RELIANCE INFRA 2022-23 Annual Report Analysis

Mon, 17 Jul

RELIANCE INFRA 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.

RELIANCE INFRA Income Statement Analysis

• Operating income during the year rose 12.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 56.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.0% in FY23 as against 10.4% in FY22.
• Depreciation charges increased by 12.9% and finance costs increased by 16.2% YoY, respectively.
• Other income declined by 28.7% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 3.6% in FY22 to 11.6% in FY23.

RELIANCE INFRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	189,817	213,396	12.4%
Other income	Rs m	7,215	5,147	-28.7%
Total Revenues	Rs m	197,031	218,543	10.9%
Gross profit	Rs m	19,661	8,616	-56.2%
Depreciation	Rs m	12,834	14,485	12.9%
Interest	Rs m	20,604	23,935	16.2%
Profit before tax	Rs m	-6,563	-24,657	NA
Tax	Rs m	226	74	-67.3%
Profit after tax	Rs m	-6,788	-24,730	NA
Gross profit margin	%	10.4	4.0
Effective tax rate	%	-3.4	-0.3
Net profit margin	%	-3.6	-11.6

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RELIANCE INFRA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 341 billion as compared to Rs 326 billion in FY22, thereby witnessing an increase of 4.7%.
• Long-term debt down at Rs 44 billion as compared to Rs 55 billion during FY22, a fall of 18.7%.
• Current assets fell 12% and stood at Rs 120 billion, while fixed assets fell 5% and stood at Rs 251 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 609 billion as against Rs 624 billion during FY22, thereby witnessing a fall of 2%.

RELIANCE INFRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	122,697	92,937	-24.3
Current Liabilities	Rs m	325,904	341,322	4.7
Long-term Debt	Rs m	54,523	44,348	-18.7
Total Liabilities	Rs m	624,027	608,992	-2.4
Current assets	Rs m	135,898	119,620	-12.0
Fixed Assets	Rs m	264,702	250,525	-5.4
Total Assets	Rs m	624,027	608,992	-2.4

RELIANCE INFRA Cash Flow Statement Analysis

• RELIANCE INFRA's cash flow from operating activities (CFO) during FY23 stood at Rs 35 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -13 billion, an improvement of 165.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -22 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 4 billion net cash flows seen during FY22.

RELIANCE INFRA 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	37,993	34,583	-9.0%
Cash Flow from Investing Activities	Rs m	-5,017	-13,331	-
Cash Flow from Financing Activities	Rs m	-29,416	-22,417	-
Net Cash Flow	Rs m	3,561	-1,165	-

Current Valuations for RELIANCE INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -70.3, an decline from the EPS of Rs -25.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 134.9, stands at -1.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at -4.8 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	721.8	606.6
TTM Earnings per share	Rs	-25.8	-70.3
Diluted earnings per share	Rs	-19.3	-70.3
Price to Cash Flow	x	6.6	-4.8
TTM P/E ratio	x	-5.8	-1.9
Price / Book Value ratio	x	0.2	0.5
Market Cap	Rs m	23,952	49,682
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RELIANCE INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY23, from 0.4x 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 0.0x during FY23, from 0.7x 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 -26.6% during FY23, from -5.5% 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 -0.5% during FY23, from 7.9% 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 declined and down at -0.1% during FY23, from 2.2% 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	0.4	0.4
Debtors’ Days	Days	8	4
Interest coverage	x	0.7	0.0
Debt to equity ratio	x	0.4	0.5
Return on assets	%	2.2	-0.1
Return on equity	%	-5.5	-26.6
Return on capital employed	%	7.9	-0.5

To see how RELIANCE INFRA has performed over the last 5 years, please visit here.

RELIANCE INFRA Share Price Performance

Over the last one year, RELIANCE INFRA share price has moved up from Rs 99.4 to Rs 134.9, registering a gain of Rs 35.5 or around 35.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,983.3 (up 0.3%). Over the last one year it has moved down from 4,390.2 to 3,983.3, a loss of 407 points (down 9.3%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for RELIANCE INFRA and quarterly results for RELIANCE INFRA)