JINDAL SAW 2023-24 Annual Report Analysis

Mon, 27 May

JINDAL SAW 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 SAW Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY24 as against 8.8% in FY23.
• Depreciation charges decreased by 4.0% and finance costs decreased by 8.1% YoY, respectively.
• Other income grew by 74.4% YoY.
• Net profit for the year grew by 264.5% YoY.
• Net profit margins during the year grew from 2.5% in FY23 to 9.0% in FY24.

JINDAL SAW Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	178,678	179,620	0.5%
Other income	Rs m	2,388	4,164	74.4%
Total Revenues	Rs m	181,066	183,783	1.5%
Gross profit	Rs m	15,796	28,097	77.9%
Depreciation	Rs m	4,708	4,520	-4.0%
Interest	Rs m	6,376	5,858	-8.1%
Profit before tax	Rs m	7,100	21,883	208.2%
Tax	Rs m	2,672	5,742	114.9%
Profit after tax	Rs m	4,428	16,141	264.5%
Gross profit margin	%	8.8	15.6
Effective tax rate	%	37.6	26.2
Net profit margin	%	2.5	9.0

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JINDAL SAW Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 62 billion as compared to Rs 80 billion in FY23, thereby witnessing an decrease of -22.5%.
• Long-term debt down at Rs 13 billion as compared to Rs 17 billion during FY23, a fall of 26.3%.
• Current assets rose 6% and stood at Rs 94 billion, while fixed assets rose 4% and stood at Rs 93 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 187 billion as against Rs 179 billion during FY23, thereby witnessing a growth of 5%.

JINDAL SAW Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	79,228	101,328	27.9
Current Liabilities	Rs m	80,431	62,345	-22.5
Long-term Debt	Rs m	17,348	12,789	-26.3
Total Liabilities	Rs m	178,611	187,491	5.0
Current assets	Rs m	89,056	94,276	5.9
Fixed Assets	Rs m	89,555	93,215	4.1
Total Assets	Rs m	178,611	187,491	5.0

JINDAL SAW Cash Flow Statement Analysis

• JINDAL SAW's cash flow from operating activities (CFO) during FY24 stood at Rs 21 billion, an improvement of 32.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -17 billion, an improvement of 2,262.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -403 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 billion from the Rs -4 billion net cash flows seen during FY23.

JINDAL SAW 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	16,174	21,369	32.1%
Cash Flow from Investing Activities	Rs m	-702	-16,572	-
Cash Flow from Financing Activities	Rs m	-19,685	-403	-
Net Cash Flow	Rs m	-4,191	4,396	-

Current Valuations for JINDAL SAW

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 50.5, an improvement from the EPS of Rs 13.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 548.6, stands at 11.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	558.8	561.7
TTM Earnings per share	Rs	13.8	50.5
Diluted earnings per share	Rs	13.8	50.5
Price to Cash Flow	x	5.1	5.4
TTM P/E ratio	x	10.4	11.0
Price / Book Value ratio	x	0.5	1.1
Market Cap	Rs m	40,729	112,467
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for JINDAL SAW

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.1x 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 improved and stood at 4.7x during FY24, from 2.1x 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 15.9% during FY24, from 5.6% 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 24.3% during FY24, from 14.0% 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 11.7% during FY24, from 6.0% 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	1.1	1.5
Debtors’ Days	Days	728	595
Interest coverage	x	2.1	4.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	6.0	11.7
Return on equity	%	5.6	15.9
Return on capital employed	%	14.0	24.3

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

JINDAL SAW Share Price Performance

Over the last one year, JINDAL SAW share price has moved up from Rs 199.1 to Rs 548.6, registering a gain of Rs 349.5 or around 175.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,636.4 (up 0.5%). Over the last one year it has moved up from 19,763.2 to 33,636.4, a gain of 13,873 points (up 70.2%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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