Rs 2.5 or around 7.2%.

Overall, the S&P BSE SENSEX is down 1.4% over the year.

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