INOX WIND 2022-23 Annual Report Analysis

Thu, 21 Sep

INOX WIND 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.

INOX WIND Income Statement Analysis

• Operating income during the year rose 18.0% 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 70.1% in FY23 as against 50.0% in FY22.
• Depreciation charges increased by 19.7% and finance costs increased by 20.5% YoY, respectively.
• Other income grew by 794.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 77.3% in FY22 to 91.0% in FY23.

INOX WIND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,246	7,370	18.0%
Other income	Rs m	307	2,745	794.2%
Total Revenues	Rs m	6,553	10,115	54.3%
Gross profit	Rs m	-3,124	-5,168	NA
Depreciation	Rs m	887	1,062	19.7%
Interest	Rs m	2,827	3,407	20.5%
Profit before tax	Rs m	-6,530	-6,892	NA
Tax	Rs m	-1,704	-185	NA
Profit after tax	Rs m	-4,826	-6,707	NA
Gross profit margin	%	-50.0	-70.1
Effective tax rate	%	26.1	2.7
Net profit margin	%	-77.3	-91.0

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INOX WIND Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 28 billion as compared to Rs 34 billion in FY22, thereby witnessing an decrease of -16.1%.
• Long-term debt stood at Rs 9 billion as compared to Rs 4 billion during FY22, a growth of 102.4%.
• Current assets fell 2% and stood at Rs 31 billion, while fixed assets rose 8% and stood at Rs 24 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 55 billion as against Rs 54 billion during FY22, thereby witnessing a growth of 2%.

INOX WIND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,285	17,363	-5.0
Current Liabilities	Rs m	33,850	28,396	-16.1
Long-term Debt	Rs m	4,385	8,876	102.4
Total Liabilities	Rs m	53,808	54,803	1.9
Current assets	Rs m	31,643	30,875	-2.4
Fixed Assets	Rs m	22,164	23,929	8.0
Total Assets	Rs m	53,808	54,803	1.9

INOX WIND Cash Flow Statement Analysis

• INOX WIND's cash flow from operating activities (CFO) during FY23 stood at Rs -11 billion, an improvement of 131.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 8 billion, an improvement of 70% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -454 million from the Rs -624 million net cash flows seen during FY22.

INOX WIND 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	-4,748	-11,000	-
Cash Flow from Investing Activities	Rs m	-739	2,306	-
Cash Flow from Financing Activities	Rs m	4,861	8,240	69.5%
Net Cash Flow	Rs m	-624	-454	-

Current Valuations for INOX WIND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -20.6, an improvement from the EPS of Rs -21.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 196.1, stands at -10.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 8.7 times.
• The company's price to cash flow (P/CF) ratio stood at -6.8 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	28.1	22.6
TTM Earnings per share	Rs	-21.7	-20.6
Diluted earnings per share	Rs	-14.8	-20.6
Price to Cash Flow	x	-9.2	-6.8
TTM P/E ratio	x	-8.4	-10.6
Price / Book Value ratio	x	1.3	2.2
Market Cap	Rs m	24,572	38,429
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 1.1x during FY23, from 0.9x 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 -1.0x during FY23, from -1.3x 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 -38.6% during FY23, from -26.4% 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 -13.3% during FY23, from -16.3% 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 -6.0% during FY23, from -3.7% 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	0.9	1.1
Debtors’ Days	Days	6,271	4,096
Interest coverage	x	-1.3	-1.0
Debt to equity ratio	x	0.2	0.5
Return on assets	%	-3.7	-6.0
Return on equity	%	-26.4	-38.6
Return on capital employed	%	-16.3	-13.3

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 139.2 to Rs 196.1, registering a gain of Rs 56.9 or around 40.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 46,574.9 (down 0.7%). Over the last one year it has moved up from 32,293.6 to 46,574.9, a gain of 14,281 points (up 44.2%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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