SJVN 2022-23 Annual Report Analysis

Fri, 31 Mar

SJVN 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.

SJVN Income Statement Analysis

• Operating income during the year rose 21.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 75.8% in FY23 as against 71.5% in FY22.
• Depreciation charges decreased by 2.0% and finance costs increased by 99.1% YoY, respectively.
• Other income grew by 58.0% YoY.
• Net profit for the year grew by 37.3% YoY.
• Net profit margins during the year grew from 41.0% in FY22 to 46.3% in FY23.

SJVN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	24,170	29,384	21.6%
Other income	Rs m	2,178	3,442	58.0%
Total Revenues	Rs m	26,348	32,825	24.6%
Gross profit	Rs m	17,280	22,287	29.0%
Depreciation	Rs m	4,043	3,964	-2.0%
Interest	Rs m	2,255	4,491	99.1%
Profit before tax	Rs m	13,160	17,274	31.3%
Tax	Rs m	3,262	3,681	12.8%
Profit after tax	Rs m	9,898	13,593	37.3%
Gross profit margin	%	71.5	75.8
Effective tax rate	%	24.8	21.3
Net profit margin	%	41.0	46.3

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SJVN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 43 billion as compared to Rs 26 billion in FY22, thereby witnessing an increase of 62.6%.
• Long-term debt stood at Rs 132 billion as compared to Rs 62 billion during FY22, a growth of 114.7%.
• Current assets rose 17% and stood at Rs 48 billion, while fixed assets rose 36% and stood at Rs 275 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 324 billion as against Rs 244 billion during FY22, thereby witnessing a growth of 33%.

SJVN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	131,703	138,595	5.2
Current Liabilities	Rs m	26,248	42,690	62.6
Long-term Debt	Rs m	61,702	132,479	114.7
Total Liabilities	Rs m	243,652	323,518	32.8
Current assets	Rs m	41,031	48,177	17.4
Fixed Assets	Rs m	202,461	275,179	35.9
Total Assets	Rs m	243,652	323,518	32.8

SJVN Cash Flow Statement Analysis

• SJVN's cash flow from operating activities (CFO) during FY23 stood at Rs 16 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -69 billion, an improvement of 12.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 56 billion, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs -3 billion net cash flows seen during FY22.

SJVN 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	21,377	16,319	-23.7%
Cash Flow from Investing Activities	Rs m	-61,317	-68,766	-
Cash Flow from Financing Activities	Rs m	36,694	55,592	51.5%
Net Cash Flow	Rs m	-3,246	3,145	-

Current Valuations for SJVN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 33.3, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	6.2	7.5
TTM Earnings per share	Rs	2.5	3.5
Diluted earnings per share	Rs	2.5	3.5
Price to Cash Flow	x	7.7	7.6
TTM P/E ratio	x	10.5	9.6
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	114,554	133,024
Dividends per share (Unadj.)	Rs	1.7	1.8

Ratio Analysis for SJVN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.6x 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 deteriorated and stood at 4.8x during FY23, from 6.8x 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 9.8% during FY23, from 7.5% 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 8.0% during FY23, from 8.0% 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 improved and stood at 5.6% during FY23, from 5.0% 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	1.6	1.1
Debtors’ Days	Days	868	344
Interest coverage	x	6.8	4.8
Debt to equity ratio	x	0.5	1.0
Return on assets	%	5.0	5.6
Return on equity	%	7.5	9.8
Return on capital employed	%	8.0	8.0

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

SJVN Share Price Performance

Over the last one year, SJVN share price has moved up from Rs 27.5 to Rs 33.3, registering a gain of Rs 5.8 or around 21.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,605.8 (up 0.5%). Over the last one year it has moved down from 4,043.6 to 3,605.8, a loss of 438 points (down 10.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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