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GVK POWER & INFRA 2022-23 Annual Report Analysis

Mon, 14 Aug

GVK POWER & INFRA 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.

GVK POWER & INFRA Income Statement Analysis

• Operating income during the year rose 147.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 472.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 214.9% in FY23 as against 92.7% in FY22.
• Depreciation charges increased by 193.6% and finance costs increased by 155.2% YoY, respectively.
• Other income grew by 92.8% YoY.
• Net profit for the year grew by 1463.0% YoY.
• Net profit margins during the year grew from 22.9% in FY22 to 144.8% in FY23.

GVK POWER & INFRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,583	21,204	147.1%
Other income	Rs m	305	587	92.8%
Total Revenues	Rs m	8,887	21,791	145.2%
Gross profit	Rs m	7,957	45,577	472.8%
Depreciation	Rs m	1,362	3,997	193.6%
Interest	Rs m	4,207	10,737	155.2%
Profit before tax	Rs m	2,693	31,429	1,067.2%
Tax	Rs m	728	718	-1.3%
Profit after tax	Rs m	1,965	30,711	1,463.0%
Gross profit margin	%	92.7	214.9
Effective tax rate	%	27.0	2.3
Net profit margin	%	22.9	144.8

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GVK POWER & INFRA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 40 billion as compared to Rs 111 billion in FY22, thereby witnessing an decrease of -63.6%.
• Long-term debt down at Rs 31 billion as compared to Rs 35 billion during FY22, a fall of 12.5%.
• Current assets fell 14% and stood at Rs 26 billion, while fixed assets fell 42% and stood at Rs 50 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 76 billion as against Rs 115 billion during FY22, thereby witnessing a fall of 34%.

GVK POWER & INFRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-38,395	-11,513	NA
Current Liabilities	Rs m	111,048	40,387	-63.6
Long-term Debt	Rs m	35,108	30,736	-12.5
Total Liabilities	Rs m	115,143	75,610	-34.3
Current assets	Rs m	29,993	25,885	-13.7
Fixed Assets	Rs m	85,150	49,725	-41.6
Total Assets	Rs m	115,143	75,610	-34.3

GVK POWER & INFRA Cash Flow Statement Analysis

• GVK POWER & INFRA's cash flow from operating activities (CFO) during FY23 stood at Rs 16 billion 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 -15 billion, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -508 million from the Rs 900 million net cash flows seen during FY22.

GVK POWER & INFRA 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	-42,542	16,205	-
Cash Flow from Investing Activities	Rs m	157,113	-1,016	-
Cash Flow from Financing Activities	Rs m	-117,714	-14,839	-
Net Cash Flow	Rs m	900	-508	-

Current Valuations for GVK POWER & INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.2, stands at 0.2 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 0.2 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	5.4	13.4
TTM Earnings per share	Rs	1.2	19.4
Diluted earnings per share	Rs	1.2	19.4
Price to Cash Flow	x	1.3	0.2
TTM P/E ratio	x	2.2	0.2
Price / Book Value ratio	x	-0.1	-0.5
Market Cap	Rs m	3,601	6,222
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GVK POWER & INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY23, from 0.3x 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 improved and stood at 3.9x during FY23, from 1.6x 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 declined and down at -266.7% during FY23, from -5.1% 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 improved and stood at 219.4% during FY23, from -209.9% 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 54.8% during FY23, from 5.4% 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	0.3	0.6
Debtors’ Days	Days	1,987	83
Interest coverage	x	1.6	3.9
Debt to equity ratio	x	-0.9	-2.7
Return on assets	%	5.4	54.8
Return on equity	%	-5.1	-266.7
Return on capital employed	%	-209.9	219.4

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

GVK POWER & INFRA Share Price Performance

Over the last one year, GVK POWER & INFRA share price has moved down from Rs 5.6 to Rs 4.2, registering a loss of Rs 1.4 or around 25.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,179.3 (down 1.4%). Over the last one year it has moved down from 4,858.0 to 4,179.3, a loss of 679 points (down 14.0%).

Overall, the S&P BSE SENSEX is up 10.5% over the year.

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