BOROSIL RENEWABLES 2022-23 Annual Report Analysis

Sun, 6 Aug

BOROSIL RENEWABLES 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.

BOROSIL RENEWABLES Income Statement Analysis

• Operating income during the year rose 38.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.0% in FY23 as against 37.9% in FY22.
• Depreciation charges increased by 27.2% and finance costs increased by 178.2% YoY, respectively.
• Other income declined by 2.8% YoY.
• Net profit for the year declined by 57.4% YoY.
• Net profit margins during the year declined from 25.7% in FY22 to 7.9% in FY23.

BOROSIL RENEWABLES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,442	8,940	38.8%
Other income	Rs m	206	201	-2.8%
Total Revenues	Rs m	6,648	9,141	37.5%
Gross profit	Rs m	2,444	1,428	-41.6%
Depreciation	Rs m	424	540	27.2%
Interest	Rs m	28	78	178.2%
Profit before tax	Rs m	2,198	1,010	-54.0%
Tax	Rs m	539	304	-43.6%
Profit after tax	Rs m	1,658	706	-57.4%
Gross profit margin	%	37.9	16.0
Effective tax rate	%	24.5	30.1
Net profit margin	%	25.7	7.9

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BOROSIL RENEWABLES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 214.3%.
• Long-term debt stood at Rs 3 billion as compared to Rs 1 billion during FY22, a growth of 128.7%.
• Current assets rose 45% and stood at Rs 6 billion, while fixed assets rose 60% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 55%.

BOROSIL RENEWABLES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,835	9,180	17.2
Current Liabilities	Rs m	1,026	3,224	214.3
Long-term Debt	Rs m	1,396	3,193	128.7
Total Liabilities	Rs m	10,554	16,322	54.7
Current assets	Rs m	3,845	5,568	44.8
Fixed Assets	Rs m	6,710	10,755	60.3
Total Assets	Rs m	10,554	16,322	54.7

BOROSIL RENEWABLES Cash Flow Statement Analysis

• BOROSIL RENEWABLES's cash flow from operating activities (CFO) during FY23 stood at Rs -64 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 148% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 93 million net cash flows seen during FY22.

BOROSIL RENEWABLES 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	1,734	-64	-
Cash Flow from Investing Activities	Rs m	-2,600	-2,412	-
Cash Flow from Financing Activities	Rs m	959	2,375	147.7%
Net Cash Flow	Rs m	93	1,149	1,133.9%

Current Valuations for BOROSIL RENEWABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an decline from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 497.5, stands at 91.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 63.5 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	49.4	68.5
TTM Earnings per share	Rs	12.7	5.4
Diluted earnings per share	Rs	12.7	5.4
Price to Cash Flow	x	36.4	63.5
TTM P/E ratio	x	45.7	91.9
Price / Book Value ratio	x	8.0	8.6
Market Cap	Rs m	62,818	79,150
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOROSIL RENEWABLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 3.7x 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 14.0x during FY23, from 79.5x 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 7.7% during FY23, from 21.2% 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 8.8% during FY23, from 24.1% 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 4.8% during FY23, from 16.0% 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	3.7	1.7
Debtors’ Days	Days	337	381
Interest coverage	x	79.5	14.0
Debt to equity ratio	x	0.2	0.3
Return on assets	%	16.0	4.8
Return on equity	%	21.2	7.7
Return on capital employed	%	24.1	8.8

To see how BOROSIL RENEWABLES has performed over the last 5 years, please visit here.

BOROSIL RENEWABLES Share Price Performance

Over the last one year, BOROSIL RENEWABLES share price has moved down from Rs 637.5 to Rs 497.5, registering a loss of Rs 140.1 or around 22.0%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for BOROSIL RENEWABLES and quarterly results for BOROSIL RENEWABLES)