GODAWARI POWER 2021-22 Annual Report Analysis

Thu, 25 Aug

GODAWARI POWER has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GODAWARI POWER Income Statement Analysis

• Operating income during the year rose 36.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 72.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.3% in FY22 as against 28.7% in FY21.
• Depreciation charges decreased by 3.9% and finance costs decreased by 82.9% YoY, respectively.
• Other income grew by 797.7% YoY.
• Net profit for the year grew by 132.5% YoY.
• Net profit margins during the year grew from 15.4% in FY21 to 26.2% in FY22.

GODAWARI POWER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	39,576	53,992	36.4%
Other income	Rs m	34	304	797.7%
Total Revenues	Rs m	39,610	54,296	37.1%
Gross profit	Rs m	11,370	19,619	72.5%
Depreciation	Rs m	1,090	1,047	-3.9%
Interest	Rs m	1,150	197	-82.9%
Profit before tax	Rs m	9,165	18,679	103.8%
Tax	Rs m	3,071	4,511	46.9%
Profit after tax	Rs m	6,094	14,167	132.5%
Gross profit margin	%	28.7	36.3
Effective tax rate	%	33.5	24.2
Net profit margin	%	15.4	26.2

Big Opportunity: India's Third Giant Leap

GODAWARI POWER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 12 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 203.4%.
• Long-term debt down at Rs 102 million as compared to Rs 8 billion during FY21, a fall of 98.7%.
• Current assets rose 134% and stood at Rs 24 billion, while fixed assets rose 2% and stood at Rs 25 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 49 billion as against Rs 35 billion during FY21, thereby witnessing a growth of 41%.

GODAWARI POWER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	20,356	33,123	62.7
Current Liabilities	Rs m	4,071	12,350	203.4
Long-term Debt	Rs m	7,711	102	-98.7
Total Liabilities	Rs m	34,736	48,899	40.8
Current assets	Rs m	10,190	23,810	133.7
Fixed Assets	Rs m	24,546	25,089	2.2
Total Assets	Rs m	34,736	48,899	40.8

GODAWARI POWER Cash Flow Statement Analysis

• GODAWARI POWER's cash flow from operating activities (CFO) during FY22 stood at Rs 13 billion, an improvement of 37.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -11 billion, an improvement of 1,660.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 74% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 24 million from the Rs 64 million net cash flows seen during FY21.

GODAWARI POWER Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	9,688	13,303	37.3%
Cash Flow from Investing Activities	Rs m	-622	-10,956	-
Cash Flow from Financing Activities	Rs m	-9,001	-2,329	-
Net Cash Flow	Rs m	64	24	-62.7%

Current Valuations for GODAWARI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 107.6, an decline from the EPS of Rs 178.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 303.7, stands at 3.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	1,160.3	410.1
TTM Earnings per share	Rs	178.7	107.6
Diluted earnings per share	Rs	43.2	100.5
Price to Cash Flow	x	3.9	3.0
TTM P/E ratio	x	4.5	3.3
Price / Book Value ratio	x	0.7	1.4
Market Cap	Rs m	14,665	46,296
Dividends per share (Unadj.)	Rs	9.3	11.0

Ratio Analysis for GODAWARI POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY22, from 2.5x during FY21. 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 95.9x during FY22, from 9.0x during FY21. 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 42.8% during FY22, from 29.9% during FY22. 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 56.8% during FY22, from 36.7% during FY21. 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 29.4% during FY22, from 20.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.5	1.9
Debtors’ Days	Days	254	237
Interest coverage	x	9.0	95.9
Debt to equity ratio	x	0.4	0.0
Return on assets	%	20.9	29.4
Return on equity	%	29.9	42.8
Return on capital employed	%	36.7	56.8

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

GODAWARI POWER Share Price Performance

Over the last one year, GODAWARI POWER share price has moved down from Rs 312.7 to Rs 303.7, registering a loss of Rs 9.1 or around 2.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 18,769.1 (up 0.1%). Over the last one year it has moved down from 19,800.2 to 18,769.1, a loss of 1,031 points (down 5.2%).

Overall, the S&P BSE SENSEX is up 6.4% over the year.

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

Read: Latest Annual Report Analysis of GODAWARI POWER