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JSW ENERGY 2020-21 Annual Report Analysis

Wed, 31 Mar

JSW ENERGY 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.

JSW ENERGY Income Statement Analysis

• Operating income during the year fell 16.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.0% in FY21 as against 36.5% in FY20.
• Depreciation charges decreased by 0.1% and finance costs decreased by 14.8% YoY, respectively.
• Other income declined by 17.3% YoY.
• Net profit for the year declined by 23.5% YoY.
• Net profit margins during the year declined from 12.7% in FY20 to 11.6% in FY21.

JSW ENERGY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	82,727	69,222	-16.3%
Other income	Rs m	2,870	2,375	-17.3%
Total Revenues	Rs m	85,597	71,597	-16.4%
Gross profit	Rs m	30,183	29,066	-3.7%
Depreciation	Rs m	11,681	11,669	-0.1%
Interest	Rs m	10,511	8,957	-14.8%
Profit before tax	Rs m	10,862	10,814	-0.4%
Tax	Rs m	330	2,759	735.1%
Profit after tax	Rs m	10,531	8,055	-23.5%
Gross profit margin	%	36.5	42.0
Effective tax rate	%	3.0	25.5
Net profit margin	%	12.7	11.6

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JSW ENERGY Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 58 billion as compared to Rs 64 billion in FY20, thereby witnessing an decrease of -9.3%.
• Long-term debt down at Rs 70 billion as compared to Rs 83 billion during FY20, a fall of 15.8%.
• Current assets rose 2% and stood at Rs 67 billion, while fixed assets rose 7% and stood at Rs 239 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 306 billion as against Rs 289 billion during FY20, thereby witnessing a growth of 6%.

JSW ENERGY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	116,226	144,820	24.6
Current Liabilities	Rs m	63,515	57,628	-9.3
Long-term Debt	Rs m	82,807	69,724	-15.8
Total Liabilities	Rs m	288,843	305,935	5.9
Current assets	Rs m	65,241	66,576	2.0
Fixed Assets	Rs m	223,601	239,360	7.0
Total Assets	Rs m	288,843	305,935	5.9

JSW ENERGY Cash Flow Statement Analysis

• JSW ENERGY's cash flow from operating activities (CFO) during FY21 stood at Rs 37 billion, an improvement of 77.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -25 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 4 billion net cash flows seen during FY20.

JSW ENERGY 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	20,855	36,999	77.4%
Cash Flow from Investing Activities	Rs m	3,008	-10,326	-
Cash Flow from Financing Activities	Rs m	-19,646	-25,148	-
Net Cash Flow	Rs m	4,213	1,553	-63.1%

Current Valuations for JSW ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an decline from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.0, stands at 17.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	50.4	42.1
TTM Earnings per share	Rs	6.4	4.9
Diluted earnings per share	Rs	6.4	4.9
Price to Cash Flow	x	3.2	5.4
TTM P/E ratio	x	6.7	17.9
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	94,204	105,766
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for JSW ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.0x 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 2.2x during FY21, from 2.0x 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 declined and down at 5.6% during FY21, from 9.1% 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 declined and down at 9.2% during FY21, from 10.7% 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 declined and down at 5.6% during FY21, from 7.3% 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	1.0	1.2
Debtors’ Days	Days	7	5
Interest coverage	x	2.0	2.2
Debt to equity ratio	x	0.7	0.5
Return on assets	%	7.3	5.6
Return on equity	%	9.1	5.6
Return on capital employed	%	10.7	9.2

To see how JSW ENERGY has performed over the last 5 years, please visit here.

JSW ENERGY Share Price Performance

Over the last one year, JSW ENERGY share price has moved up from Rs 42.6 to Rs 88.0, registering a gain of Rs 45.4 or around 106.5%.

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 JSW ENERGY and quarterly results for JSW ENERGY)

Read: Latest Annual Report Analysis of JSW ENERGY