JAIPRAKASH POWER 2020-21 Annual Report Analysis

Wed, 31 Mar

JAIPRAKASH POWER 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.

JAIPRAKASH POWER Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 513.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.4% in FY21 as against 9.3% in FY20.
• Depreciation charges increased by 0.2% and finance costs decreased by 11.3% YoY, respectively.
• Other income grew by 102.8% YoY.
• Net profit for the year declined by 110.3% YoY.
• Net profit margins during the year grew from 67.1% in FY20 to 6.9% in FY21.

JAIPRAKASH POWER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	32,837	33,017	0.5%
Other income	Rs m	628	1,273	102.8%
Total Revenues	Rs m	33,464	34,290	2.5%
Gross profit	Rs m	-3,066	12,686	-513.7%
Depreciation	Rs m	4,791	4,800	0.2%
Interest	Rs m	6,522	5,786	-11.3%
Profit before tax	Rs m	-13,751	3,373	-124.5%
Tax	Rs m	8,294	1,102	-86.7%
Profit after tax	Rs m	-22,045	2,272	-110.3%
Gross profit margin	%	-9.3	38.4
Effective tax rate	%	-60.3	32.7
Net profit margin	%	-67.1	6.9

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JAIPRAKASH POWER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 16 billion as compared to Rs 21 billion in FY20, thereby witnessing an decrease of -25.5%.
• Long-term debt down at Rs 48 billion as compared to Rs 52 billion during FY20, a fall of 8.3%.
• Current assets rose 15% and stood at Rs 16 billion, while fixed assets fell 6% and stood at Rs 152 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 168 billion as against Rs 175 billion during FY20, thereby witnessing a fall of 4%.

JAIPRAKASH POWER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	99,987	102,821	2.8
Current Liabilities	Rs m	21,178	15,783	-25.5
Long-term Debt	Rs m	51,841	47,515	-8.3
Total Liabilities	Rs m	175,406	167,653	-4.4
Current assets	Rs m	13,962	16,100	15.3
Fixed Assets	Rs m	161,444	151,553	-6.1
Total Assets	Rs m	175,406	167,653	-4.4

JAIPRAKASH POWER Cash Flow Statement Analysis

• JAIPRAKASH POWER's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -429 million from the Rs 608 million net cash flows seen during FY20.

JAIPRAKASH POWER 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	10,279	8,129	-20.9%
Cash Flow from Investing Activities	Rs m	-1,298	2,799	-
Cash Flow from Financing Activities	Rs m	-8,221	-11,357	-
Net Cash Flow	Rs m	608	-429	-

Current Valuations for JAIPRAKASH POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an improvement from the EPS of Rs -3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.3, stands at 8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 2.4 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	4.8	4.8
TTM Earnings per share	Rs	-3.2	0.3
Diluted earnings per share	Rs	-3.2	0.3
Price to Cash Flow	x	-0.3	2.4
TTM P/E ratio	x	-0.2	8.2
Price / Book Value ratio	x	0.1	0.2
Market Cap	Rs m	13,647	16,791
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JAIPRAKASH POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.7x 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 1.6x during FY21, from -1.1x 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 2.2% during FY21, from -22.0% 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 6.1% during FY21, from -4.8% 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 4.8% during FY21, from -8.9% 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	0.7	1.0
Debtors’ Days	Days	446	874
Interest coverage	x	-1.1	1.6
Debt to equity ratio	x	0.5	0.5
Return on assets	%	-8.9	4.8
Return on equity	%	-22.0	2.2
Return on capital employed	%	-4.8	6.1

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 up from Rs 0.7 to Rs 3.3, registering a gain of Rs 2.6 or around 404.6%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

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

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

Read: Latest Annual Report Analysis of JAIPRAKASH POWER