ADANI POWER 2022-23 Annual Report Analysis

Fri, 30 Jun

ADANI POWER 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 POWER Income Statement Analysis

• Operating income during the year rose 39.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.9% in FY23 as against 35.4% in FY22.
• Depreciation charges increased by 6.0% and finance costs decreased by 18.6% YoY, respectively.
• Other income grew by 7.3% YoY.
• Net profit for the year grew by 118.4% YoY.
• Net profit margins during the year grew from 17.7% in FY22 to 27.7% in FY23.

ADANI POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	277,112	387,733	39.9%
Other income	Rs m	39,753	42,672	7.3%
Total Revenues	Rs m	316,865	430,405	35.8%
Gross profit	Rs m	98,142	100,447	2.3%
Depreciation	Rs m	31,175	33,037	6.0%
Interest	Rs m	40,948	33,335	-18.6%
Profit before tax	Rs m	65,771	76,747	16.7%
Tax	Rs m	16,656	-30,519	NA
Profit after tax	Rs m	49,116	107,266	118.4%
Gross profit margin	%	35.4	25.9
Effective tax rate	%	25.3	-39.8
Net profit margin	%	17.7	27.7

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

ADANI POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 177 billion as compared to Rs 171 billion in FY22, thereby witnessing an increase of 3.5%.
• Long-term debt down at Rs 337 billion as compared to Rs 379 billion during FY22, a fall of 11.0%.
• Current assets rose 20% and stood at Rs 196 billion, while fixed assets rose 1% and stood at Rs 663 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 858 billion as against Rs 820 billion during FY22, thereby witnessing a growth of 5%.

ADANI POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	187,034	298,757	59.7
Current Liabilities	Rs m	171,437	177,446	3.5
Long-term Debt	Rs m	378,713	337,026	-11.0
Total Liabilities	Rs m	819,810	858,213	4.7
Current assets	Rs m	162,281	195,530	20.5
Fixed Assets	Rs m	657,530	662,683	0.8
Total Assets	Rs m	819,810	858,213	4.7

ADANI POWER Cash Flow Statement Analysis

• ADANI POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 84 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 15 billion, an improvement of 170.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -104 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -4 billion from the Rs 7 billion net cash flows seen during FY22.

ADANI POWER 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	102,327	84,305	-17.6%
Cash Flow from Investing Activities	Rs m	5,721	15,444	170.0%
Cash Flow from Financing Activities	Rs m	-103,379	-104,085	-
Net Cash Flow	Rs m	6,693	-4,331	-

Current Valuations for ADANI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.8, an improvement from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 252.3, stands at 9.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	71.8	100.5
TTM Earnings per share	Rs	12.7	27.8
Diluted earnings per share	Rs	12.7	27.8
Price to Cash Flow	x	8.9	7.8
TTM P/E ratio	x	14.5	9.1
Price / Book Value ratio	x	2.7	3.6
Market Cap	Rs m	496,677	1,090,260
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 0.9x 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 3.3x during FY23, from 2.6x 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 improved and stood at 35.9% during FY23, from 26.3% 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 17.3% during FY23, from 18.9% 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 16.4% during FY23, from 11.0% 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	0.9	1.1
Debtors’ Days	Days	13	11
Interest coverage	x	2.6	3.3
Debt to equity ratio	x	2.0	1.1
Return on assets	%	11.0	16.4
Return on equity	%	26.3	35.9
Return on capital employed	%	18.9	17.3

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

ADANI POWER Share Price Performance

Over the last one year, ADANI POWER share price has moved down from Rs 262.6 to Rs 252.3, registering a loss of Rs 10.3 or around 3.9%.

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 POWER and quarterly results for ADANI POWER)