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JAIPRAKASH POWER 2017-18 Annual Report Analysis
Sat, 31 Mar

JAIPRAKASH POWER 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.

JAIPRAKASH POWER Income Statement Analysis

  • Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 29.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.8% in FY18 as against 36.8% in FY17.
  • Depreciation charges increased by 6.2% and finance costs decreased by 5.9% YoY, respectively.
  • Other income grew by 306.8% YoY.
  • Net profit for the year grew by 30.6% YoY.
  • Net profit margins during the year declined from 27.8% in FY17 to 34.7% in FY18.

JAIPRAKASH POWER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 46,573 48,769 4.7%
Other income Rs m 871 3,542 306.8%
Total Revenues Rs m 47,444 52,311 10.3%
Gross profit Rs m 17,132 12,116 -29.3%
Depreciation Rs m 7,712 8,189 6.2%
Interest Rs m 27,766 26,138 -5.9%
Profit before tax Rs m -17,475 -18,668 6.8%
Tax Rs m -4,528 -1,765 -61.0%
Profit after tax Rs m -12,947 -16,903 30.6%
Gross profit margin % 36.8 24.8
Effective tax rate % 25.9 9.5
Net profit margin % -27.8 -34.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

JAIPRAKASH POWER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 94 billion as compared to Rs 67 billion in FY17, thereby witnessing an increase of 40.2%.
  • Long-term debt down at Rs 184 billion as compared to Rs 201 billion during FY17, a fall of 8.3%.
  • Current assets rose 1% and stood at Rs 20 billion, while fixed assets fell 3% and stood at Rs 342 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 363 billion as against Rs 373 billion during FY17, thereby witnessing a fall of 3%.

JAIPRAKASH POWER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 93,870 77,793 -17.1
 
Current Liabilities Rs m 66,795 93,632 40.2
Long-term Debt Rs m 201,031 184,386 -8.3
Total Liabilities Rs m 372,932 362,685 -2.7
 
Current assets Rs m 20,052 20,291 1.2
Fixed Assets Rs m 352,879 342,394 -3.0
Total Assets Rs m 372,932 362,685 -2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JAIPRAKASH POWER Cash Flow Statement Analysis

  • JAIPRAKASH POWER's cash flow from operating activities (CFO) during FY18 stood at Rs 18 billion, an improvement of 26.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -15 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 90 million from the Rs -607 million net cash flows seen during FY17.

JAIPRAKASH POWER 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 14,128 17,824 26.2%
Cash Flow from Investing Activities Rs m -8,020 -2,303 -
Cash Flow from Financing Activities Rs m -6,715 -15,432 -
Net Cash Flow Rs m -607 90 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JAIPRAKASH POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.8, an decline from the EPS of Rs -2.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 4.8, stands at -6.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at -4.9 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 7.8 8.1
TTM Earnings per share Rs -2.2 -2.8
Diluted earnings per share Rs -1.9 -2.5
Price to Cash Flow x -6.6 -4.9
TTM P/E ratio x -4.5 -6.2
Price / Book Value ratio x 0.3 0.5
Market Cap Rs m 31,659 42,272
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JAIPRAKASH POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY18, from 0.3x 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 deteriorated and stood at 0.3x during FY18, from 0.4x 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 declined and down at -21.7% during FY18, from -13.8% 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 declined and down at 2.8% during FY18, from 3.5% 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 declined and down at 2.5% during FY18, from 4.0% 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 0.3 0.2
Debtors’ Days Days 805 734
Interest coverage x 0.4 0.3
Debt to equity ratio x 2.1 2.4
Return on assets % 4.0 2.5
Return on equity % -13.8 -21.7
Return on capital employed % 3.5 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how JAIPRAKASH POWER has performed over the last 5 years, please visit here.

JAIPRAKASH POWER Share Price Performance

Over the last one year, JAIPRAKASH POWER share price has moved down from Rs 5.0 to Rs 4.8, registering a loss of Rs 0.2 or around 4.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,125.8 (down 1.1%). Over the last one year it has moved down from 2,274.4 to 2,125.8, a loss of 149 points (down 6.5%).

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

(To know more, check out historical annual results for JAIPRAKASH POWER and quarterly results for JAIPRAKASH POWER)

Annual Report FAQs

What is the current share price of JAIPRAKASH POWER?

JAIPRAKASH POWER currently trades at Rs 15.3 per share. You can check out the latest share price performance of JAIPRAKASH POWER here...

What was the revenue of JAIPRAKASH POWER in FY18? How does it compare to earlier years?

The revenues of JAIPRAKASH POWER stood at Rs 52,311 m in FY18, which was up 10.3% compared to Rs 47,444 m reported in FY17.

JAIPRAKASH POWER's revenue has grown from Rs 41,910 m in FY16 to Rs 52,311 m in FY18.

Over the past 3 years, the revenue of JAIPRAKASH POWER has grown at a CAGR of 11.7%.

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

The net loss of JAIPRAKASH POWER stood at Rs -16,903 m in FY18, which was up 30.6% compared to Rs -12,947 m reported in FY17.

This compares to a net loss of Rs -2,435 m in FY16.

Over the past 3 years, JAIPRAKASH POWER net profit has grown at a CAGR of 163.5%.

What does the cash flow statement of JAIPRAKASH POWER 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 JAIPRAKASH POWER reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 17,824 m as compared to Rs 14,128 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -2,303 m as compared to Rs -8,020 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -15,432 m as compared to Rs -6,715 m in FY17.

Here's the cash flow statement of JAIPRAKASH POWER for the past 3 years.

(Rs m)FY16FY17FY18
From Operations28,16214,12817,824
From Investments64,156-8,020-2,303
From Financial Activity-94,937-6,715-15,432
Net Cashflow-2,619-60790

What does the Key Ratio analysis of JAIPRAKASH POWER 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 JAIPRAKASH POWER reveals:

  • Operating profit margins witnessed a fall and stood at 24.8% in FY18 as against 36.8% in FY17.
  • Net profit margins declined from 27.8% in FY17 to 34.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 2.4 as compared to 2.1 in FY17.

Here's the ratio/financial analysis of JAIPRAKASH POWER for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)61.636.824.8
Net Profit Margin (%)-6.0-27.8-34.7
Debt to Equity Ratio (x)2.82.12.4

Read: Latest Annual Report Analysis of JAIPRAKASH POWER

 

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