JINDAL SAW 2022-23 Annual Report Analysis

Tue, 30 May

JINDAL SAW 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.

JINDAL SAW Income Statement Analysis

• Operating income during the year rose 34.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY23 as against 10.2% in FY22.
• Depreciation charges decreased by 0.5% and finance costs increased by 38.6% YoY, respectively.
• Other income grew by 19.9% YoY.
• Net profit for the year grew by 17.8% YoY.
• Net profit margins during the year declined from 2.8% in FY22 to 2.5% in FY23.

JINDAL SAW Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	132,984	178,678	34.4%
Other income	Rs m	1,992	2,388	19.9%
Total Revenues	Rs m	134,976	181,066	34.1%
Gross profit	Rs m	13,554	15,796	16.5%
Depreciation	Rs m	4,730	4,708	-0.5%
Interest	Rs m	4,601	6,376	38.6%
Profit before tax	Rs m	6,215	7,100	14.2%
Tax	Rs m	2,456	2,672	8.8%
Profit after tax	Rs m	3,759	4,428	17.8%
Gross profit margin	%	10.2	8.8
Effective tax rate	%	39.5	37.6
Net profit margin	%	2.8	2.5

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JINDAL SAW Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 80 billion as compared to Rs 71 billion in FY22, thereby witnessing an increase of 12.7%.
• Long-term debt down at Rs 17 billion as compared to Rs 18 billion during FY22, a fall of 5.3%.
• Current assets rose 23% and stood at Rs 89 billion, while fixed assets fell 2% and stood at Rs 90 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 179 billion as against Rs 164 billion during FY22, thereby witnessing a growth of 9%.

JINDAL SAW Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	73,642	79,228	7.6
Current Liabilities	Rs m	71,388	80,431	12.7
Long-term Debt	Rs m	18,326	17,348	-5.3
Total Liabilities	Rs m	164,432	178,611	8.6
Current assets	Rs m	72,671	89,056	22.5
Fixed Assets	Rs m	91,761	89,555	-2.4
Total Assets	Rs m	164,432	178,611	8.6

JINDAL SAW Cash Flow Statement Analysis

• JINDAL SAW's cash flow from operating activities (CFO) during FY23 stood at Rs 16 billion, an improvement of 2,101.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -702 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -20 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -4 billion from the Rs -553 million net cash flows seen during FY22.

JINDAL SAW 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	735	16,174	2,101.4%
Cash Flow from Investing Activities	Rs m	-1,913	-702	-
Cash Flow from Financing Activities	Rs m	610	-19,685	-
Net Cash Flow	Rs m	-553	-4,191	-

Current Valuations for JINDAL SAW

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.8, an improvement from the EPS of Rs 11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 203.0, stands at 14.6 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	415.9	558.8
TTM Earnings per share	Rs	11.8	13.8
Diluted earnings per share	Rs	11.8	13.8
Price to Cash Flow	x	3.4	4.5
TTM P/E ratio	x	7.7	14.6
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	34,902	40,729
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for JINDAL SAW

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x during FY22. 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 2.1x during FY23, from 2.4x during FY22. 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 improved and stood at 5.6% during FY23, from 5.1% 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 14.0% during FY23, from 11.8% 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 6.0% during FY23, from 5.1% 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	1.0	1.1
Debtors’ Days	Days	496	728
Interest coverage	x	2.4	2.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	5.1	6.0
Return on equity	%	5.1	5.6
Return on capital employed	%	11.8	14.0

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 85.5 to Rs 203.0, registering a gain of Rs 117.5 or around 137.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,918.6 (down 0.6%). Over the last one year it has moved up from 17,784.5 to 19,918.6, a gain of 2,134 points (up 12.0%).

Overall, the S&P BSE SENSEX is up 16.0% over the year.

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