TD POWER 2022-23 Annual Report Analysis

Mon, 14 Aug

TD POWER 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.

TD POWER Income Statement Analysis

• Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.5% in FY23 as against 13.1% in FY22.
• Depreciation charges decreased by 6.1% and finance costs decreased by 36.5% YoY, respectively.
• Other income grew by 18.2% YoY.
• Net profit for the year grew by 37.3% YoY.
• Net profit margins during the year grew from 8.8% in FY22 to 11.1% in FY23.

TD POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,974	8,723	9.4%
Other income	Rs m	167	198	18.2%
Total Revenues	Rs m	8,141	8,921	9.6%
Gross profit	Rs m	1,045	1,350	29.2%
Depreciation	Rs m	220	207	-6.1%
Interest	Rs m	71	45	-36.5%
Profit before tax	Rs m	921	1,295	40.7%
Tax	Rs m	216	327	51.7%
Profit after tax	Rs m	705	968	37.3%
Gross profit margin	%	13.1	15.5
Effective tax rate	%	23.4	25.3
Net profit margin	%	8.8	11.1

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TD POWER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -21.0%.
• Current assets rose 0% and stood at Rs 7 billion, while fixed assets fell 2% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 0%.

TD POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,272	6,041	14.6
Current Liabilities	Rs m	3,666	2,896	-21.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,067	9,032	-0.4
Current assets	Rs m	6,981	6,984	0.0
Fixed Assets	Rs m	2,085	2,048	-1.8
Total Assets	Rs m	9,067	9,032	-0.4

TD POWER Cash Flow Statement Analysis

• TD POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 886 million, an improvement of 712.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -104 million, an improvement of 98.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -891 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -133 million from the Rs 79 million net cash flows seen during FY22.

TD POWER 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	109	886	712.0%
Cash Flow from Investing Activities	Rs m	-52	-104	-
Cash Flow from Financing Activities	Rs m	109	-891	-
Net Cash Flow	Rs m	79	-133	-

Current Valuations for TD POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an decline from the EPS of Rs 22.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 243.9, stands at 37.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.0 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	256.4	55.9
TTM Earnings per share	Rs	22.7	6.2
Diluted earnings per share	Rs	4.5	6.2
Price to Cash Flow	x	11.6	16.0
TTM P/E ratio	x	15.2	37.4
Price / Book Value ratio	x	1.9	3.1
Market Cap	Rs m	9,916	18,838
Dividends per share (Unadj.)	Rs	0.7	1.0

Ratio Analysis for TD POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 1.9x 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 29.8x during FY23, from 14.0x 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 16.0% during FY23, from 13.4% 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 22.2% during FY23, from 18.8% 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 11.2% during FY23, from 8.6% 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	1.9	2.4
Debtors’ Days	Days	1,104	1,126
Interest coverage	x	14.0	29.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.6	11.2
Return on equity	%	13.4	16.0
Return on capital employed	%	18.8	22.2

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

TD POWER Share Price Performance

Over the last one year, TD POWER share price has moved up from Rs 115.1 to Rs 243.9, registering a gain of Rs 128.8 or around 111.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,180.1 (down 1.4%). Over the last one year it has moved down from 4,858.0 to 4,180.1, a loss of 678 points (down 14.0%).

Overall, the S&P BSE SENSEX is up 10.5% over the year.

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