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JSW HOLDINGS 2020-21 Annual Report Analysis
Wed, 31 Mar

JSW HOLDINGS 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 HOLDINGS Income Statement Analysis

  • Operating income during the year fell 23.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 24.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 94.6% in FY21 as against 95.4% in FY20.
  • Depreciation charges increased by 4.0% increased by 0.0% YoY, respectively.
  • Other income grew by 0.0% YoY.
  • Net profit for the year declined by 36.9% YoY.
  • Net profit margins during the year declined from 86.0% in FY20 to 70.8% in FY21.

JSW HOLDINGS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,210 928 -23.3%
Other income Rs m 0 0 0.0%
Total Revenues Rs m 1,210 928 -23.3%
Gross profit Rs m 1,155 878 -24.0%
Depreciation Rs m 0 0 4.0%
Interest Rs m 0 1 0.0%
Profit before tax Rs m 1,155 877 -24.0%
Tax Rs m 114 220 93.1%
Profit after tax Rs m 1,041 657 -36.9%
Gross profit margin % 95.4 94.6
Effective tax rate % 9.9 25.1
Net profit margin % 86.0 70.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

JSW HOLDINGS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 5 million as compared to Rs 4 million in FY20, thereby witnessing an increase of 27.8%.
  • Current assets rose 15% and stood at Rs 5 billion, while fixed assets rose 86% and stood at Rs 135 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 140 billion as against Rs 77 billion during FY20, thereby witnessing a growth of 82%.

JSW HOLDINGS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 71,101 125,997 77.2
 
Current Liabilities Rs m 4 5 27.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 77,119 140,451 82.1
 
Current assets Rs m 4,302 4,965 15.4
Fixed Assets Rs m 72,817 135,485 86.1
Total Assets Rs m 77,119 140,451 82.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JSW HOLDINGS Cash Flow Statement Analysis

  • JSW HOLDINGS's cash flow from operating activities (CFO) during FY21 stood at Rs 673 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -721 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 0 million, an improvement of 0% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -48 million from the Rs -41 million net cash flows seen during FY20.

JSW HOLDINGS 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 1,035 673 -35.0%
Cash Flow from Investing Activities Rs m -1,076 -721 -
Cash Flow from Financing Activities Rs m 0 0 0.0%
Net Cash Flow Rs m -41 -48 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JSW HOLDINGS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.4, an decline from the EPS of Rs 94.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,832.8, stands at 64.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 45.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 47.7 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 109.3 83.8
TTM Earnings per share Rs 94.0 59.4
Diluted earnings per share Rs 93.8 59.2
Price to Cash Flow x 15.3 47.7
TTM P/E ratio x 15.3 64.7
Price / Book Value ratio x 0.3 0.2
Market Cap Rs m 24,339 31,379
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JSW HOLDINGS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 922.9x during FY21, from 1,021.9x 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 1,290.8x during FY21, from 0.0x 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 0.5% during FY21, from 1.5% 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 0.7% during FY21, from 1.6% 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 0.5% during FY21, from 1.3% 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 1,021.9 922.9
Debtors’ Days Days 34 103
Interest coverage x 0.0 1,290.8
Debt to equity ratio x 0.0 0.0
Return on assets % 1.3 0.5
Return on equity % 1.5 0.5
Return on capital employed % 1.6 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

JSW HOLDINGS Share Price Performance

Over the last one year, JSW HOLDINGS share price has moved up from Rs 1,438.0 to Rs 3,832.8, registering a gain of Rs 2,394.8 or around 166.5%.

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

(To know more, check out historical annual results for JSW HOLDINGS and quarterly results for JSW HOLDINGS)

Annual Report FAQs

What is the current share price of JSW HOLDINGS?

JSW HOLDINGS currently trades at Rs 7,199.6 per share. You can check out the latest share price performance of JSW HOLDINGS here...

What was the revenue of JSW HOLDINGS in FY21? How does it compare to earlier years?

The revenues of JSW HOLDINGS stood at Rs 928 m in FY21, which was down -23.3% compared to Rs 1,210 m reported in FY20.

JSW HOLDINGS' revenue has grown from Rs 634 m in FY17 to Rs 928 m in FY21.

Over the past 5 years, the revenue of JSW HOLDINGS has grown at a CAGR of 10.0%.

What was the net profit of JSW HOLDINGS in FY21? How does it compare to earlier years?

The net profit of JSW HOLDINGS stood at Rs 657 m in FY21, which was down -36.9% compared to Rs 1,041 m reported in FY20.

This compares to a net profit of Rs 878 m in FY19 and a net profit of Rs 680 m in FY18.

Over the past 5 years, JSW HOLDINGS net profit has grown at a CAGR of 8.5%.

What does the cash flow statement of JSW HOLDINGS 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 JSW HOLDINGS reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 673 m as compared to Rs 1,035 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -721 m as compared to Rs -1,076 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 0 m as compared to Rs 0 m in FY20.

Here's the cash flow statement of JSW HOLDINGS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations3166628891,035673
From Investments-429-582-869-1,076-721
From Financial Activity00000
Net Cashflow-1137920-41-48

What does the Key Ratio analysis of JSW HOLDINGS 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 JSW HOLDINGS reveals:

  • Operating profit margins witnessed a fall and stood at 94.6% in FY21 as against 95.4% in FY20.
  • Net profit margins declined from 86.0% in FY20 to 70.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of JSW HOLDINGS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)93.894.595.095.494.6
Net Profit Margin (%)74.876.781.886.070.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of JSW HOLDINGS

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