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GE POWER INDIA 2022-23 Annual Report Analysis

Wed, 23 Aug

GE POWER INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GE POWER INDIA Income Statement Analysis

• Operating income during the year fell 31.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 17.3% in FY23 as against 11.5% in FY22.
• Depreciation charges decreased by 48.5% and finance costs increased by 4.9% YoY, respectively.
• Other income declined by 36.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 11.0% in FY22 to 24.5% in FY23.

GE POWER INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,204	17,958	-31.5%
Other income	Rs m	1,382	882	-36.2%
Total Revenues	Rs m	27,587	18,840	-31.7%
Gross profit	Rs m	-3,027	-3,105	NA
Depreciation	Rs m	437	225	-48.5%
Interest	Rs m	824	865	4.9%
Profit before tax	Rs m	-2,906	-3,313	NA
Tax	Rs m	-18	1,093	NA
Profit after tax	Rs m	-2,888	-4,406	NA
Gross profit margin	%	-11.5	-17.3
Effective tax rate	%	0.6	-33.0
Net profit margin	%	-11.0	-24.5

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GE POWER INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 24 billion as compared to Rs 26 billion in FY22, thereby witnessing an decrease of -6.0%.
• Current assets fell 15% and stood at Rs 25 billion, while fixed assets fell 3% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 36 billion as against Rs 41 billion during FY22, thereby witnessing a fall of 12%.

GE POWER INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,758	2,325	-65.6
Current Liabilities	Rs m	26,063	24,491	-6.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	40,644	35,800	-11.9
Current assets	Rs m	30,039	25,492	-15.1
Fixed Assets	Rs m	10,606	10,308	-2.8
Total Assets	Rs m	40,644	35,800	-11.9

GE POWER INDIA Cash Flow Statement Analysis

• GE POWER INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 898 million, an improvement of 82.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 62 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -480 million, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 479 million from the Rs -347 million net cash flows seen during FY22.

GE POWER INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	491	898	82.7%
Cash Flow from Investing Activities	Rs m	-50	62	-
Cash Flow from Financing Activities	Rs m	-788	-480	-
Net Cash Flow	Rs m	-347	479	-

Current Valuations for GE POWER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -65.5, an decline from the EPS of Rs -43.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 163.4, stands at -2.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -2.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	389.8	267.1
TTM Earnings per share	Rs	-43.0	-65.5
Diluted earnings per share	Rs	-43.0	-65.5
Price to Cash Flow	x	-4.2	-2.3
TTM P/E ratio	x	-3.5	-2.1
Price / Book Value ratio	x	2.5	4.2
Market Cap	Rs m	16,889	9,772
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GE POWER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.2x during FY22. 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 -2.8x during FY23, from -2.5x during FY22. 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 -189.5% during FY23, from -42.7% during FY23. 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 -105.3% during FY23, from -30.8% during FY22. 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 -9.9% during FY23, from -5.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.0
Debtors’ Days	Days	334	397
Interest coverage	x	-2.5	-2.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-5.1	-9.9
Return on equity	%	-42.7	-189.5
Return on capital employed	%	-30.8	-105.3

To see how GE POWER INDIA has performed over the last 5 years, please visit here.

GE POWER INDIA Share Price Performance

Over the last one year, GE POWER INDIA share price has moved up from Rs 140.7 to Rs 163.4, registering a gain of Rs 22.7 or around 16.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 44,687.5 (up 1.1%). Over the last one year it has moved up from 31,336.5 to 44,687.5, a gain of 13,351 points (up 42.6%).

Overall, the S&P BSE SENSEX is up 11.1% over the year.

(To know more, check out historical annual results for GE POWER INDIA and quarterly results for GE POWER INDIA)