SUZLON ENERGY 2022-23 Annual Report Analysis

Mon, 2 Oct

SUZLON 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.

SUZLON ENERGY Income Statement Analysis

• Operating income during the year fell 9.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 289.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 59.5% in FY23 as against 13.8% in FY22.
• Depreciation charges decreased by 0.1% and finance costs decreased by 42.7% YoY, respectively.
• Other income declined by 76.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.5% in FY22 to 48.4% in FY23.

SUZLON ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	65,818	59,705	-9.3%
Other income	Rs m	834	196	-76.5%
Total Revenues	Rs m	66,651	59,902	-10.1%
Gross profit	Rs m	9,114	35,525	289.8%
Depreciation	Rs m	2,598	2,597	-0.1%
Interest	Rs m	7,345	4,208	-42.7%
Profit before tax	Rs m	4	28,917	722,827.5%
Tax	Rs m	1,666	44	-97.3%
Profit after tax	Rs m	-1,662	28,873	NA
Gross profit margin	%	13.8	59.5
Effective tax rate	%	41,647.5	0.2
Net profit margin	%	-2.5	48.4

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SUZLON ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 27 billion as compared to Rs 42 billion in FY22, thereby witnessing an decrease of -36.2%.
• Long-term debt down at Rs 15 billion as compared to Rs 56 billion during FY22, a fall of 72.9%.
• Current assets fell 17% and stood at Rs 41 billion, while fixed assets fell 2% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 55 billion as against Rs 65 billion during FY22, thereby witnessing a fall of 14%.

SUZLON ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-37,576	10,991	NA
Current Liabilities	Rs m	42,344	27,008	-36.2
Long-term Debt	Rs m	55,924	15,173	-72.9
Total Liabilities	Rs m	64,574	55,232	-14.5
Current assets	Rs m	50,191	41,422	-17.5
Fixed Assets	Rs m	13,725	13,455	-2.0
Total Assets	Rs m	64,574	55,232	-14.5

SUZLON ENERGY Cash Flow Statement Analysis

• SUZLON ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 849 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY22.

SUZLON 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	13,019	4,667	-64.2%
Cash Flow from Investing Activities	Rs m	-184	849	-
Cash Flow from Financing Activities	Rs m	-10,450	-6,845	-
Net Cash Flow	Rs m	2,379	-1,331	-

Current Valuations for SUZLON ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 25.8, stands at 63.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 32.0 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 3.5 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	7.1	4.8
TTM Earnings per share	Rs	-0.2	2.3
Diluted earnings per share	Rs	-0.1	2.1
Price to Cash Flow	x	122.2	3.5
TTM P/E ratio	x	-68.9	63.3
Price / Book Value ratio	x	-2.1	10.0
Market Cap	Rs m	80,468	109,857
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUZLON ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.2x 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 7.9x during FY23, from 1.0x 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 262.7% during FY23, from 4.4% 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 126.6% during FY23, from 40.1% 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 59.9% during FY23, from 8.8% 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	1.2	1.5
Debtors’ Days	Days	8	7
Interest coverage	x	1.0	7.9
Debt to equity ratio	x	-1.5	1.4
Return on assets	%	8.8	59.9
Return on equity	%	4.4	262.7
Return on capital employed	%	40.1	126.6

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

SUZLON ENERGY Share Price Performance

Over the last one year, SUZLON ENERGY share price has moved up from Rs 8.0 to Rs 25.8, registering a gain of Rs 17.8 or around 222.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,025.7 (up 1.3%). Over the last one year it has moved up from 18,559.1 to 19,025.7, a gain of 467 points (up 2.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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