INDIAN ENERGY EXCHANGE 2022-23 Annual Report Analysis

Tue, 15 Aug

INDIAN ENERGY EXCHANGE 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.

INDIAN ENERGY EXCHANGE Income Statement Analysis

• Operating income during the year fell 7.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 87.2% in FY23 as against 86.1% in FY22.
• Depreciation charges increased by 7.9% and finance costs increased by 24.4% YoY, respectively.
• Other income grew by 37.3% YoY.
• Net profit for the year declined by 0.9% YoY.
• Net profit margins during the year grew from 71.6% in FY22 to 76.3% in FY23.

INDIAN ENERGY EXCHANGE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,310	4,009	-7.0%
Other income	Rs m	534	732	37.3%
Total Revenues	Rs m	4,844	4,741	-2.1%
Gross profit	Rs m	3,711	3,496	-5.8%
Depreciation	Rs m	172	186	7.9%
Interest	Rs m	20	25	24.4%
Profit before tax	Rs m	4,052	4,018	-0.8%
Tax	Rs m	966	959	-0.7%
Profit after tax	Rs m	3,086	3,059	-0.9%
Gross profit margin	%	86.1	87.2
Effective tax rate	%	23.8	23.9
Net profit margin	%	71.6	76.3

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INDIAN ENERGY EXCHANGE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 6 billion as compared to Rs 10 billion in FY22, thereby witnessing an decrease of -36.0%.
• Current assets fell 48% and stood at Rs 8 billion, while fixed assets rose 206% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 17 billion during FY22, thereby witnessing a fall of 14%.

INDIAN ENERGY EXCHANGE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,891	7,829	13.6
Current Liabilities	Rs m	9,537	6,104	-36.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	16,962	14,534	-14.3
Current assets	Rs m	14,732	7,717	-47.6
Fixed Assets	Rs m	2,230	6,817	205.8
Total Assets	Rs m	16,962	14,534	-14.3

INDIAN ENERGY EXCHANGE Cash Flow Statement Analysis

• INDIAN ENERGY EXCHANGE 's cash flow from operating activities (CFO) during FY23 stood at Rs -226 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 703 million 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 -2 billion from the Rs 2 billion net cash flows seen during FY22.

INDIAN ENERGY EXCHANGE 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	7,623	-226	-
Cash Flow from Investing Activities	Rs m	-4,484	703	-
Cash Flow from Financing Activities	Rs m	-1,358	-2,148	-
Net Cash Flow	Rs m	1,781	-1,671	-

Current Valuations for INDIAN ENERGY EXCHANGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an decline from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 126.3, stands at 37.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.4 times, while the price to sales ratio stands at 28.0 times.
• The company's price to cash flow (P/CF) ratio stood at 51.7 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	4.8	4.5
TTM Earnings per share	Rs	3.4	3.4
Diluted earnings per share	Rs	3.5	3.4
Price to Cash Flow	x	61.4	51.7
TTM P/E ratio	x	65.2	37.7
Price / Book Value ratio	x	27.7	21.4
Market Cap	Rs m	190,850	167,731
Dividends per share (Unadj.)	Rs	2.0	1.0

Ratio Analysis for INDIAN ENERGY EXCHANGE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.5x 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 164.5x during FY23, from 206.2x 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 39.1% during FY23, from 44.8% 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 51.6% during FY23, from 59.1% 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 21.2% during FY23, from 18.3% 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	1.5	1.3
Debtors’ Days	Days	740	64
Interest coverage	x	206.2	164.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.3	21.2
Return on equity	%	44.8	39.1
Return on capital employed	%	59.1	51.6

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 down from Rs 165.1 to Rs 126.3, registering a loss of Rs 38.9 or around 23.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,198.7 (down 0.9%). Over the last one year it has moved down from 4,858.0 to 4,198.7, a loss of 659 points (down 13.6%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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