JSW HOLDINGS 2022-23 Annual Report Analysis

Mon, 17 Jul

JSW HOLDINGS 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.

JSW HOLDINGS Income Statement Analysis

• Operating income during the year rose 118.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 122.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 98.5% in FY23 as against 96.9% in FY22.
• Depreciation charges decreased by 66.7% increased by 0.0% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 122.6% YoY.
• Net profit margins during the year grew from 72.3% in FY22 to 73.7% in FY23.

JSW HOLDINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,861	4,068	118.5%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	1,861	4,068	118.5%
Gross profit	Rs m	1,804	4,009	122.2%
Depreciation	Rs m	0	0	-66.7%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	1,804	4,009	122.2%
Tax	Rs m	458	1,013	121.2%
Profit after tax	Rs m	1,346	2,996	122.6%
Gross profit margin	%	96.9	98.5
Effective tax rate	%	25.4	25.3
Net profit margin	%	72.3	73.7

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JSW HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 million as compared to Rs 8 million in FY22, thereby witnessing an increase of 19.0%.
• Current assets rose 47% and stood at Rs 9 billion, while fixed assets fell 5% and stood at Rs 211 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 220 billion as against Rs 228 billion during FY22, thereby witnessing a fall of 3%.

JSW HOLDINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	199,515	194,094	-2.7
Current Liabilities	Rs m	8	9	19.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	227,563	220,390	-3.2
Current assets	Rs m	6,345	9,348	47.3
Fixed Assets	Rs m	221,218	211,042	-4.6
Total Assets	Rs m	227,563	220,390	-3.2

JSW HOLDINGS Cash Flow Statement Analysis

• JSW HOLDINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 129.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 127.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 million from the Rs -8 million net cash flows seen during FY22.

JSW HOLDINGS 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	1,302	2,984	129.1%
Cash Flow from Investing Activities	Rs m	-1,310	-2,976	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	-8	8	-

Current Valuations for JSW HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 269.9, an improvement from the EPS of Rs 121.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,532.4, stands at 16.8 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 12.4 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	167.8	366.5
TTM Earnings per share	Rs	121.4	269.9
Diluted earnings per share	Rs	121.3	269.9
Price to Cash Flow	x	33.8	14.9
TTM P/E ratio	x	33.8	16.8
Price / Book Value ratio	x	0.3	0.2
Market Cap	Rs m	53,529	44,700
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JSW HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1,023.9x during FY23, from 827.3x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 1.5% during FY23, from 0.7% 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 improved and stood at 2.1% during FY23, from 0.9% 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 improved and stood at 1.4% during FY23, from 0.6% 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	827.3	1,023.9
Debtors’ Days	Days	64	21
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.6	1.4
Return on equity	%	0.7	1.5
Return on capital employed	%	0.9	2.1

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 3,340.0 to Rs 4,532.4, registering a gain of Rs 1,192.4 or around 35.7%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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