Jasper Infotech Pvt Ltd IPO – 4 Numbers That Deserve Your Attention

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  • 02 Feb 2024
Jasper Infotech Pvt Ltd IPO – 4 Numbers That Deserve Your Attention

Key Highlights:

  • Evaluating key financial numbers helps you understand the company’s financial health.
  • Essential number to evaluate:
    • Revenue from operations: It helps you determine the total income the company generates from its primary business activities.
    • Profit after tax: Helps assess whether the company generates ample earnings to cover its expenses.
    • Debt to equity ratio: Aids in measuring the debt the company is using to finance its operations.
    • Earnings per share: Shows the profit the company generates from outstanding shares.
  • You can find these numbers in the company’s annual report.

Jasper Infotech Pvt Ltd, known as Snapdeal, will soon come out with its initial public offering (IPO). Among the several things you need to watch out for in an IPO as an investor are some key financial metrics. These help you understand and analyse the company’s financial positioning and health. If you plan to invest in Jasper Infotech Pvt Ltd’s IPO, watch out for these numbers.

Important financial metrics to evaluate

  • Revenue from operations

Revenue from operations is one of the critical numbers you need to examine closely. It refers to the total income generated from a company’s primary business activities. It excludes income from non-operating sources such as asset sales or investment.

An increase in revenue from operations shows growth in the company’s core business. It’s also crucial in determining a company’s potential to generate profits. The company’s revenue from operations rose by 14% to Rs 539 crore in FY 22 from Rs 471 crore in FY 21 [1].

  • Profit after tax

Profit after tax (PAT) is another crucial metric you need to evaluate before investing in Jasper Infotech Pvt Ltd's IPO. PAT shows the company's actual earnings, accounting for all its expenses, including taxes. It gives you a clear picture of a company's profitability. Analysing PAT helps you assess whether the company can generate enough earnings to cover its expenses. It also lets you understand how effectively the company can manage its tax obligations.

Note that PAT directly influences the earnings available for distribution to shareholders, and analysing it gives you insight into potential returns you might expect from your investment in the IPO.

  • Debt-to-equity ratio

Another important metric you need to evaluate is the company's debt-to-equity ratio. It can help you measure how much debt the company uses to finance its operations compared to shareholder's equity. A high debt-to-equity ratio poses higher financial risk.

It suggests that the company relies heavily on debt financing. On the other hand, a low D/E ratio shows a healthy balance between debt and equity. D/E ratio is calculated by dividing total borrowings by total equity.

  • Earnings per share (EPS)

EPS is another vital number you must closely evaluate before investing in Jasper Infotech Pvt Ltd’s IPO. EPS measures a company’s profitability on a per-share basis and shows how much profit the company is generating for each outstanding share.

A positive EPS shows profitability, which is essential for long-term sustainability. A consistent increase in EPS shows that the company is efficiently growing its earnings and is a positive indication for you seeking growth opportunities. EPS can also help you assess the risk of investing in the company. A declining EPS is an indication of operational challenges and financial instability.

Summing it Up

You can find these key numbers in the company’s annual report. Analyse them carefully and match them with your risk tolerance before investing in the IPO. Seek professional guidance in case of any doubt.

Frequently Asked Questions

In FY 23, Snapdeal registered Rs 388 crore in revenues. It has shown a significant uptick in its financial performance over the years.

Snapdeal's FY 23 consolidated loss after tax narrowed down to Rs 282 crore from Rs 510 crore in FY 22.

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