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

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

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	-

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

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

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)