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JINDAL STAINLESS 2017-18 Annual Report Analysis

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JINDAL STAINLESS 2017-18 Annual Report Analysis
Thu, 14 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 25.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.5% in FY18 as against 12.6% 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 316.1% YoY.
  • Net profit margins during the year grew from 0.9% in FY17 to 3.0% in FY18.

JINDAL STAINLESS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 92,787 116,377 25.4%
Other income Rs m 257 451 75.5%
Total Revenues Rs m 93,044 116,828 25.6%
Gross profit Rs m 11,656 13,403 15.0%
Depreciation Rs m 3,252 3,200 -1.6%
Interest Rs m 7,879 5,661 -28.2%
Profit before tax Rs m 782 4,993 538.6%
Tax Rs m 325 1,740 436.0%
Profit after tax Rs m 830 3,455 316.1%
Gross profit margin % 12.6 11.5
Effective tax rate % 41.5 34.9
Net profit margin % 0.9 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JINDAL STAINLESS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 43 billion as compared to Rs 56 billion in FY17, thereby witnessing an decrease of -22.1%.
  • Long-term debt stood at Rs 36 billion as compared to Rs 34 billion during FY17, a growth of 5.0%.
  • Current assets rose 3% and stood at Rs 38 billion, while fixed assets fell 2% and stood at Rs 65 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 18,140 24,652 35.9
 
Current Liabilities Rs m 55,683 43,376 -22.1
Long-term Debt Rs m 33,820 35,509 5.0
Total Liabilities Rs m 109,099 108,341 -0.7
 
Current assets Rs m 36,572 37,734 3.2
Fixed Assets Rs m 66,171 64,669 -2.3
Total Assets Rs m 109,099 108,341 -0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JINDAL STAINLESS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an improvement from the EPS of Rs 2.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 40.6, stands at 4.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.4 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 232.3 242.8
TTM Earnings per share Rs 2.1 7.2
Diluted earnings per share Rs 3.7 15.3
Price to Cash Flow x 4.1 1.4
TTM P/E ratio x 7.3 4.1
Price / Book Value ratio x 1.0 1.9
Market Cap Rs m 16,218 9,191
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 14.0% during FY18, from 4.6% 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 18.0% during FY18, from 17.4% 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 8.4% during FY18, from 8.0% 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 35 28
Interest coverage x 1.1 1.9
Debt to equity ratio x 1.9 1.4
Return on assets % 8.0 8.4
Return on equity % 4.6 14.0
Return on capital employed % 17.4 18.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 87.4 to Rs 40.6, registering a loss of Rs 46.8 or around 53.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,181.4 (up 0.3%). Over the last one year it has moved down from 14,323.3 to 11,181.4, a loss of 3,142 points (down 21.9%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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

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Related Views on News

JINDAL STAINLESS Announces Quarterly Results (3QFY19); Net Profit Down 61.1% (Quarterly Result Update)

Feb 13, 2019 | Updated on Feb 13, 2019

For the quarter ended December 2018, JINDAL STAINLESS has posted a net profit of Rs 524 m (down 61.1% YoY). Sales on the other hand came in at Rs 31 bn (up 4.9% YoY). Read on for a complete analysis of JINDAL STAINLESS's quarterly results.

JINDAL STAINLESS Announces Quarterly Results (2QFY19); Net Profit Down 233.5% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, JINDAL STAINLESS has posted a net profit of Rs 364 m (down 233.5% YoY). Sales on the other hand came in at Rs 31 bn (up 18.2% YoY). Read on for a complete analysis of JINDAL STAINLESS's quarterly results.

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