INDIAN ENERGY EXCHANGE 2020-21 Annual Report Analysis

Wed, 31 Mar

INDIAN ENERGY EXCHANGE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

INDIAN ENERGY EXCHANGE Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 78.9% in FY21 as against 78.6% in FY20.
• Depreciation charges increased by 8.3% and finance costs increased by 31.2% YoY, respectively.
• Other income declined by 4.7% YoY.
• Net profit for the year grew by 16.9% YoY.
• Net profit margins during the year declined from 68.3% in FY20 to 64.6% in FY21.

INDIAN ENERGY EXCHANGE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,571	3,179	23.6%
Other income	Rs m	403	384	-4.7%
Total Revenues	Rs m	2,974	3,562	19.8%
Gross profit	Rs m	2,022	2,506	24.0%
Depreciation	Rs m	152	165	8.3%
Interest	Rs m	16	21	31.2%
Profit before tax	Rs m	2,256	2,704	19.9%
Tax	Rs m	499	650	30.3%
Profit after tax	Rs m	1,757	2,054	16.9%
Gross profit margin	%	78.6	78.9
Effective tax rate	%	22.1	24.0
Net profit margin	%	68.3	64.6

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INDIAN ENERGY EXCHANGE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 62.4%.
• Current assets rose 114% and stood at Rs 7 billion, while fixed assets fell 24% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 47%.

INDIAN ENERGY EXCHANGE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,792	5,146	35.7
Current Liabilities	Rs m	2,354	3,823	62.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,673	9,818	47.1
Current assets	Rs m	3,446	7,369	113.8
Fixed Assets	Rs m	3,227	2,449	-24.1
Total Assets	Rs m	6,673	9,818	47.1

INDIAN ENERGY EXCHANGE Cash Flow Statement Analysis

• INDIAN ENERGY EXCHANGE 's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 143.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 7,667.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -771 million, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 332 million from the Rs -380 million net cash flows seen during FY20.

INDIAN ENERGY EXCHANGE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,260	3,064	143.1%
Cash Flow from Investing Activities	Rs m	-25	-1,961	-
Cash Flow from Financing Activities	Rs m	-1,614	-771	-
Net Cash Flow	Rs m	-380	332	-

Current Valuations for INDIAN ENERGY EXCHANGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 332.9, stands at 145.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 58.1 times, while the price to sales ratio stands at 31.3 times.
• The company's price to cash flow (P/CF) ratio stood at 34.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	8.6	10.6
TTM Earnings per share	Rs	5.9	6.9
Diluted earnings per share	Rs	2.0	2.3
Price to Cash Flow	x	60.2	34.7
TTM P/E ratio	x	66.9	145.6
Price / Book Value ratio	x	12.4	15.0
Market Cap	Rs m	46,904	77,082
Dividends per share (Unadj.)	Rs	2.5	4.0

Ratio Analysis for INDIAN ENERGY EXCHANGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.5x during FY20. 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 132.6x during FY21, from 145.1x during FY20. 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 39.9% during FY21, from 46.3% during FY21. 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 53.0% during FY21, from 59.9% during FY20. 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 21.1% during FY21, from 26.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.5	1.9
Debtors’ Days	Days	3	37
Interest coverage	x	145.1	132.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	26.6	21.1
Return on equity	%	46.3	39.9
Return on capital employed	%	59.9	53.0

To see how INDIAN ENERGY EXCHANGE has performed over the last 5 years, please visit here.

INDIAN ENERGY EXCHANGE Share Price Performance

Over the last one year, INDIAN ENERGY EXCHANGE share price has moved up from Rs 127.9 to Rs 332.9, registering a gain of Rs 205.0 or around 160.3%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for INDIAN ENERGY EXCHANGE and quarterly results for INDIAN ENERGY EXCHANGE )

Read: Latest Annual Report Analysis of INDIAN ENERGY EXCHANGE