CG POWER & INDUSTRIAL 2022-23 Annual Report Analysis

Mon, 10 Jul

CG POWER & INDUSTRIAL 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.

CG POWER & INDUSTRIAL Income Statement Analysis

• Operating income during the year rose 27.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY23 as against 16.3% in FY22.
• Depreciation charges decreased by 4.1% and finance costs decreased by 65.5% YoY, respectively.
• Other income grew by 80.4% YoY.
• Net profit for the year grew by 26.5% YoY.
• Net profit margins during the year declined from 11.5% in FY22 to 11.4% in FY23.

CG POWER & INDUSTRIAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	54,835	69,725	27.2%
Other income	Rs m	376	678	80.4%
Total Revenues	Rs m	55,211	70,403	27.5%
Gross profit	Rs m	8,944	10,571	18.2%
Depreciation	Rs m	986	945	-4.1%
Interest	Rs m	815	282	-65.5%
Profit before tax	Rs m	7,519	10,021	33.3%
Tax	Rs m	1,223	2,058	68.3%
Profit after tax	Rs m	6,296	7,963	26.5%
Gross profit margin	%	16.3	15.2
Effective tax rate	%	16.3	20.5
Net profit margin	%	11.5	11.4

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CG POWER & INDUSTRIAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 21 billion as compared to Rs 28 billion in FY22, thereby witnessing an decrease of -27.5%.
• Current assets rose 22% and stood at Rs 30 billion, while fixed assets fell 10% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 42 billion as against Rs 36 billion during FY22, thereby witnessing a growth of 17%.

CG POWER & INDUSTRIAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,829	17,845	81.5
Current Liabilities	Rs m	28,496	20,656	-27.5
Long-term Debt	Rs m	3,075	0	-100.0
Total Liabilities	Rs m	36,002	41,948	16.5
Current assets	Rs m	24,419	29,819	22.1
Fixed Assets	Rs m	11,503	10,306	-10.4
Total Assets	Rs m	36,002	41,948	16.5

CG POWER & INDUSTRIAL Cash Flow Statement Analysis

• CG POWER & INDUSTRIAL's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 96.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -207 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs -907 million net cash flows seen during FY22.

CG POWER & INDUSTRIAL 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	4,829	9,469	96.1%
Cash Flow from Investing Activities	Rs m	2,269	-207	-
Cash Flow from Financing Activities	Rs m	-8,004	-6,115	-
Net Cash Flow	Rs m	-907	3,146	-

Current Valuations for CG POWER & INDUSTRIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 386.3, stands at 73.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 33.1 times, while the price to sales ratio stands at 8.5 times.
• The company's price to cash flow (P/CF) ratio stood at 42.5 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	38.0	45.7
TTM Earnings per share	Rs	4.4	5.2
Diluted earnings per share	Rs	4.1	5.2
Price to Cash Flow	x	39.7	42.5
TTM P/E ratio	x	31.8	73.8
Price / Book Value ratio	x	20.1	21.2
Market Cap	Rs m	197,496	379,034
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for CG POWER & INDUSTRIAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 36.6x during FY23, from 10.2x 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 44.6% during FY23, from 64.1% 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 declined and down at 57.7% during FY23, from 64.6% 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 19.7% during FY23, from 19.8% 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	1.4
Debtors’ Days	Days	6	7
Interest coverage	x	10.2	36.6
Debt to equity ratio	x	0.3	0.0
Return on assets	%	19.8	19.7
Return on equity	%	64.1	44.6
Return on capital employed	%	64.6	57.7

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

CG POWER & INDUSTRIAL Share Price Performance

Over the last one year, CG POWER & INDUSTRIAL share price has moved up from Rs 200.9 to Rs 386.3, registering a gain of Rs 185.5 or around 92.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,670.4 (down 0.8%). Over the last one year it has moved up from 27,580.5 to 40,670.4, a gain of 13,090 points (up 47.5%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for CG POWER & INDUSTRIAL and quarterly results for CG POWER & INDUSTRIAL)