ADANI GREEN ENERGY 2022-23 Annual Report Analysis

Fri, 30 Jun

ADANI GREEN ENERGY 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.

ADANI GREEN ENERGY Income Statement Analysis

• Operating income during the year rose 51.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 61.6% in FY23 as against 69.6% in FY22.
• Depreciation charges increased by 53.1% and finance costs increased by 31.4% YoY, respectively.
• Other income grew by 208.3% YoY.
• Net profit for the year grew by 99.0% YoY.
• Net profit margins during the year grew from 9.5% in FY22 to 12.5% in FY23.

ADANI GREEN ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	51,330	77,920	51.8%
Other income	Rs m	4,440	13,690	208.3%
Total Revenues	Rs m	55,770	91,610	64.3%
Gross profit	Rs m	35,750	47,960	34.2%
Depreciation	Rs m	8,490	13,000	53.1%
Interest	Rs m	26,170	34,390	31.4%
Profit before tax	Rs m	5,530	14,260	157.9%
Tax	Rs m	640	4,530	607.8%
Profit after tax	Rs m	4,890	9,730	99.0%
Gross profit margin	%	69.6	61.6
Effective tax rate	%	11.6	31.8
Net profit margin	%	9.5	12.5

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ADANI GREEN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 79 billion as compared to Rs 115 billion in FY22, thereby witnessing an decrease of -31.0%.
• Long-term debt stood at Rs 501 billion as compared to Rs 441 billion during FY22, a growth of 13.4%.
• Current assets rose 31% and stood at Rs 72 billion, while fixed assets rose 13% and stood at Rs 591 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 669 billion as against Rs 586 billion during FY22, thereby witnessing a growth of 14%.

ADANI GREEN ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,900	58,800	394.1
Current Liabilities	Rs m	115,130	79,410	-31.0
Long-term Debt	Rs m	441,410	500,560	13.4
Total Liabilities	Rs m	586,050	669,020	14.2
Current assets	Rs m	55,060	72,130	31.0
Fixed Assets	Rs m	524,780	590,940	12.6
Total Assets	Rs m	586,050	669,020	14.2

ADANI GREEN ENERGY Cash Flow Statement Analysis

• ADANI GREEN ENERGY 's cash flow from operating activities (CFO) during FY23 stood at Rs 73 billion, an improvement of 132.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -39 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -30 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 billion from the Rs 4 billion net cash flows seen during FY22.

ADANI GREEN ENERGY 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	31,270	72,650	132.3%
Cash Flow from Investing Activities	Rs m	-193,480	-38,570	-
Cash Flow from Financing Activities	Rs m	159,860	-29,730	-
Net Cash Flow	Rs m	3,830	4,350	13.6%

Current Valuations for ADANI GREEN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 944.6, stands at 163.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 25.4 times, while the price to sales ratio stands at 19.2 times.
• The company's price to cash flow (P/CF) ratio stood at 121.5 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	32.8	49.2
TTM Earnings per share	Rs	3.1	6.1
Diluted earnings per share	Rs	3.1	6.1
Price to Cash Flow	x	226.5	121.5
TTM P/E ratio	x	621.1	163.7
Price / Book Value ratio	x	196.4	47.0
Market Cap	Rs m	2,337,498	2,762,038
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI GREEN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.5x 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 improved and stood at 1.4x during FY23, from 1.2x 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 16.5% during FY23, from 41.1% 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 improved and stood at 8.7% during FY23, from 7.0% 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 improved and stood at 6.6% during FY23, from 5.3% 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	0.5	0.9
Debtors’ Days	Days	13	10
Interest coverage	x	1.2	1.4
Debt to equity ratio	x	37.1	8.5
Return on assets	%	5.3	6.6
Return on equity	%	41.1	16.5
Return on capital employed	%	7.0	8.7

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 down from Rs 1,929.0 to Rs 944.6, registering a loss of Rs 984.4 or around 51.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,002.6 (up 0.0%). Over the last one year it has moved down from 4,067.0 to 4,002.6, a loss of 64 points (down 1.6%).

Overall, the S&P BSE SENSEX is up 21.3% over the year.

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