JAIPRAKASH POWER 2022-23 Annual Report Analysis

Wed, 25 Oct

JAIPRAKASH POWER 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.

JAIPRAKASH POWER Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY23 as against 24.1% in FY22.
• Depreciation charges decreased by 3.5% and finance costs increased by 0.7% YoY, respectively.
• Other income declined by 42.4% YoY.
• Net profit for the year declined by 48.4% YoY.
• Net profit margins during the year declined from 2.3% in FY22 to 1.0% in FY23.

JAIPRAKASH POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	46,246	57,867	25.1%
Other income	Rs m	2,351	1,355	-42.4%
Total Revenues	Rs m	48,596	59,222	21.9%
Gross profit	Rs m	11,128	11,139	0.1%
Depreciation	Rs m	4,813	4,642	-3.5%
Interest	Rs m	5,561	5,597	0.7%
Profit before tax	Rs m	3,105	2,254	-27.4%
Tax	Rs m	2,030	1,700	-16.2%
Profit after tax	Rs m	1,075	554	-48.4%
Gross profit margin	%	24.1	19.2
Effective tax rate	%	65.4	75.4
Net profit margin	%	2.3	1.0

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JAIPRAKASH POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 26 billion as compared to Rs 22 billion in FY22, thereby witnessing an increase of 19.0%.
• Long-term debt down at Rs 40 billion as compared to Rs 45 billion during FY22, a fall of 10.3%.
• Current assets rose 23% and stood at Rs 31 billion, while fixed assets fell 3% and stood at Rs 142 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 173 billion as against Rs 172 billion during FY22, thereby witnessing a growth of 0%.

JAIPRAKASH POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	103,893	104,455	0.5
Current Liabilities	Rs m	21,714	25,838	19.0
Long-term Debt	Rs m	44,513	39,917	-10.3
Total Liabilities	Rs m	172,261	172,850	0.3
Current assets	Rs m	25,042	30,682	22.5
Fixed Assets	Rs m	147,219	142,168	-3.4
Total Assets	Rs m	172,261	172,850	0.3

JAIPRAKASH POWER Cash Flow Statement Analysis

• JAIPRAKASH POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -33 million from the Rs 218 million net cash flows seen during FY22.

JAIPRAKASH POWER 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	8,451	7,674	-9.2%
Cash Flow from Investing Activities	Rs m	-1,126	1,089	-
Cash Flow from Financing Activities	Rs m	-7,108	-8,797	-
Net Cash Flow	Rs m	218	-33	-

Current Valuations for JAIPRAKASH POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.8, stands at 1,184.3 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 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 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	6.7	8.4
TTM Earnings per share	Rs	0.2	0.1
Diluted earnings per share	Rs	0.2	0.1
Price to Cash Flow	x	7.9	9.6
TTM P/E ratio	x	43.3	1,184.3
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	48,077	50,065
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 FY23, from 1.2x 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 1.4x during FY23, from 1.6x 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 0.5% during FY23, from 1.0% 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 5.4% during FY23, from 5.8% 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 3.6% during FY23, from 3.9% 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	1.2	1.2
Debtors’ Days	Days	734	736
Interest coverage	x	1.6	1.4
Debt to equity ratio	x	0.4	0.4
Return on assets	%	3.9	3.6
Return on equity	%	1.0	0.5
Return on capital employed	%	5.8	5.4

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 7.6 to Rs 8.8, registering a gain of Rs 1.3 or around 16.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,304.9 (down 1.1%). Over the last one year it has moved down from 4,734.7 to 4,304.9, a loss of 430 points (down 9.1%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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