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JINDAL STAINLESS 2017-18 Annual Report Analysis
Sat, 31 Mar

JINDAL STAINLESS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JINDAL STAINLESS Income Statement Analysis

  • Operating income during the year rose 32.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY18 as against 13.8% in FY17.
  • Depreciation charges decreased by 1.6% and finance costs decreased by 28.2% YoY, respectively.
  • Other income grew by 75.5% YoY.
  • Net profit for the year grew by 360.8% YoY.
  • Net profit margins during the year grew from 0.8% in FY17 to 2.9% in FY18.

JINDAL STAINLESS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 86,325 114,586 32.7%
Other income Rs m 257 451 75.5%
Total Revenues Rs m 86,582 115,037 32.9%
Gross profit Rs m 11,914 13,448 12.9%
Depreciation Rs m 3,252 3,200 -1.6%
Interest Rs m 7,879 5,661 -28.2%
Profit before tax Rs m 1,040 5,038 384.3%
Tax Rs m 325 1,740 436.0%
Profit after tax Rs m 716 3,297 360.8%
Gross profit margin % 13.8 11.7
Effective tax rate % 31.2 34.5
Net profit margin % 0.8 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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JINDAL STAINLESS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 43 billion as compared to Rs 57 billion in FY17, thereby witnessing an decrease of -23.9%.
  • Long-term debt stood at Rs 36 billion as compared to Rs 34 billion during FY17, a growth of 5.0%.
  • Current assets fell 1% and stood at Rs 38 billion, while fixed assets fell 1% and stood at Rs 71 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 108 billion as against Rs 109 billion during FY17, thereby witnessing a fall of 1%.

JINDAL STAINLESS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 17,877 24,652 37.9
 
Current Liabilities Rs m 57,031 43,376 -23.9
Long-term Debt Rs m 33,820 35,509 5.0
Total Liabilities Rs m 109,324 108,341 -0.9
 
Current assets Rs m 37,925 37,734 -0.5
Fixed Assets Rs m 71,399 70,607 -1.1
Total Assets Rs m 109,324 108,341 -0.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JINDAL STAINLESS Cash Flow Statement Analysis

  • JINDAL STAINLESS's cash flow from operating activities (CFO) during FY18 stood at Rs 15 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion, an improvement of 525.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -13 billion, an improvement of 75% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 13 million from the Rs -209 million net cash flows seen during FY17.

JINDAL STAINLESS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 51,151 14,525 -71.6%
Cash Flow from Investing Activities Rs m -309 -1,932 -
Cash Flow from Financing Activities Rs m -51,056 -12,573 -
Net Cash Flow Rs m -209 13 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JINDAL STAINLESS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs 1.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 78.4, stands at 12.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 216.1 239.1
TTM Earnings per share Rs 1.8 6.9
Diluted earnings per share Rs 1.4 6.3
Price to Cash Flow x 9.4 7.3
TTM P/E ratio x 92.5 12.9
Price / Book Value ratio x 1.0 1.9
Market Cap Rs m 18,356 47,671
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JINDAL STAINLESS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.7x during FY17. 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 1.9x during FY18, from 1.1x during FY17. 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 13.4% during FY18, from 4.0% during FY18. 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 17.8% during FY18, from 17.3% during FY17. 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 8.3% during FY18, from 7.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.7 0.9
Debtors’ Days Days 4 3
Interest coverage x 1.1 1.9
Debt to equity ratio x 1.9 1.4
Return on assets % 7.9 8.3
Return on equity % 4.0 13.4
Return on capital employed % 17.3 17.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

JINDAL STAINLESS Share Price Performance

Over the last one year, JINDAL STAINLESS share price has moved up from Rs 71.2 to Rs 78.4, registering a gain of Rs 7.2 or around 10.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,322.0 (down 2.0%). Over the last one year it has moved up from 11,804.5 to 13,322.0, a gain of 1,518 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of JINDAL STAINLESS?

JINDAL STAINLESS currently trades at Rs 694.5 per share. You can check out the latest share price performance of JINDAL STAINLESS here...

What was the revenue of JINDAL STAINLESS in FY18? How does it compare to earlier years?

The revenues of JINDAL STAINLESS stood at Rs 115,037 m in FY18, which was up 32.9% compared to Rs 86,582 m reported in FY17.

JINDAL STAINLESS' revenue has grown from Rs 66,695 m in FY16 to Rs 115,037 m in FY18.

Over the past 3 years, the revenue of JINDAL STAINLESS has grown at a CAGR of 31.3%.

What was the net profit of JINDAL STAINLESS in FY18? How does it compare to earlier years?

The net profit of JINDAL STAINLESS stood at Rs 3,297 m in FY18, which was up 360.8% compared to Rs 716 m reported in FY17.

This compares to a net loss of Rs -5,561 m in FY16.

Over the past 3 years, JINDAL STAINLESS net profit has grown at a CAGR of NaN%.

What does the cash flow statement of JINDAL STAINLESS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of JINDAL STAINLESS reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 14,525 m as compared to Rs 51,151 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -1,932 m as compared to Rs -309 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -12,573 m as compared to Rs -51,056 m in FY17.

Here's the cash flow statement of JINDAL STAINLESS for the past 3 years.

(Rs m)FY16FY17FY18
From Operations9,65851,15114,525
From Investments10,528-309-1,932
From Financial Activity-19,719-51,056-12,573
Net Cashflow468-20913

What does the Key Ratio analysis of JINDAL STAINLESS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of JINDAL STAINLESS reveals:

  • Operating profit margins witnessed a fall and stood at 11.7% in FY18 as against 13.8% in FY17.
  • Net profit margins grew from 0.8% in FY17 to 2.9% in FY18.
  • Debt to Equity ratio for FY18 stood at 1.4 as compared to 1.9 in FY17.

Here's the ratio/financial analysis of JINDAL STAINLESS for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)8.013.811.7
Net Profit Margin (%)-8.40.82.9
Debt to Equity Ratio (x)5.51.91.4

Read: Latest Annual Report Analysis of JINDAL STAINLESS

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