JAIPRAKASH POWER 2017-18 Annual Report Analysis
Wed, 19 Dec

JAIPRAKASH POWER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JAIPRAKASH POWER Income Statement Analysis

  • Operating income during the year rose 5.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 9.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 31.3% in FY18 as against 36.5% in FY17.
  • Depreciation charges increased by 6.2% and finance costs decreased by 4.9% YoY, respectively.
  • Other income grew by 306.8% YoY.
  • Net profit for the year grew by 30.6% YoY.
  • Net profit margins during the year declined from 27.5% in FY17 to 32.3% in FY18.

JAIPRAKASH POWER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 46,212 48,769 5.5%
Other income Rs m 871 3,542 306.8%
Total Revenues Rs m 47,083 52,311 11.1%
Gross profit Rs m 16,863 15,249 -9.6%
Depreciation Rs m 7,712 8,189 6.2%
Interest Rs m 27,496 26,138 -4.9%
Profit before tax Rs m -17,475 -15,536 -11.1%
Tax Rs m -4,528 -1,765 -61.0%
Profit after tax Rs m -12,947 -16,903 30.6%
Gross profit margin % 36.5 31.3
Effective tax rate % 25.9 11.4
Net profit margin % -27.5 -32.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JAIPRAKASH POWER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 94 billion as compared to Rs 67 billion in FY17, thereby witnessing an increase of 40.2%.
  • Long-term debt down at Rs 184 billion as compared to Rs 201 billion during FY17, a fall of 8.3%.
  • Current assets rose 1% and stood at Rs 20 billion, while fixed assets fell 2% and stood at Rs 317 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 371 billion as against Rs 378 billion during FY17, thereby witnessing a fall of 2%.

JAIPRAKASH POWER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 93,870 77,793 -17.1
 
Current Liabilities Rs m 66,795 93,632 40.2
Long-term Debt Rs m 201,031 184,386 -8.3
Total Liabilities Rs m 378,358 371,023 -1.9
 
Current assets Rs m 20,052 20,291 1.2
Fixed Assets Rs m 322,847 316,550 -2.0
Total Assets Rs m 378,358 371,023 -1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



JAIPRAKASH POWER Cash Flow Statement Analysis

  • JAIPRAKASH POWER's cash flow from operating activities (CFO) during FY18 stood at Rs 18 billion, an improvement of 26.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -15 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 90 million from the Rs -607 million net cash flows seen during FY17.

JAIPRAKASH POWER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 14,128 17,824 26.2%
Cash Flow from Investing Activities Rs m -8,020 -2,303 -
Cash Flow from Financing Activities Rs m -6,715 -15,432 -
Net Cash Flow Rs m -607 90 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for JAIPRAKASH POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.8, an decline from the EPS of Rs -2.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2.1, stands at -1.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at -0.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 7.7 8.1
TTM Earnings per share Rs -2.2 -2.8
Diluted earnings per share Rs -4.4 -5.8
Price to Cash Flow x -2.4 -0.7
TTM P/E ratio x -3.2 -1.6
Price / Book Value ratio x 0.3 0.5
Market Cap Rs m 12,412 6,082
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for JAIPRAKASH POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.2x during FY18, from 0.3x during FY17. 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 0.4x during FY18, from 0.4x during FY17. 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 -21.7% during FY18, from -13.8% during FY18. 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 2.8% during FY18, from 3.4% during FY17. 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 2.5% during FY18, from 3.8% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.3 0.2
Debtors’ Days Days 81 73
Interest coverage x 0.4 0.4
Debt to equity ratio x 2.1 2.4
Return on assets % 3.8 2.5
Return on equity % -13.8 -21.7
Return on capital employed % 3.4 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how JAIPRAKASH POWER has performed over the last 5 years, please visit here.

JAIPRAKASH POWER Share Price Performance

Over the last one year, JAIPRAKASH POWER share price has moved up from Rs 6.9 to Rs 2.1, registering a loss of Rs 4.8 or around 70.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,005.0 (up 1.1%). Over the last one year it has moved down from 2,297.2 to 2,005.0, a loss of 292 points (down 12.7%).

Overall, the S&P BSE SENSEX is up 8.6% over the year.

(To know more, check out historical annual results for JAIPRAKASH POWER and quarterly results for JAIPRAKASH POWER)