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JINDAL DRILLING 2023-24 Annual Report Analysis

Thu, 8 Aug

JINDAL DRILLING has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

JINDAL DRILLING Income Statement Analysis

• Operating income during the year rose 20.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.5% in FY24 as against 31.8% in FY23.
• Depreciation charges increased by 1.3% and finance costs increased by 43.4% YoY, respectively.
• Other income declined by 38.2% YoY.
• Net profit for the year declined by 47.2% YoY.
• Net profit margins during the year declined from 18.9% in FY23 to 8.3% in FY24.

JINDAL DRILLING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,122	6,170	20.5%
Other income	Rs m	469	290	-38.2%
Total Revenues	Rs m	5,591	6,460	15.5%
Gross profit	Rs m	1,627	1,387	-14.8%
Depreciation	Rs m	628	636	1.3%
Interest	Rs m	107	153	43.4%
Profit before tax	Rs m	1,361	887	-34.8%
Tax	Rs m	392	376	-4.2%
Profit after tax	Rs m	969	511	-47.2%
Gross profit margin	%	31.8	22.5
Effective tax rate	%	28.8	42.3
Net profit margin	%	18.9	8.3

For Investors: Our Big Prediction

JINDAL DRILLING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 18.0%.
• Long-term debt stood at Rs 1 billion as compared to Rs 799 million during FY23, a growth of 65.6%.
• Current assets rose 31% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 11%.

JINDAL DRILLING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,093	13,622	4.0
Current Liabilities	Rs m	3,656	4,312	18.0
Long-term Debt	Rs m	799	1,323	65.6
Total Liabilities	Rs m	18,539	20,518	10.7
Current assets	Rs m	5,370	7,048	31.2
Fixed Assets	Rs m	13,168	13,470	2.3
Total Assets	Rs m	18,539	20,518	10.7

JINDAL DRILLING Cash Flow Statement Analysis

• JINDAL DRILLING's cash flow from operating activities (CFO) during FY24 stood at Rs -442 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -205 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 731 million, an improvement of 417% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 85 million from the Rs 32 million net cash flows seen during FY23.

JINDAL DRILLING Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	641	-442	-
Cash Flow from Investing Activities	Rs m	-378	-205	-
Cash Flow from Financing Activities	Rs m	-231	731	-
Net Cash Flow	Rs m	32	85	164.3%

Current Valuations for JINDAL DRILLING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.6, an decline from the EPS of Rs 33.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 633.3, stands at 15.7 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 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 14.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	176.7	212.9
TTM Earnings per share	Rs	33.4	17.6
Diluted earnings per share	Rs	33.4	17.6
Price to Cash Flow	x	4.4	14.6
TTM P/E ratio	x	6.2	15.7
Price / Book Value ratio	x	0.6	1.2
Market Cap	Rs m	7,438	16,768
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for JINDAL DRILLING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x during FY23. 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 6.8x during FY24, from 13.7x during FY23. 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 3.8% during FY24, from 7.4% during FY24. 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 7.0% during FY24, from 10.6% during FY23. 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 3.2% during FY24, from 5.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.5	1.6
Debtors’ Days	Days	1,101	1,123
Interest coverage	x	13.7	6.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.8	3.2
Return on equity	%	7.4	3.8
Return on capital employed	%	10.6	7.0

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

JINDAL DRILLING Share Price Performance

Over the last one year, JINDAL DRILLING share price has moved up from Rs 407.4 to Rs 633.3, registering a gain of Rs 225.9 or around 55.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,980.3 (down 0.3%). Over the last one year it has moved up from 43,202.8 to 71,980.3, a gain of 28,777 points (up 66.6%).

Overall, the S&P BSE SENSEX is up 20.0% over the year.

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