JSW HOLDINGS 2020-21 Annual Report Analysis

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JSW HOLDINGS 2020-21 Annual Report Analysis
Mon, 8 Nov

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



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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 4,648.0, stands at 39.6 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 33.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 78.5 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 49.4 78.5
TTM P/E ratio x 39.5 39.6
Price / Book Value ratio x 0.3 0.2
Market Cap Rs m 51,445 51,591
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 2,551.8 to Rs 4,648.0, registering a gain of Rs 2,096.3 or around 82.1%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

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

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