WAAREE RENEWABLE TECH 2022-23 Annual Report Analysis

Thu, 21 Sep

WAAREE RENEWABLE TECH 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.

WAAREE RENEWABLE TECH Income Statement Analysis

• Operating income during the year rose 117.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 256.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY23 as against 14.6% in FY22.
• Depreciation charges decreased by 19.6% and finance costs decreased by 23.6% YoY, respectively.
• Other income declined by 81.7% YoY.
• Net profit for the year grew by 522.3% YoY.
• Net profit margins during the year grew from 5.5% in FY22 to 15.8% in FY23.

WAAREE RENEWABLE TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,615	3,510	117.3%
Other income	Rs m	83	15	-81.7%
Total Revenues	Rs m	1,698	3,525	107.6%
Gross profit	Rs m	235	837	256.3%
Depreciation	Rs m	37	30	-19.6%
Interest	Rs m	69	53	-23.6%
Profit before tax	Rs m	212	770	263.0%
Tax	Rs m	123	217	75.9%
Profit after tax	Rs m	89	553	522.3%
Gross profit margin	%	14.6	23.9
Effective tax rate	%	58.1	28.2
Net profit margin	%	5.5	15.8

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WAAREE RENEWABLE TECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 906 million in FY22, thereby witnessing an increase of 67.3%.
• Long-term debt down at Rs 305 million as compared to Rs 330 million during FY22, a fall of 7.6%.
• Current assets rose 37% and stood at Rs 1 billion, while fixed assets rose 108% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 68%.

WAAREE RENEWABLE TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	299	843	181.9
Current Liabilities	Rs m	906	1,515	67.3
Long-term Debt	Rs m	330	305	-7.6
Total Liabilities	Rs m	1,678	2,827	68.5
Current assets	Rs m	932	1,276	36.9
Fixed Assets	Rs m	746	1,551	107.8
Total Assets	Rs m	1,678	2,827	68.5

WAAREE RENEWABLE TECH Cash Flow Statement Analysis

• WAAREE RENEWABLE TECH's cash flow from operating activities (CFO) during FY23 stood at Rs 651 million, an improvement of 53.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -660 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -92 million, an improvement of 77% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -100 million from the Rs 120 million net cash flows seen during FY22.

WAAREE RENEWABLE TECH 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	426	651	53.1%
Cash Flow from Investing Activities	Rs m	94	-660	-
Cash Flow from Financing Activities	Rs m	-400	-92	-
Net Cash Flow	Rs m	120	-100	-

Current Valuations for WAAREE RENEWABLE TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an improvement from the EPS of Rs 4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,258.0, stands at 46.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 31.1 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	77.6	168.6
TTM Earnings per share	Rs	4.3	26.6
Diluted earnings per share	Rs	4.3	26.6
Price to Cash Flow	x	47.1	19.7
TTM P/E ratio	x	66.5	46.4
Price / Book Value ratio	x	17.9	13.6
Market Cap	Rs m	5,342	11,469
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for WAAREE RENEWABLE TECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY23, from 1.0x 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 15.5x during FY23, from 4.1x 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 65.6% during FY23, from 29.7% 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 71.7% during FY23, from 44.8% 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 21.5% during FY23, from 9.4% 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	1.0	0.8
Debtors’ Days	Days	1,052	638
Interest coverage	x	4.1	15.5
Debt to equity ratio	x	1.1	0.4
Return on assets	%	9.4	21.5
Return on equity	%	29.7	65.6
Return on capital employed	%	44.8	71.7

To see how WAAREE RENEWABLE TECH has performed over the last 5 years, please visit here.

WAAREE RENEWABLE TECH Share Price Performance

Over the last one year, WAAREE RENEWABLE TECH share price has moved up from Rs 449.2 to Rs 1,258.0, registering a gain of Rs 808.8 or around 180.1%.

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

(To know more, check out historical annual results for WAAREE RENEWABLE TECH and quarterly results for WAAREE RENEWABLE TECH)