JINDAL STAINLESS 2023-24 Annual Report Analysis

Mon, 19 Aug

JINDAL STAINLESS 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 STAINLESS Income Statement Analysis

• Operating income during the year rose 8.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.1% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 21.4% and finance costs increased by 70.8% YoY, respectively.
• Other income grew by 84.0% YoY.
• Net profit for the year grew by 29.3% YoY.
• Net profit margins during the year grew from 5.8% in FY23 to 7.0% in FY24.

JINDAL STAINLESS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	356,970	385,625	8.0%
Other income	Rs m	1,970	3,626	84.0%
Total Revenues	Rs m	358,941	389,251	8.4%
Gross profit	Rs m	36,253	46,631	28.6%
Depreciation	Rs m	7,238	8,788	21.4%
Interest	Rs m	3,246	5,544	70.8%
Profit before tax	Rs m	27,740	35,925	29.5%
Tax	Rs m	6,901	8,990	30.3%
Profit after tax	Rs m	20,838	26,935	29.3%
Gross profit margin	%	10.2	12.1
Effective tax rate	%	24.9	25.0
Net profit margin	%	5.8	7.0

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JINDAL STAINLESS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 100 billion as compared to Rs 109 billion in FY23, thereby witnessing an decrease of -8.1%.
• Long-term debt stood at Rs 46 billion as compared to Rs 28 billion during FY23, a growth of 63.4%.
• Current assets fell 5% and stood at Rs 144 billion, while fixed assets rose 33% and stood at Rs 160 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 308 billion as against Rs 271 billion during FY23, thereby witnessing a growth of 13%.

JINDAL STAINLESS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	119,312	143,484	20.3
Current Liabilities	Rs m	109,258	100,400	-8.1
Long-term Debt	Rs m	27,918	45,628	63.4
Total Liabilities	Rs m	271,155	307,649	13.5
Current assets	Rs m	151,117	143,937	-4.8
Fixed Assets	Rs m	120,038	159,822	33.1
Total Assets	Rs m	271,155	307,649	13.5

JINDAL STAINLESS Cash Flow Statement Analysis

• JINDAL STAINLESS's cash flow from operating activities (CFO) during FY24 stood at Rs 48 billion, an improvement of 55.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -33 billion, an improvement of 34.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 billion from the Rs 2 billion net cash flows seen during FY23.

JINDAL STAINLESS 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	30,956	48,181	55.6%
Cash Flow from Investing Activities	Rs m	-24,817	-33,402	-
Cash Flow from Financing Activities	Rs m	-3,863	-8,294	-
Net Cash Flow	Rs m	2,289	7,655	234.4%

Current Valuations for JINDAL STAINLESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.7, an improvement from the EPS of Rs 25.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 711.0, stands at 22.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 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	433.5	468.3
TTM Earnings per share	Rs	25.3	32.7
Diluted earnings per share	Rs	25.3	32.7
Price to Cash Flow	x	8.5	11.2
TTM P/E ratio	x	12.1	22.7
Price / Book Value ratio	x	1.5	2.8
Market Cap	Rs m	174,589	400,374
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for JINDAL STAINLESS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.4x 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 7.5x during FY24, from 9.5x 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 improved and stood at 18.8% during FY24, from 17.5% 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 improved and stood at 21.9% during FY24, from 21.0% 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 improved and stood at 10.6% during FY24, from 8.9% 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	1.4	1.4
Debtors’ Days	Days	4	3
Interest coverage	x	9.5	7.5
Debt to equity ratio	x	0.2	0.3
Return on assets	%	8.9	10.6
Return on equity	%	17.5	18.8
Return on capital employed	%	21.0	21.9

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

JINDAL STAINLESS Share Price Performance

Over the last one year, JINDAL STAINLESS share price has moved up from Rs 418.3 to Rs 711.0, registering a gain of Rs 292.7 or around 70.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,136.3 (up 1.0%). Over the last one year it has moved up from 21,017.3 to 31,136.3, a gain of 10,119 points (up 48.1%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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