JINDAL STAINLESS (HISAR) 2021-22 Annual Report Analysis

Sat, 17 Sep

JINDAL STAINLESS (HISAR) 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.

JINDAL STAINLESS (HISAR) Income Statement Analysis

• Operating income during the year rose 59.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 101.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY22 as against 14.0% in FY21.
• Depreciation charges decreased by 13.9% and finance costs decreased by 47.7% YoY, respectively.
• Other income grew by 63.0% YoY.
• Net profit for the year grew by 179.9% YoY.
• Net profit margins during the year grew from 7.4% in FY21 to 13.0% in FY22.

JINDAL STAINLESS (HISAR) Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	94,003	150,114	59.7%
Other income	Rs m	1,072	1,748	63.0%
Total Revenues	Rs m	95,075	151,862	59.7%
Gross profit	Rs m	13,142	26,422	101.1%
Depreciation	Rs m	2,904	2,501	-13.9%
Interest	Rs m	2,509	1,312	-47.7%
Profit before tax	Rs m	8,801	24,356	176.8%
Tax	Rs m	1,845	4,884	164.7%
Profit after tax	Rs m	6,956	19,472	179.9%
Gross profit margin	%	14.0	17.6
Effective tax rate	%	21.0	20.1
Net profit margin	%	7.4	13.0

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JINDAL STAINLESS (HISAR) Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 45 billion as compared to Rs 31 billion in FY21, thereby witnessing an increase of 43.9%.
• Long-term debt down at Rs 12 billion as compared to Rs 13 billion during FY21, a fall of 4.6%.
• Current assets rose 111% and stood at Rs 72 billion, while fixed assets fell 13% and stood at Rs 35 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 107 billion as against Rs 74 billion during FY21, thereby witnessing a growth of 44%.

JINDAL STAINLESS (HISAR) Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	29,712	49,094	65.2
Current Liabilities	Rs m	31,461	45,281	43.9
Long-term Debt	Rs m	12,504	11,935	-4.6
Total Liabilities	Rs m	74,419	107,077	43.9
Current assets	Rs m	34,054	71,879	111.1
Fixed Assets	Rs m	40,365	35,198	-12.8
Total Assets	Rs m	74,419	107,077	43.9

JINDAL STAINLESS (HISAR) Cash Flow Statement Analysis

• JINDAL STAINLESS (HISAR)'s cash flow from operating activities (CFO) during FY22 stood at Rs -28 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 121% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 178 million from the Rs -112 million net cash flows seen during FY21.

JINDAL STAINLESS (HISAR) 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	13,053	-28	-
Cash Flow from Investing Activities	Rs m	-3,554	-1,819	-
Cash Flow from Financing Activities	Rs m	-9,611	2,024	-
Net Cash Flow	Rs m	-112	178	-

Current Valuations for JINDAL STAINLESS (HISAR)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 82.5, an improvement from the EPS of Rs 29.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 260.3, stands at 4.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 3.0 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	398.4	636.3
TTM Earnings per share	Rs	29.5	82.5
Diluted earnings per share	Rs	29.5	82.5
Price to Cash Flow	x	3.0	3.0
TTM P/E ratio	x	5.4	4.5
Price / Book Value ratio	x	0.8	1.3
Market Cap	Rs m	23,782	65,714
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JINDAL STAINLESS (HISAR)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.1x 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 improved and stood at 19.6x during FY22, from 4.5x 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 improved and stood at 39.7% during FY22, from 23.4% 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 improved and stood at 42.1% during FY22, from 26.8% 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 improved and stood at 19.4% during FY22, from 12.7% 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	1.1	1.6
Debtors’ Days	Days	4	4
Interest coverage	x	4.5	19.6
Debt to equity ratio	x	0.4	0.2
Return on assets	%	12.7	19.4
Return on equity	%	23.4	39.7
Return on capital employed	%	26.8	42.1

To see how JINDAL STAINLESS (HISAR) has performed over the last 5 years, please visit here.

JINDAL STAINLESS (HISAR) Share Price Performance

Over the last one year, JINDAL STAINLESS (HISAR) share price has moved down from Rs 297.8 to Rs 260.3, registering a loss of Rs 37.6 or around 12.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,164.0 (down 2.0%). Over the last one year it has moved down from 20,477.7 to 19,164.0, a loss of 1,314 points (down 6.4%).

Overall, the S&P BSE SENSEX is up 0.2% over the year.

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