WAA SOLAR 2022-23 Annual Report Analysis

Wed, 13 Dec

WAA SOLAR 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.

WAA SOLAR Income Statement Analysis

• Operating income during the year rose 6.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 72.2% in FY23 as against 76.5% in FY22.
• Depreciation charges decreased by 1.1% and finance costs decreased by 14.9% YoY, respectively.
• Other income declined by 38.3% YoY.
• Net profit for the year grew by 31.8% YoY.
• Net profit margins during the year grew from 13.7% in FY22 to 16.9% in FY23.

WAA SOLAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	460	490	6.6%
Other income	Rs m	11	7	-38.3%
Total Revenues	Rs m	471	497	5.6%
Gross profit	Rs m	352	354	0.6%
Depreciation	Rs m	161	160	-1.1%
Interest	Rs m	118	101	-14.9%
Profit before tax	Rs m	83	101	21.1%
Tax	Rs m	20	18	-12.4%
Profit after tax	Rs m	63	83	31.8%
Gross profit margin	%	76.5	72.2
Effective tax rate	%	24.2	17.5
Net profit margin	%	13.7	16.9

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WAA SOLAR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 264 million as compared to Rs 255 million in FY22, thereby witnessing an increase of 3.4%.
• Long-term debt down at Rs 728 million as compared to Rs 941 million during FY22, a fall of 22.6%.
• Current assets rose 3% and stood at Rs 1 billion, while fixed assets fell 7% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 4%.

WAA SOLAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,721	1,802	4.7
Current Liabilities	Rs m	255	264	3.4
Long-term Debt	Rs m	941	728	-22.6
Total Liabilities	Rs m	3,103	2,985	-3.8
Current assets	Rs m	1,008	1,041	3.3
Fixed Assets	Rs m	2,095	1,944	-7.2
Total Assets	Rs m	3,103	2,985	-3.8

WAA SOLAR Cash Flow Statement Analysis

• WAA SOLAR's cash flow from operating activities (CFO) during FY23 stood at Rs 384 million, an improvement of 23.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -28 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -309 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 46 million from the Rs 13 million net cash flows seen during FY22.

WAA SOLAR 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	310	384	23.8%
Cash Flow from Investing Activities	Rs m	14	-28	-
Cash Flow from Financing Activities	Rs m	-311	-309	-
Net Cash Flow	Rs m	13	46	265.8%

Current Valuations for WAA SOLAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 95.3, stands at 15.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 2.5 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	34.7	37.0
TTM Earnings per share	Rs	4.7	6.3
Diluted earnings per share	Rs	4.7	6.3
Price to Cash Flow	x	2.4	2.5
TTM P/E ratio	x	8.6	15.2
Price / Book Value ratio	x	0.5	0.3
Market Cap	Rs m	866	608
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WAA SOLAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.9x during FY23, from 3.9x 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 2.0x during FY23, from 1.7x 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 4.6% during FY23, from 3.7% 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 8.0% during FY23, from 7.6% 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 6.2% during FY23, from 5.8% 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	3.9	3.9
Debtors’ Days	Days	1,052	903
Interest coverage	x	1.7	2.0
Debt to equity ratio	x	0.5	0.4
Return on assets	%	5.8	6.2
Return on equity	%	3.7	4.6
Return on capital employed	%	7.6	8.0

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

WAA SOLAR Share Price Performance

Over the last one year, WAA SOLAR share price has moved up from Rs 48.0 to Rs 95.3, registering a gain of Rs 47.3 or around 98.6%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 5,671.5 (up 1.2%). Over the last one year it has moved up from 4,539.9 to 5,671.5, a gain of 1,132 points (up 24.9%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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