ADANI GREEN ENERGY 2020-21 Annual Report Analysis

Wed, 31 Mar

ADANI GREEN ENERGY has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ADANI GREEN ENERGY Income Statement Analysis

• Operating income during the year rose 22.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 70.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 68.9% in FY21 as against 49.4% in FY20.
• Depreciation charges increased by 23.4% and finance costs increased by 81.7% YoY, respectively.
• Other income grew by 196.9% YoY.
• Net profit for the year declined by 388.5% YoY.
• Net profit margins during the year grew from 2.4% in FY20 to 5.6% in FY21.

ADANI GREEN ENERGY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	25,490	31,240	22.6%
Other income	Rs m	1,600	4,750	196.9%
Total Revenues	Rs m	27,090	35,990	32.9%
Gross profit	Rs m	12,590	21,510	70.8%
Depreciation	Rs m	3,940	4,860	23.4%
Interest	Rs m	10,750	19,530	81.7%
Profit before tax	Rs m	-500	1,870	-474.0%
Tax	Rs m	110	110	0.0%
Profit after tax	Rs m	-610	1,760	-388.5%
Gross profit margin	%	49.4	68.9
Effective tax rate	%	-22.0	5.9
Net profit margin	%	-2.4	5.6

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ADANI GREEN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 59 billion as compared to Rs 30 billion in FY20, thereby witnessing an increase of 96.6%.
• Long-term debt stood at Rs 197 billion as compared to Rs 126 billion during FY20, a growth of 56.6%.
• Current assets rose 54% and stood at Rs 40 billion, while fixed assets rose 57% and stood at Rs 243 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 283 billion as against Rs 181 billion during FY20, thereby witnessing a growth of 57%.

ADANI GREEN ENERGY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	23,560	22,000	-6.6
Current Liabilities	Rs m	30,160	59,280	96.6
Long-term Debt	Rs m	126,100	197,460	56.6
Total Liabilities	Rs m	180,750	283,010	56.6
Current assets	Rs m	25,830	39,890	54.4
Fixed Assets	Rs m	154,920	243,120	56.9
Total Assets	Rs m	180,750	283,010	56.6

ADANI GREEN ENERGY Cash Flow Statement Analysis

• ADANI GREEN ENERGY 's cash flow from operating activities (CFO) during FY21 stood at Rs 16 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -91 billion, an improvement of 144.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 71 billion, an improvement of 228% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -5 billion from the Rs 4 billion net cash flows seen during FY20.

ADANI GREEN ENERGY Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	19,650	16,010	-18.5%
Cash Flow from Investing Activities	Rs m	-37,430	-91,370	-
Cash Flow from Financing Activities	Rs m	21,610	70,830	227.8%
Net Cash Flow	Rs m	3,830	-4,530	-

Current Valuations for ADANI GREEN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an improvement from the EPS of Rs -0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,104.3, stands at 982.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 79.5 times, while the price to sales ratio stands at 55.3 times.
• The company's price to cash flow (P/CF) ratio stood at 176.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	16.3	20.0
TTM Earnings per share	Rs	-0.4	1.1
Diluted earnings per share	Rs	-0.4	1.1
Price to Cash Flow	x	73.1	176.1
TTM P/E ratio	x	-397.1	982.7
Price / Book Value ratio	x	9.2	53.0
Market Cap	Rs m	217,593	1,165,660
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI GREEN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.9x during FY20. 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 1.1x during FY21, from 1.0x during FY20. 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 8.0% during FY21, from -2.6% during FY21. 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 9.8% during FY21, from 6.8% during FY20. 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 7.5% during FY21, from 5.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.9	0.7
Debtors’ Days	Days	11	14
Interest coverage	x	1.0	1.1
Debt to equity ratio	x	5.4	9.0
Return on assets	%	5.6	7.5
Return on equity	%	-2.6	8.0
Return on capital employed	%	6.8	9.8

To see how ADANI GREEN ENERGY has performed over the last 5 years, please visit here.

ADANI GREEN ENERGY Share Price Performance

Over the last one year, ADANI GREEN ENERGY share price has moved up from Rs 153.7 to Rs 1,104.3, registering a gain of Rs 950.7 or around 618.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for ADANI GREEN ENERGY and quarterly results for ADANI GREEN ENERGY )

Read: Latest Annual Report Analysis of ADANI GREEN ENERGY