JINDAL STAINLESS 2022-23 Annual Report Analysis

Thu, 14 Sep

JINDAL STAINLESS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

JINDAL STAINLESS Income Statement Analysis

• Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY23 as against 15.1% in FY22.
• Depreciation charges decreased by 4.7% and finance costs decreased by 5.5% YoY, respectively.
• Other income declined by 40.5% YoY.
• Net profit for the year declined by 33.0% YoY.
• Net profit margins during the year declined from 9.5% in FY22 to 5.8% in FY23.

JINDAL STAINLESS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	327,327	356,970	9.1%
Other income	Rs m	3,314	1,970	-40.5%
Total Revenues	Rs m	330,641	358,941	8.6%
Gross profit	Rs m	49,304	36,253	-26.5%
Depreciation	Rs m	7,591	7,238	-4.7%
Interest	Rs m	3,437	3,246	-5.5%
Profit before tax	Rs m	41,590	27,740	-33.3%
Tax	Rs m	10,497	6,901	-34.3%
Profit after tax	Rs m	31,094	20,838	-33.0%
Gross profit margin	%	15.1	10.2
Effective tax rate	%	25.2	24.9
Net profit margin	%	9.5	5.8

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JINDAL STAINLESS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 110 billion as compared to Rs 87 billion in FY22, thereby witnessing an increase of 26.4%.
• Long-term debt stood at Rs 28 billion as compared to Rs 26 billion during FY22, a growth of 6.2%.
• Current assets rose 26% and stood at Rs 151 billion, while fixed assets rose 14% and stood at Rs 120 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 271 billion as against Rs 226 billion during FY22, thereby witnessing a growth of 20%.

JINDAL STAINLESS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	68,973	119,312	73.0
Current Liabilities	Rs m	86,664	109,505	26.4
Long-term Debt	Rs m	26,299	27,918	6.2
Total Liabilities	Rs m	225,759	271,402	20.2
Current assets	Rs m	119,948	151,117	26.0
Fixed Assets	Rs m	105,811	120,285	13.7
Total Assets	Rs m	225,759	271,402	20.2

JINDAL STAINLESS Cash Flow Statement Analysis

• JINDAL STAINLESS's cash flow from operating activities (CFO) during FY23 stood at Rs 31 billion, an improvement of 198.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -25 billion, an improvement of 151.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 2 billion net cash flows seen during FY22.

JINDAL STAINLESS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	10,381	30,956	198.2%
Cash Flow from Investing Activities	Rs m	-9,853	-24,817	-
Cash Flow from Financing Activities	Rs m	1,015	-3,863	-
Net Cash Flow	Rs m	1,543	2,289	48.3%

Current Valuations for JINDAL STAINLESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.3, an decline from the EPS of Rs 59.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 520.0, stands at 24.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 6.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	622.9	433.5
TTM Earnings per share	Rs	59.2	25.3
Diluted earnings per share	Rs	37.8	25.3
Price to Cash Flow	x	4.3	6.2
TTM P/E ratio	x	8.5	24.0
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	76,854	174,589
Dividends per share (Unadj.)	Rs	0.0	2.5

Ratio Analysis for JINDAL STAINLESS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.4x during FY22. 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 deteriorated and stood at 9.5x during FY23, from 13.1x during FY22. 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 declined and down at 17.5% during FY23, from 45.1% during FY23. 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 declined and down at 21.0% during FY23, from 47.3% during FY22. 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 declined and down at 8.9% during FY23, from 15.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	4	4
Interest coverage	x	13.1	9.5
Debt to equity ratio	x	0.4	0.2
Return on assets	%	15.3	8.9
Return on equity	%	45.1	17.5
Return on capital employed	%	47.3	21.0

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 138.9 to Rs 520.0, registering a gain of Rs 381.1 or around 274.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 23,611.8 (up 2.0%). Over the last one year it has moved up from 19,769.3 to 23,611.8, a gain of 3,843 points (up 19.4%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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