INOX WIND ENERGY 2022-23 Annual Report Analysis

Tue, 3 Oct

INOX WIND ENERGY 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 ENERGY Income Statement Analysis

• Operating income during the year rose 23.3% 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 71.0% in FY23 as against 57.0% in FY22.
• Depreciation charges increased by 14.9% and finance costs increased by 25.4% YoY, respectively.
• Other income grew by 750.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 83.3% in FY22 to 90.6% in FY23.

INOX WIND ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,953	7,339	23.3%
Other income	Rs m	323	2,745	750.0%
Total Revenues	Rs m	6,276	10,084	60.7%
Gross profit	Rs m	-3,395	-5,212	NA
Depreciation	Rs m	914	1,051	14.9%
Interest	Rs m	2,717	3,407	25.4%
Profit before tax	Rs m	-6,703	-6,925	NA
Tax	Rs m	-1,747	-278	NA
Profit after tax	Rs m	-4,956	-6,647	NA
Gross profit margin	%	-57.0	-71.0
Effective tax rate	%	26.1	4.0
Net profit margin	%	-83.3	-90.6

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INOX WIND ENERGY 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 -19.1%.
• Long-term debt stood at Rs 9 billion as compared to Rs 4 billion during FY22, a growth of 102.4%.
• Current assets fell 5% and stood at Rs 31 billion, while fixed assets rose 7% and stood at Rs 25 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 56 billion as against Rs 56 billion during FY22, thereby witnessing a fall of 0%.

INOX WIND ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,566	10,513	-27.8
Current Liabilities	Rs m	34,494	27,889	-19.1
Long-term Debt	Rs m	4,385	8,876	102.4
Total Liabilities	Rs m	55,875	55,808	-0.1
Current assets	Rs m	32,595	31,048	-4.7
Fixed Assets	Rs m	23,190	24,760	6.8
Total Assets	Rs m	55,875	55,808	-0.1

INOX WIND ENERGY Cash Flow Statement Analysis

• INOX WIND ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs -11 billion, an improvement of 186.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 8 billion, an improvement of 140% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -449 million from the Rs -628 million net cash flows seen during FY22.

INOX WIND ENERGY 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	-3,850	-11,028	-
Cash Flow from Investing Activities	Rs m	-116	2,580	-
Cash Flow from Financing Activities	Rs m	3,337	7,999	139.7%
Net Cash Flow	Rs m	-628	-449	-

Current Valuations for INOX WIND ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -592.4, an decline from the EPS of Rs -450.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,450.0, stands at -4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at -1.7 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	541.7	654.1
TTM Earnings per share	Rs	-450.9	-592.4
Diluted earnings per share	Rs	-411.4	-551.7
Price to Cash Flow	x	-2.1	-1.7
TTM P/E ratio	x	-2.6	-4.9
Price / Book Value ratio	x	0.4	0.9
Market Cap	Rs m	6,486	9,347
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INOX WIND ENERGY

• 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 -1.5x 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 -63.2% during FY23, from -34.0% 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 -18.1% during FY23, from -21.0% 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 -5.8% during FY23, from -4.0% 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	6,589	4,114
Interest coverage	x	-1.5	-1.0
Debt to equity ratio	x	0.3	0.8
Return on assets	%	-4.0	-5.8
Return on equity	%	-34.0	-63.2
Return on capital employed	%	-21.0	-18.1

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

INOX WIND ENERGY Share Price Performance

Over the last one year, INOX WIND ENERGY share price has moved up from Rs 964.4 to Rs 2,450.0, registering a gain of Rs 1,485.6 or around 154.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,804.9 (up 0.2%). Over the last one year it has moved up from 30,780.4 to 47,804.9, a gain of 17,024 points (up 55.3%).

Overall, the S&P BSE SENSEX is up 15.7% over the year.

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