GODAWARI POWER 2022-23 Annual Report Analysis

Thu, 31 Aug

GODAWARI 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.

GODAWARI POWER Income Statement Analysis

• Operating income during the year rose 6.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY23 as against 37.5% in FY22.
• Depreciation charges increased by 18.0% and finance costs increased by 3.6% YoY, respectively.
• Other income grew by 242.8% YoY.
• Net profit for the year declined by 46.5% YoY.
• Net profit margins during the year declined from 27.4% in FY22 to 13.8% in FY23.

GODAWARI POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	53,992	57,530	6.6%
Other income	Rs m	304	1,042	242.8%
Total Revenues	Rs m	54,296	58,573	7.9%
Gross profit	Rs m	20,270	11,223	-44.6%
Depreciation	Rs m	1,047	1,235	18.0%
Interest	Rs m	197	204	3.6%
Profit before tax	Rs m	19,331	10,826	-44.0%
Tax	Rs m	4,511	2,892	-35.9%
Profit after tax	Rs m	14,819	7,934	-46.5%
Gross profit margin	%	37.5	19.5
Effective tax rate	%	23.3	26.7
Net profit margin	%	27.4	13.8

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GODAWARI POWER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 9 billion as compared to Rs 12 billion in FY22, thereby witnessing an decrease of -24.1%.
• Long-term debt down at Rs 94 million as compared to Rs 102 million during FY22, a fall of 7.9%.
• Current assets fell 2% and stood at Rs 23 billion, while fixed assets rose 13% and stood at Rs 28 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 52 billion as against Rs 49 billion during FY22, thereby witnessing a growth of 6%.

GODAWARI POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	33,123	39,055	17.9
Current Liabilities	Rs m	12,491	9,477	-24.1
Long-term Debt	Rs m	102	94	-7.9
Total Liabilities	Rs m	48,899	51,594	5.5
Current assets	Rs m	23,789	23,227	-2.4
Fixed Assets	Rs m	25,110	28,366	13.0
Total Assets	Rs m	48,899	51,594	5.5

GODAWARI POWER Cash Flow Statement Analysis

• GODAWARI POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 billion from the Rs 24 million net cash flows seen during FY22.

GODAWARI 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	13,303	9,624	-27.7%
Cash Flow from Investing Activities	Rs m	-10,956	-2,288	-
Cash Flow from Financing Activities	Rs m	-2,329	-2,463	-
Net Cash Flow	Rs m	24	4,963	20,562.1%

Current Valuations for GODAWARI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.2, an decline from the EPS of Rs 112.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 592.7, stands at 11.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 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	410.1	443.5
TTM Earnings per share	Rs	112.6	61.2
Diluted earnings per share	Rs	109.0	58.4
Price to Cash Flow	x	3.3	5.1
TTM P/E ratio	x	3.8	11.8
Price / Book Value ratio	x	1.4	1.2
Market Cap	Rs m	46,296	46,743
Dividends per share (Unadj.)	Rs	11.0	4.0

Ratio Analysis for GODAWARI POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 1.9x 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 deteriorated and stood at 54.1x during FY23, from 99.2x 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 20.3% during FY23, from 44.7% 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 28.2% during FY23, from 58.8% 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 15.8% during FY23, from 30.7% 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	1.9	2.5
Debtors’ Days	Days	237	188
Interest coverage	x	99.2	54.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	30.7	15.8
Return on equity	%	44.7	20.3
Return on capital employed	%	58.8	28.2

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 up from Rs 295.1 to Rs 592.7, registering a gain of Rs 297.6 or around 100.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,751.0 (up 0.7%). Over the last one year it has moved up from 19,166.1 to 21,751.0, a gain of 2,585 points (up 13.5%).

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

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