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INOX WIND 2021-22 Annual Report Analysis

Sat, 17 Sep

INOX WIND has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

INOX WIND Income Statement Analysis

• Operating income during the year fell 12.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 50.0% in FY22 as against 27.0% in FY21.
• Depreciation charges increased by 0.7% and finance costs increased by 10.7% YoY, respectively.
• Other income grew by 9.5% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 43.2% in FY21 to 68.8% in FY22.

INOX WIND Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,107	6,246	-12.1%
Other income	Rs m	763	835	9.5%
Total Revenues	Rs m	7,870	7,081	-10.0%
Gross profit	Rs m	-1,918	-3,124	NA
Depreciation	Rs m	880	887	0.7%
Interest	Rs m	2,555	2,827	10.7%
Profit before tax	Rs m	-4,591	-6,002	NA
Tax	Rs m	-1,520	-1,704	NA
Profit after tax	Rs m	-3,071	-4,298	NA
Gross profit margin	%	-27.0	-50.0
Effective tax rate	%	33.1	28.4
Net profit margin	%	-43.2	-68.8

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INOX WIND Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 34 billion as compared to Rs 36 billion in FY21, thereby witnessing an decrease of -7.1%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY21, a fall of 2.2%.
• Current assets rose 4% and stood at Rs 32 billion, while fixed assets rose 10% and stood at Rs 22 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 54 billion as against Rs 51 billion during FY21, thereby witnessing a growth of 6%.

INOX WIND Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,160	18,285	38.9
Current Liabilities	Rs m	36,436	33,850	-7.1
Long-term Debt	Rs m	4,484	4,385	-2.2
Total Liabilities	Rs m	50,559	53,808	6.4
Current assets	Rs m	30,496	31,643	3.8
Fixed Assets	Rs m	20,064	22,164	10.5
Total Assets	Rs m	50,559	53,808	6.4

INOX WIND Cash Flow Statement Analysis

• INOX WIND's cash flow from operating activities (CFO) during FY22 stood at Rs -4 billion, an improvement of 278.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 160.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 billion, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -624 million from the Rs 1 billion net cash flows seen during FY21.

INOX WIND Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-1,116	-4,219	-
Cash Flow from Investing Activities	Rs m	-486	-1,267	-
Cash Flow from Financing Activities	Rs m	2,821	4,861	72.3%
Net Cash Flow	Rs m	1,219	-624	-

Current Valuations for INOX WIND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -19.4, an decline from the EPS of Rs -13.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 145.0, stands at -7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at -7.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	32.0	28.1
TTM Earnings per share	Rs	-13.8	-19.4
Diluted earnings per share	Rs	-11.1	-15.5
Price to Cash Flow	x	-8.9	-7.2
TTM P/E ratio	x	-6.9	-7.9
Price / Book Value ratio	x	0.8	1.3
Market Cap	Rs m	11,174	24,572
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INOX WIND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY22, from 0.8x during FY21. 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 -1.1x during FY22, from -0.8x during FY21. 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 -23.5% during FY22, from -23.3% during FY22. 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 -14.0% during FY22, from -11.5% during FY21. 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 -2.7% during FY22, from -1.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.8	0.9
Debtors’ Days	Days	5,384	6,271
Interest coverage	x	-0.8	-1.1
Debt to equity ratio	x	0.3	0.2
Return on assets	%	-1.0	-2.7
Return on equity	%	-23.3	-23.5
Return on capital employed	%	-11.5	-14.0

To see how INOX WIND has performed over the last 5 years, please visit here.

INOX WIND Share Price Performance

Over the last one year, INOX WIND share price has moved up from Rs 103.0 to Rs 145.0, registering a gain of Rs 42.0 or around 40.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 32,683.3 (down 2.3%). Over the last one year it has moved up from 26,041.4 to 32,683.3, a gain of 6,642 points (up 25.5%).

Overall, the S&P BSE SENSEX is up 0.2% over the year.

(To know more, check out historical annual results for INOX WIND and quarterly results for INOX WIND)

Read: Latest Annual Report Analysis of INOX WIND