ADANI GREEN ENERGY 2021-22 Annual Report Analysis

Wed, 6 Jul

ADANI GREEN ENERGY has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ADANI GREEN ENERGY Income Statement Analysis

• Operating income during the year rose 64.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 69.6% in FY22 as against 68.9% in FY21.
• Depreciation charges increased by 74.7% and finance costs increased by 24.1% YoY, respectively.
• Other income declined by 29.5% YoY.
• Net profit for the year grew by 177.3% YoY.
• Net profit margins during the year grew from 5.6% in FY21 to 9.5% in FY22.

ADANI GREEN ENERGY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	31,240	51,330	64.3%
Other income	Rs m	6,300	4,440	-29.5%
Total Revenues	Rs m	37,540	55,770	48.6%
Gross profit	Rs m	21,510	35,740	66.2%
Depreciation	Rs m	4,860	8,490	74.7%
Interest	Rs m	21,080	26,170	24.1%
Profit before tax	Rs m	1,870	5,520	195.2%
Tax	Rs m	110	640	481.8%
Profit after tax	Rs m	1,760	4,880	177.3%
Gross profit margin	%	68.9	69.6
Effective tax rate	%	5.9	11.6
Net profit margin	%	5.6	9.5

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ADANI GREEN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 119 billion as compared to Rs 59 billion in FY21, thereby witnessing an increase of 101.3%.
• Long-term debt stood at Rs 427 billion as compared to Rs 197 billion during FY21, a growth of 116.3%.
• Current assets rose 55% and stood at Rs 62 billion, while fixed assets rose 116% and stood at Rs 524 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 586 billion as against Rs 283 billion during FY21, thereby witnessing a growth of 107%.

ADANI GREEN ENERGY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	22,000	26,140	18.8
Current Liabilities	Rs m	59,280	119,320	101.3
Long-term Debt	Rs m	197,460	427,170	116.3
Total Liabilities	Rs m	283,010	586,050	107.1
Current assets	Rs m	39,890	61,880	55.1
Fixed Assets	Rs m	243,120	524,170	115.6
Total Assets	Rs m	283,010	586,050	107.1

ADANI GREEN ENERGY Cash Flow Statement Analysis

• ADANI GREEN ENERGY 's cash flow from operating activities (CFO) during FY22 stood at Rs 31 billion, an improvement of 91.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -193 billion, an improvement of 109.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 160 billion, an improvement of 126% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 4 billion from the Rs -5 billion net cash flows seen during FY21.

ADANI GREEN ENERGY Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	16,010	30,600	91.1%
Cash Flow from Investing Activities	Rs m	-92,250	-192,810	-
Cash Flow from Financing Activities	Rs m	70,830	159,860	125.7%
Net Cash Flow	Rs m	-4,530	3,830	-

Current Valuations for ADANI GREEN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,902.0, stands at 617.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 115.3 times, while the price to sales ratio stands at 58.0 times.
• The company's price to cash flow (P/CF) ratio stood at 174.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	20.0	32.8
TTM Earnings per share	Rs	1.1	3.1
Diluted earnings per share	Rs	1.1	3.1
Price to Cash Flow	x	264.2	174.8
TTM P/E ratio	x	982.7	617.4
Price / Book Value ratio	x	53.0	89.4
Market Cap	Rs m	1,165,660	2,337,498
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 0.5x during FY22, from 0.7x during FY21. 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 1.2x during FY22, from 1.1x during FY21. 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 18.7% during FY22, from 8.0% during FY22. 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 7.0% during FY22, from 10.5% during FY21. 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 5.3% during FY22, from 8.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.7	0.5
Debtors’ Days	Days	17	13
Interest coverage	x	1.1	1.2
Debt to equity ratio	x	9.0	16.3
Return on assets	%	8.1	5.3
Return on equity	%	8.0	18.7
Return on capital employed	%	10.5	7.0

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 1,006.2 to Rs 1,902.0, registering a gain of Rs 895.8 or around 89.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,103.4 (up 0.6%). Over the last one year it has moved up from 2,686.7 to 4,103.4, a gain of 1,417 points (up 52.7%).

Overall, the S&P BSE SENSEX is up 1.6% 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