JAIPRAKASH POWER 2021-22 Annual Report Analysis

Tue, 6 Sep

JAIPRAKASH POWER has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JAIPRAKASH POWER Income Statement Analysis

• Operating income during the year rose 40.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.1% in FY22 as against 38.4% in FY21.
• Depreciation charges increased by 0.3% and finance costs decreased by 3.9% YoY, respectively.
• Other income grew by 84.7% YoY.
• Net profit for the year declined by 52.7% YoY.
• Net profit margins during the year declined from 6.9% in FY21 to 2.3% in FY22.

JAIPRAKASH POWER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	33,017	46,246	40.1%
Other income	Rs m	1,273	2,351	84.7%
Total Revenues	Rs m	34,290	48,596	41.7%
Gross profit	Rs m	12,686	11,128	-12.3%
Depreciation	Rs m	4,800	4,813	0.3%
Interest	Rs m	5,786	5,561	-3.9%
Profit before tax	Rs m	3,373	3,105	-8.0%
Tax	Rs m	1,102	2,030	84.3%
Profit after tax	Rs m	2,272	1,075	-52.7%
Gross profit margin	%	38.4	24.1
Effective tax rate	%	32.7	65.4
Net profit margin	%	6.9	2.3

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

JAIPRAKASH POWER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 22 billion as compared to Rs 16 billion in FY21, thereby witnessing an increase of 37.6%.
• Long-term debt down at Rs 45 billion as compared to Rs 48 billion during FY21, a fall of 6.3%.
• Current assets rose 56% and stood at Rs 25 billion, while fixed assets fell 3% and stood at Rs 147 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 172 billion as against Rs 168 billion during FY21, thereby witnessing a growth of 3%.

JAIPRAKASH POWER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	102,821	103,893	1.0
Current Liabilities	Rs m	15,783	21,714	37.6
Long-term Debt	Rs m	47,515	44,513	-6.3
Total Liabilities	Rs m	167,653	172,261	2.7
Current assets	Rs m	16,100	25,042	55.5
Fixed Assets	Rs m	151,553	147,219	-2.9
Total Assets	Rs m	167,653	172,261	2.7

JAIPRAKASH POWER Cash Flow Statement Analysis

• JAIPRAKASH POWER's cash flow from operating activities (CFO) during FY22 stood at Rs 8 billion, an improvement of 4.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -7 billion, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 218 million from the Rs -429 million net cash flows seen during FY21.

JAIPRAKASH POWER Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	8,129	8,451	4.0%
Cash Flow from Investing Activities	Rs m	2,799	-1,126	-
Cash Flow from Financing Activities	Rs m	-11,357	-7,108	-
Net Cash Flow	Rs m	-429	218	-

Current Valuations for JAIPRAKASH POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9.1, stands at 18.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	4.8	6.7
TTM Earnings per share	Rs	0.3	0.2
Diluted earnings per share	Rs	0.3	0.2
Price to Cash Flow	x	3.2	8.2
TTM P/E ratio	x	8.2	18.0
Price / Book Value ratio	x	0.2	0.5
Market Cap	Rs m	16,791	48,077
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 1.2x during FY22, from 1.0x during FY21. 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 1.6x during FY22, from 1.6x during FY21. 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 1.0% during FY22, from 2.2% during FY22. 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 5.8% during FY22, from 6.1% during FY21. 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 3.9% during FY22, from 4.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.0	1.2
Debtors’ Days	Days	874	734
Interest coverage	x	1.6	1.6
Debt to equity ratio	x	0.5	0.4
Return on assets	%	4.8	3.9
Return on equity	%	2.2	1.0
Return on capital employed	%	6.1	5.8

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 4.0 to Rs 9.1, registering a gain of Rs 5.1 or around 127.6%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 5,214.7 (up 1.4%). Over the last one year it has moved up from 2,982.8 to 5,214.7, a gain of 2,232 points (up 74.8%).

Overall, the S&P BSE SENSEX is up 2.6% 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