JSW HOLDINGS 2023-24 Annual Report Analysis

Thu, 4 Jul

JSW HOLDINGS 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.

JSW HOLDINGS Income Statement Analysis

• Operating income during the year fell 58.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 60.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 92.9% in FY24 as against 98.5% in FY23.
• Depreciation charges decreased by 40.0% increased by 0.0% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year declined by 60.4% YoY.
• Net profit margins during the year declined from 73.7% in FY23 to 70.0% in FY24.

JSW HOLDINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,068	1,696	-58.3%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	4,068	1,696	-58.3%
Gross profit	Rs m	4,009	1,575	-60.7%
Depreciation	Rs m	0	0	-40.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	4,009	1,575	-60.7%
Tax	Rs m	1,013	388	-61.6%
Profit after tax	Rs m	2,996	1,186	-60.4%
Gross profit margin	%	98.5	92.9
Effective tax rate	%	25.3	24.7
Net profit margin	%	73.7	70.0

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JSW HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 9 million as compared to Rs 9 million in FY23, thereby witnessing an decrease of -5.0%.
• Current assets rose 13% and stood at Rs 11 billion, while fixed assets rose 34% and stood at Rs 282 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 293 billion as against Rs 220 billion during FY23, thereby witnessing a growth of 33%.

JSW HOLDINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	194,094	254,342	31.0
Current Liabilities	Rs m	9	9	-5.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	220,390	292,509	32.7
Current assets	Rs m	9,348	10,557	12.9
Fixed Assets	Rs m	211,042	281,953	33.6
Total Assets	Rs m	220,390	292,509	32.7

JSW HOLDINGS Cash Flow Statement Analysis

• JSW HOLDINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 29 million from the Rs 8 million net cash flows seen during FY23.

JSW HOLDINGS 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	2,984	1,150	-61.5%
Cash Flow from Investing Activities	Rs m	-2,976	-1,121	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	8	29	256.9%

Current Valuations for JSW HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 106.9, an decline from the EPS of Rs 269.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,406.7, stands at 69.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 48.5 times.
• The company's price to cash flow (P/CF) ratio stood at 52.4 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	366.5	152.8
TTM Earnings per share	Rs	269.9	106.9
Diluted earnings per share	Rs	269.9	106.9
Price to Cash Flow	x	14.2	52.4
TTM P/E ratio	x	14.2	69.3
Price / Book Value ratio	x	0.2	0.2
Market Cap	Rs m	44,700	62,191
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JSW HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1,217.6x during FY24, from 1,023.9x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 0.5% during FY24, from 1.5% 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 declined and down at 0.6% during FY24, from 2.1% 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 0.4% during FY24, from 1.4% 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	1,023.9	1,217.6
Debtors’ Days	Days	21	38
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.4	0.4
Return on equity	%	1.5	0.5
Return on capital employed	%	2.1	0.6

To see how JSW HOLDINGS has performed over the last 5 years, please visit here.

JSW HOLDINGS Share Price Performance

Over the last one year, JSW HOLDINGS share price has moved up from Rs 4,575.0 to Rs 7,406.7, registering a gain of Rs 2,831.7 or around 61.9%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for JSW HOLDINGS and quarterly results for JSW HOLDINGS)