INDRAPRASTHA GAS 2022-23 Annual Report Analysis

Thu, 21 Sep

INDRAPRASTHA GAS 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.

INDRAPRASTHA GAS Income Statement Analysis

• Operating income during the year rose 83.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.2% in FY23 as against 30.5% in FY22.
• Depreciation charges increased by 14.6% and finance costs increased by 8.4% YoY, respectively.
• Other income grew by 14.9% YoY.
• Net profit for the year grew by 9.1% YoY.
• Net profit margins during the year declined from 21.7% in FY22 to 12.9% in FY23.

INDRAPRASTHA GAS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	69,352	126,887	83.0%
Other income	Rs m	1,766	2,029	14.9%
Total Revenues	Rs m	71,118	128,916	81.3%
Gross profit	Rs m	21,184	23,097	9.0%
Depreciation	Rs m	3,171	3,634	14.6%
Interest	Rs m	248	268	8.4%
Profit before tax	Rs m	19,532	21,224	8.7%
Tax	Rs m	4,509	4,827	7.0%
Profit after tax	Rs m	15,023	16,397	9.1%
Gross profit margin	%	30.5	18.2
Effective tax rate	%	23.1	22.7
Net profit margin	%	21.7	12.9

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INDRAPRASTHA GAS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 42 billion as compared to Rs 31 billion in FY22, thereby witnessing an increase of 36.3%.
• Current assets rose 12% and stood at Rs 42 billion, while fixed assets rose 14% and stood at Rs 84 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 126 billion as against Rs 111 billion during FY22, thereby witnessing a growth of 14%.

INDRAPRASTHA GAS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	75,860	79,312	4.6
Current Liabilities	Rs m	31,077	42,346	36.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	111,022	126,206	13.7
Current assets	Rs m	37,627	42,279	12.4
Fixed Assets	Rs m	73,395	83,927	14.3
Total Assets	Rs m	111,022	126,206	13.7

INDRAPRASTHA GAS Cash Flow Statement Analysis

• INDRAPRASTHA GAS's cash flow from operating activities (CFO) during FY23 stood at Rs 22 billion, an improvement of 17.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -14 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 306 million from the Rs -153 million net cash flows seen during FY22.

INDRAPRASTHA GAS 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	18,979	22,306	17.5%
Cash Flow from Investing Activities	Rs m	-15,848	-8,414	-
Cash Flow from Financing Activities	Rs m	-3,285	-13,586	-
Net Cash Flow	Rs m	-153	306	-

Current Valuations for INDRAPRASTHA GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.4, an improvement from the EPS of Rs 21.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 456.0, stands at 22.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.8 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	99.1	181.3
TTM Earnings per share	Rs	21.5	23.4
Diluted earnings per share	Rs	21.5	23.4
Price to Cash Flow	x	14.3	13.8
TTM P/E ratio	x	20.4	22.7
Price / Book Value ratio	x	4.3	3.5
Market Cap	Rs m	324,135	276,535
Dividends per share (Unadj.)	Rs	5.5	13.0

Ratio Analysis for INDRAPRASTHA GAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.2x 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 80.1x during FY23, from 79.9x 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 improved and stood at 20.7% during FY23, from 19.8% 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 improved and stood at 27.1% during FY23, from 26.1% 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 declined and down at 13.2% during FY23, from 13.8% 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	1.2	1.0
Debtors’ Days	Days	3	3
Interest coverage	x	79.9	80.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.8	13.2
Return on equity	%	19.8	20.7
Return on capital employed	%	26.1	27.1

To see how INDRAPRASTHA GAS has performed over the last 5 years, please visit here.

INDRAPRASTHA GAS Share Price Performance

Over the last one year, INDRAPRASTHA GAS share price has moved up from Rs 419.7 to Rs 456.0, registering a gain of Rs 36.4 or around 8.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,092.2 (down 0.3%). Over the last one year it has moved down from 19,418.1 to 19,092.2, a loss of 326 points (down 1.7%).

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for INDRAPRASTHA GAS and quarterly results for INDRAPRASTHA GAS)