JINDAL POLYFILMS 2020-21 Annual Report Analysis

Wed, 31 Mar

JINDAL POLYFILMS 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 POLYFILMS Income Statement Analysis

• Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.0% in FY21 as against 18.9% in FY20.
• Depreciation charges increased by 22.4% and finance costs decreased by 37.9% YoY, respectively.
• Other income grew by 94.9% YoY.
• Net profit for the year grew by 61.9% YoY.
• Net profit margins during the year grew from 13.8% in FY20 to 19.4% in FY21.

JINDAL POLYFILMS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	35,455	40,823	15.1%
Other income	Rs m	736	1,434	94.9%
Total Revenues	Rs m	36,191	42,256	16.8%
Gross profit	Rs m	6,709	11,033	64.5%
Depreciation	Rs m	1,184	1,449	22.4%
Interest	Rs m	989	614	-37.9%
Profit before tax	Rs m	5,272	10,405	97.3%
Tax	Rs m	386	2,496	546.7%
Profit after tax	Rs m	4,886	7,909	61.9%
Gross profit margin	%	18.9	27.0
Effective tax rate	%	7.3	24.0
Net profit margin	%	13.8	19.4

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JINDAL POLYFILMS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 10 billion in FY20, thereby witnessing an decrease of -6.6%.
• Long-term debt down at Rs 6 billion as compared to Rs 9 billion during FY20, a fall of 40.0%.
• Current assets rose 11% and stood at Rs 19 billion, while fixed assets rose 9% and stood at Rs 29 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 48 billion as against Rs 44 billion during FY20, thereby witnessing a growth of 10%.

JINDAL POLYFILMS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,543	26,418	42.5
Current Liabilities	Rs m	10,073	9,404	-6.6
Long-term Debt	Rs m	9,486	5,691	-40.0
Total Liabilities	Rs m	43,835	48,177	9.9
Current assets	Rs m	17,577	19,498	10.9
Fixed Assets	Rs m	26,258	28,679	9.2
Total Assets	Rs m	43,835	48,177	9.9

JINDAL POLYFILMS Cash Flow Statement Analysis

• JINDAL POLYFILMS's cash flow from operating activities (CFO) during FY21 stood at Rs 9 billion, an improvement of 147.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 6.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -657 million from the Rs 2 billion net cash flows seen during FY20.

JINDAL POLYFILMS 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	3,688	9,114	147.1%
Cash Flow from Investing Activities	Rs m	-4,150	-4,434	-
Cash Flow from Financing Activities	Rs m	2,771	-5,336	-
Net Cash Flow	Rs m	2,291	-657	-

Current Valuations for JINDAL POLYFILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 180.6, an improvement from the EPS of Rs 111.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 740.4, stands at 4.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 2.6 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	809.7	932.2
TTM Earnings per share	Rs	111.6	180.6
Diluted earnings per share	Rs	111.6	180.6
Price to Cash Flow	x	1.4	2.6
TTM P/E ratio	x	1.8	4.0
Price / Book Value ratio	x	0.5	0.9
Market Cap	Rs m	9,787	24,657
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for JINDAL POLYFILMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 1.7x 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 improved and stood at 18.0x during FY21, from 6.3x 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 improved and stood at 29.9% during FY21, from 26.4% 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 34.3% during FY21, from 22.3% 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 17.7% during FY21, from 13.4% 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	1.7	2.1
Debtors’ Days	Days	130	93
Interest coverage	x	6.3	18.0
Debt to equity ratio	x	0.5	0.2
Return on assets	%	13.4	17.7
Return on equity	%	26.4	29.9
Return on capital employed	%	22.3	34.3

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

JINDAL POLYFILMS Share Price Performance

Over the last one year, JINDAL POLYFILMS share price has moved up from Rs 200.2 to Rs 740.4, registering a gain of Rs 540.2 or around 269.9%.

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

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

Read: Latest Annual Report Analysis of JINDAL POLYFILMS