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GENUS POWER 2022-23 Annual Report Analysis

Mon, 11 Sep

GENUS 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.

GENUS POWER Income Statement Analysis

• Operating income during the year rose 18.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.7% in FY23 as against 8.7% in FY22.
• Depreciation charges decreased by 8.4% and finance costs increased by 12.4% YoY, respectively.
• Other income declined by 76.9% YoY.
• Net profit for the year declined by 49.2% YoY.
• Net profit margins during the year declined from 8.5% in FY22 to 3.7% in FY23.

GENUS POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,851	8,084	18.0%
Other income	Rs m	594	137	-76.9%
Total Revenues	Rs m	7,444	8,221	10.4%
Gross profit	Rs m	596	787	31.9%
Depreciation	Rs m	205	187	-8.4%
Interest	Rs m	257	288	12.4%
Profit before tax	Rs m	729	448	-38.5%
Tax	Rs m	145	152	4.6%
Profit after tax	Rs m	584	296	-49.2%
Gross profit margin	%	8.7	9.7
Effective tax rate	%	19.9	33.8
Net profit margin	%	8.5	3.7

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GENUS POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 14.5%.
• Long-term debt stood at Rs 17 million as compared to Rs 8 million during FY22, a growth of 118.5%.
• Current assets rose 14% and stood at Rs 13 billion, while fixed assets fell 1% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 10%.

GENUS POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,541	9,768	2.4
Current Liabilities	Rs m	5,033	5,760	14.5
Long-term Debt	Rs m	8	17	118.5
Total Liabilities	Rs m	15,121	16,620	9.9
Current assets	Rs m	11,376	12,922	13.6
Fixed Assets	Rs m	3,744	3,698	-1.2
Total Assets	Rs m	15,121	16,620	9.9

GENUS POWER Cash Flow Statement Analysis

• GENUS POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 864 million, an improvement of 209.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -793 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 859 million, an improvement of 686% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 930 million from the Rs -951 million net cash flows seen during FY22.

GENUS 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	279	864	209.0%
Cash Flow from Investing Activities	Rs m	-1,083	-793	-
Cash Flow from Financing Activities	Rs m	-147	859	-
Net Cash Flow	Rs m	-951	930	-

Current Valuations for GENUS POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an decline from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 269.0, stands at 171.7 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 8.6 times.
• The company's price to cash flow (P/CF) ratio stood at 47.7 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	26.6	31.4
TTM Earnings per share	Rs	2.3	1.2
Diluted earnings per share	Rs	2.3	1.2
Price to Cash Flow	x	23.5	47.7
TTM P/E ratio	x	31.7	171.7
Price / Book Value ratio	x	1.8	2.4
Market Cap	Rs m	17,446	23,080
Dividends per share (Unadj.)	Rs	0.3	0.8

Ratio Analysis for GENUS POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 2.3x 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 2.6x during FY23, from 3.8x 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 3.0% during FY23, from 6.1% 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 7.5% during FY23, from 10.3% 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 3.5% during FY23, from 5.6% 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	2.3	2.2
Debtors’ Days	Days	2,972	2,130
Interest coverage	x	3.8	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.6	3.5
Return on equity	%	6.1	3.0
Return on capital employed	%	10.3	7.5

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

GENUS POWER Share Price Performance

Over the last one year, GENUS POWER share price has moved up from Rs 87.3 to Rs 269.0, registering a gain of Rs 181.7 or around 208.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,821.9 (up 0.5%). Over the last one year it has moved up from 33,327.8 to 47,821.9, a gain of 14,494 points (up 43.5%).

Overall, the S&P BSE SENSEX is up 13.5% over the year.

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