GUJARAT INDUSTRIES POWER 2022-23 Annual Report Analysis

Thu, 31 Aug

GUJARAT INDUSTRIES 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.

GUJARAT INDUSTRIES POWER Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.1% in FY23 as against 34.6% in FY22.
• Depreciation charges increased by 9.3% and finance costs increased by 30.5% YoY, respectively.
• Other income grew by 127.7% YoY.
• Net profit for the year grew by 10.1% YoY.
• Net profit margins during the year declined from 14.6% in FY22 to 13.9% in FY23.

GUJARAT INDUSTRIES POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,724	13,556	15.6%
Other income	Rs m	211	481	127.7%
Total Revenues	Rs m	11,935	14,037	17.6%
Gross profit	Rs m	4,059	4,078	0.5%
Depreciation	Rs m	1,509	1,650	9.3%
Interest	Rs m	288	375	30.5%
Profit before tax	Rs m	2,473	2,534	2.5%
Tax	Rs m	760	647	-14.8%
Profit after tax	Rs m	1,713	1,887	10.1%
Gross profit margin	%	34.6	30.1
Effective tax rate	%	30.7	25.5
Net profit margin	%	14.6	13.9

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GUJARAT INDUSTRIES POWER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -18.1%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY22, a fall of 2.3%.
• Current assets rose 20% and stood at Rs 11 billion, while fixed assets fell 3% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 45 billion as against Rs 44 billion during FY22, thereby witnessing a growth of 2%.

GUJARAT INDUSTRIES POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	30,444	31,543	3.6
Current Liabilities	Rs m	3,473	2,844	-18.1
Long-term Debt	Rs m	3,999	3,907	-2.3
Total Liabilities	Rs m	44,033	44,870	1.9
Current assets	Rs m	8,842	10,609	20.0
Fixed Assets	Rs m	35,190	34,261	-2.6
Total Assets	Rs m	44,033	44,870	1.9

GUJARAT INDUSTRIES POWER Cash Flow Statement Analysis

• GUJARAT INDUSTRIES POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 13.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -23 million net cash flows seen during FY22.

GUJARAT INDUSTRIES 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	3,620	4,103	13.3%
Cash Flow from Investing Activities	Rs m	-3,398	-1,282	-
Cash Flow from Financing Activities	Rs m	-245	-1,102	-
Net Cash Flow	Rs m	-23	1,718	-

Current Valuations for GUJARAT INDUSTRIES POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.5, an improvement from the EPS of Rs 11.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 120.4, stands at 9.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.8 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	77.5	89.6
TTM Earnings per share	Rs	11.3	12.5
Diluted earnings per share	Rs	11.3	12.5
Price to Cash Flow	x	3.4	3.8
TTM P/E ratio	x	6.5	9.9
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	13,163	13,295
Dividends per share (Unadj.)	Rs	2.5	3.8

Ratio Analysis for GUJARAT INDUSTRIES POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY23, from 2.5x 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 deteriorated and stood at 7.8x during FY23, from 9.6x 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 6.0% during FY23, from 5.6% 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 8.2% during FY23, from 8.0% 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 5.0% during FY23, from 4.5% 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	2.5	3.7
Debtors’ Days	Days	1,011	827
Interest coverage	x	9.6	7.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.5	5.0
Return on equity	%	5.6	6.0
Return on capital employed	%	8.0	8.2

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

GUJARAT INDUSTRIES POWER Share Price Performance

Over the last one year, GUJARAT INDUSTRIES POWER share price has moved up from Rs 92.1 to Rs 120.4, registering a gain of Rs 28.3 or around 30.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,374.3 (down 0.5%). Over the last one year it has moved down from 5,228.0 to 4,374.3, a loss of 854 points (down 16.3%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for GUJARAT INDUSTRIES POWER and quarterly results for GUJARAT INDUSTRIES POWER)