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JINDAL SAW 2020-21 Annual Report Analysis
Wed, 31 Mar

JINDAL SAW 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.

JINDAL SAW Income Statement Analysis

  • Operating income during the year fell 8.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.1% in FY21 as against 11.6% in FY20.
  • Depreciation charges increased by 8.8% and finance costs decreased by 20.5% YoY, respectively.
  • Other income grew by 70.3% YoY.
  • Net profit for the year declined by 28.9% YoY.
  • Net profit margins during the year declined from 4.0% in FY20 to 3.1% in FY21.

JINDAL SAW Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 116,270 106,636 -8.3%
Other income Rs m 1,562 2,660 70.3%
Total Revenues Rs m 117,832 109,296 -7.2%
Gross profit Rs m 13,519 11,849 -12.4%
Depreciation Rs m 4,217 4,589 8.8%
Interest Rs m 6,199 4,928 -20.5%
Profit before tax Rs m 4,666 4,993 7.0%
Tax Rs m 53 1,715 3,111.3%
Profit after tax Rs m 4,613 3,277 -28.9%
Gross profit margin % 11.6 11.1
Effective tax rate % 1.1 34.4
Net profit margin % 4.0 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

JINDAL SAW Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 64 billion as compared to Rs 58 billion in FY20, thereby witnessing an increase of 8.8%.
  • Long-term debt down at Rs 23 billion as compared to Rs 24 billion during FY20, a fall of 2.6%.
  • Current assets rose 15% and stood at Rs 67 billion, while fixed assets fell 2% and stood at Rs 91 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 158 billion as against Rs 151 billion during FY20, thereby witnessing a growth of 5%.

JINDAL SAW Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 67,635 69,830 3.2
 
Current Liabilities Rs m 58,407 63,534 8.8
Long-term Debt Rs m 23,607 22,983 -2.6
Total Liabilities Rs m 150,816 158,152 4.9
 
Current assets Rs m 58,179 67,117 15.4
Fixed Assets Rs m 92,637 91,035 -1.7
Total Assets Rs m 150,816 158,152 4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JINDAL SAW Cash Flow Statement Analysis

  • JINDAL SAW's cash flow from operating activities (CFO) during FY21 stood at Rs 16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -8 billion, an improvement of 29% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs 284 million net cash flows seen during FY20.

JINDAL SAW 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 16,646 15,571 -6.5%
Cash Flow from Investing Activities Rs m -4,686 -3,460 -
Cash Flow from Financing Activities Rs m -11,681 -8,312 -
Net Cash Flow Rs m 284 3,791 1,232.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JINDAL SAW

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 14.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 74.2, stands at 7.2 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 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.7 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 363.6 333.5
TTM Earnings per share Rs 14.4 10.2
Diluted earnings per share Rs 14.4 10.2
Price to Cash Flow x 1.7 2.7
TTM P/E ratio x 3.1 7.2
Price / Book Value ratio x 0.3 0.3
Market Cap Rs m 22,815 21,008
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JINDAL SAW

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x 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 2.0x during FY21, from 1.8x 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 4.7% during FY21, from 6.8% 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 10.7% during FY21, from 11.9% 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 5.2% during FY21, from 7.2% 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 1.1
Debtors’ Days Days 586 727
Interest coverage x 1.8 2.0
Debt to equity ratio x 0.3 0.3
Return on assets % 7.2 5.2
Return on equity % 6.8 4.7
Return on capital employed % 11.9 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how JINDAL SAW has performed over the last 5 years, please visit here.

JINDAL SAW Share Price Performance

Over the last one year, JINDAL SAW share price has moved up from Rs 45.8 to Rs 74.2, registering a gain of Rs 28.4 or around 61.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

(To know more, check out historical annual results for JINDAL SAW and quarterly results for JINDAL SAW)

Annual Report FAQs

What is the current share price of JINDAL SAW?

JINDAL SAW currently trades at Rs 432.1 per share. You can check out the latest share price performance of JINDAL SAW here...

What was the revenue of JINDAL SAW in FY21? How does it compare to earlier years?

The revenues of JINDAL SAW stood at Rs 109,296 m in FY21, which was down -7.2% compared to Rs 117,832 m reported in FY20.

JINDAL SAW's revenue has grown from Rs 70,897 m in FY17 to Rs 109,296 m in FY21.

Over the past 5 years, the revenue of JINDAL SAW has grown at a CAGR of 11.4%.

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

The net profit of JINDAL SAW stood at Rs 3,277 m in FY21, which was down -28.9% compared to Rs 4,613 m reported in FY20.

This compares to a net profit of Rs 7,637 m in FY19 and a net loss of Rs -56 m in FY18.

Over the past 5 years, JINDAL SAW net profit has grown at a CAGR of 62.4%.

What does the cash flow statement of JINDAL SAW 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 JINDAL SAW reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 15,571 m as compared to Rs 16,646 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -3,460 m as compared to Rs -4,686 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -8,312 m as compared to Rs -11,681 m in FY20.

Here's the cash flow statement of JINDAL SAW for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations11,6285,65115,67316,64615,571
From Investments-4,255-1,203-5,161-4,686-3,460
From Financial Activity-8,159-4,696-9,769-11,681-8,312
Net Cashflow-809-2527232843,791

What does the Key Ratio analysis of JINDAL SAW 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 JINDAL SAW reveals:

  • Operating profit margins witnessed a fall and stood at 11.1% in FY21 as against 11.6% in FY20.
  • Net profit margins declined from 4.0% in FY20 to 3.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.3 as compared to 0.3 in FY20.

Here's the ratio/financial analysis of JINDAL SAW for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)10.310.114.811.611.1
Net Profit Margin (%)0.7-0.16.34.03.1
Debt to Equity Ratio (x)0.60.60.40.30.3

Read: Latest Annual Report Analysis of JINDAL SAW

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