JSW ISPAT SP PROD 2021-22 Annual Report Analysis

Fri, 1 Jul

JSW ISPAT SP PROD has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

JSW ISPAT SP PROD Income Statement Analysis

• Operating income during the year rose 44.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY22 as against 10.4% in FY21.
• Depreciation charges decreased by 2.3% and finance costs decreased by 1.9% YoY, respectively.
• Other income declined by 86.2% YoY.
• Net profit for the year declined by 99.3% YoY.
• Net profit margins during the year declined from 5.0% in FY21 to 0.0% in FY22.

JSW ISPAT SP PROD Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	41,877	60,607	44.7%
Other income	Rs m	2,763	382	-86.2%
Total Revenues	Rs m	44,641	60,988	36.6%
Gross profit	Rs m	4,375	4,571	4.5%
Depreciation	Rs m	2,285	2,232	-2.3%
Interest	Rs m	2,759	2,706	-1.9%
Profit before tax	Rs m	2,095	15	-99.3%
Tax	Rs m	0	0	0.0%
Profit after tax	Rs m	2,095	15	-99.3%
Gross profit margin	%	10.4	7.5
Effective tax rate	%	0.0	0.0
Net profit margin	%	5.0	0.0

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JSW ISPAT SP PROD Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 15 billion as compared to Rs 13 billion in FY21, thereby witnessing an increase of 16.2%.
• Long-term debt down at Rs 22 billion as compared to Rs 23 billion during FY21, a fall of 1.5%.
• Current assets rose 16% and stood at Rs 18 billion, while fixed assets fell 2% and stood at Rs 34 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 52 billion as against Rs 51 billion during FY21, thereby witnessing a growth of 4%.

JSW ISPAT SP PROD Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,931	13,930	0.0
Current Liabilities	Rs m	12,646	14,689	16.2
Long-term Debt	Rs m	22,733	22,399	-1.5
Total Liabilities	Rs m	50,542	52,418	3.7
Current assets	Rs m	15,604	18,043	15.6
Fixed Assets	Rs m	34,939	34,375	-1.6
Total Assets	Rs m	50,542	52,418	3.7

JSW ISPAT SP PROD Cash Flow Statement Analysis

• JSW ISPAT SP PROD's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 41.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 461 million from the Rs -225 million net cash flows seen during FY21.

JSW ISPAT SP PROD Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	4,064	2,763	-32.0%
Cash Flow from Investing Activities	Rs m	-810	-1,143	-
Cash Flow from Financing Activities	Rs m	-3,478	-1,160	-
Net Cash Flow	Rs m	-225	461	-

Current Valuations for JSW ISPAT SP PROD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23.6, stands at 742.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	89.2	129.1
TTM Earnings per share	Rs	4.5	0.0
Diluted earnings per share	Rs	4.5	0.0
Price to Cash Flow	x	2.8	9.8
TTM P/E ratio	x	5.9	742.1
Price / Book Value ratio	x	0.8	1.6
Market Cap	Rs m	10,868	22,034
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JSW ISPAT SP PROD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.2x during FY21. 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 1.0x during FY22, from 1.8x during FY21. 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 0.1% during FY22, from 15.0% during FY22. 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 7.5% during FY22, from 13.2% during FY21. 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 5.2% during FY22, from 9.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	2	2
Interest coverage	x	1.8	1.0
Debt to equity ratio	x	1.6	1.6
Return on assets	%	9.6	5.2
Return on equity	%	15.0	0.1
Return on capital employed	%	13.2	7.5

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

JSW ISPAT SP PROD Share Price Performance

Over the last one year, JSW ISPAT SP PROD share price has moved down from Rs 39.2 to Rs 0.0, registering a loss of Rs 39.2 or around 100.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 15,832.3 (up 1.8%). Over the last one year it has moved down from 18,651.5 to 15,832.3, a loss of 2,819 points (down 15.1%).

Overall, the NIFTY 50 is down 0.6% over the year.

(To know more, check out historical annual results for JSW ISPAT SP PROD and quarterly results for JSW ISPAT SP PROD)