JINDAL WORLDWIDE 2020-21 Annual Report Analysis

Wed, 31 Mar

JINDAL WORLDWIDE 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 WORLDWIDE Income Statement Analysis

• Operating income during the year fell 22.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY21 as against 6.3% in FY20.
• Depreciation charges decreased by 35.7% and finance costs decreased by 19.1% YoY, respectively.
• Other income grew by 272.3% YoY.
• Net profit for the year grew by 55.6% YoY.
• Net profit margins during the year grew from 1.3% in FY20 to 2.6% in FY21.

JINDAL WORLDWIDE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,990	16,996	-22.7%
Other income	Rs m	66	247	272.3%
Total Revenues	Rs m	22,056	17,243	-21.8%
Gross profit	Rs m	1,390	1,163	-16.3%
Depreciation	Rs m	455	293	-35.7%
Interest	Rs m	610	493	-19.1%
Profit before tax	Rs m	392	624	59.2%
Tax	Rs m	108	182	68.6%
Profit after tax	Rs m	284	442	55.6%
Gross profit margin	%	6.3	6.8
Effective tax rate	%	27.5	29.2
Net profit margin	%	1.3	2.6

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JINDAL WORLDWIDE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -18.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 25.9%.
• Current assets fell 3% and stood at Rs 8 billion, while fixed assets fell 23% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 11 billion during FY20, thereby witnessing a fall of 9%.

JINDAL WORLDWIDE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,762	4,204	11.8
Current Liabilities	Rs m	5,682	4,622	-18.7
Long-term Debt	Rs m	1,508	1,118	-25.9
Total Liabilities	Rs m	11,123	10,130	-8.9
Current assets	Rs m	7,958	7,680	-3.5
Fixed Assets	Rs m	3,166	2,449	-22.6
Total Assets	Rs m	11,123	10,130	-8.9

JINDAL WORLDWIDE Cash Flow Statement Analysis

• JINDAL WORLDWIDE's cash flow from operating activities (CFO) during FY21 stood at Rs 979 million, an improvement of 352.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 670 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 131 million from the Rs -132 million net cash flows seen during FY20.

JINDAL WORLDWIDE 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	216	979	352.6%
Cash Flow from Investing Activities	Rs m	2,150	670	-68.9%
Cash Flow from Financing Activities	Rs m	-2,498	-1,518	-
Net Cash Flow	Rs m	-132	131	-

Current Valuations for JINDAL WORLDWIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an improvement from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.2, stands at 21.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	109.7	84.8
TTM Earnings per share	Rs	1.4	2.2
Diluted earnings per share	Rs	1.4	2.2
Price to Cash Flow	x	8.7	12.7
TTM P/E ratio	x	19.8	21.8
Price / Book Value ratio	x	3.0	2.2
Market Cap	Rs m	11,249	9,319
Dividends per share (Unadj.)	Rs	0.1	0.2

Ratio Analysis for JINDAL WORLDWIDE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.4x 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 2.3x during FY21, from 1.6x 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 10.5% during FY21, from 7.6% 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 21.0% during FY21, from 19.0% 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 9.2% during FY21, from 8.0% 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	1.4	1.7
Debtors’ Days	Days	710	819
Interest coverage	x	1.6	2.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	8.0	9.2
Return on equity	%	7.6	10.5
Return on capital employed	%	19.0	21.0

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

JINDAL WORLDWIDE Share Price Performance

Over the last one year, JINDAL WORLDWIDE share price has moved up from Rs 32.0 to Rs 48.2, registering a gain of Rs 16.2 or around 50.5%.

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

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

Read: Latest Annual Report Analysis of JINDAL WORLDWIDE