GE POWER INDIA 2023-24 Annual Report Analysis

Tue, 2 Jul

GE POWER INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

GE POWER INDIA Income Statement Analysis

• Operating income during the year fell 9.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 12.1% in FY24 as against 17.8% in FY23.
• Depreciation charges decreased by 10.6% and finance costs increased by 24.7% YoY, respectively.
• Other income grew by 59.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 24.5% in FY23 to 10.5% in FY24.

GE POWER INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,958	16,248	-9.5%
Other income	Rs m	882	1,409	59.7%
Total Revenues	Rs m	18,840	17,657	-6.3%
Gross profit	Rs m	-3,204	-1,966	NA
Depreciation	Rs m	225	201	-10.6%
Interest	Rs m	766	955	24.7%
Profit before tax	Rs m	-3,313	-1,713	NA
Tax	Rs m	1,093	0	-100.0%
Profit after tax	Rs m	-4,406	-1,713	NA
Gross profit margin	%	-17.8	-12.1
Effective tax rate	%	-33.0	0.0
Net profit margin	%	-24.5	-10.5

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GE POWER INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 24 billion as compared to Rs 24 billion in FY23, thereby witnessing an decrease of -3.7%.
• Current assets fell 10% and stood at Rs 23 billion, while fixed assets fell 2% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 36 billion during FY23, thereby witnessing a fall of 8%.

GE POWER INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,325	688	-70.4
Current Liabilities	Rs m	24,491	23,587	-3.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	35,795	32,965	-7.9
Current assets	Rs m	25,492	22,877	-10.3
Fixed Assets	Rs m	10,303	10,088	-2.1
Total Assets	Rs m	35,795	32,965	-7.9

GE POWER INDIA Cash Flow Statement Analysis

• GE POWER INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 92.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -74 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -740 million from the Rs 479 million net cash flows seen during FY23.

GE POWER INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	898	1,730	92.7%
Cash Flow from Investing Activities	Rs m	62	-74	-
Cash Flow from Financing Activities	Rs m	-480	-2,396	-
Net Cash Flow	Rs m	479	-740	-

Current Valuations for GE POWER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -25.5, an improvement from the EPS of Rs -65.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 412.0, stands at -15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 40.3 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at -9.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	267.1	241.7
TTM Earnings per share	Rs	-65.5	-25.5
Diluted earnings per share	Rs	-65.5	-25.5
Price to Cash Flow	x	-1.6	-9.4
TTM P/E ratio	x	-1.5	-15.6
Price / Book Value ratio	x	4.2	20.7
Market Cap	Rs m	9,772	14,220
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GE POWER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.0x during FY23. 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 -0.8x during FY24, from -3.3x during FY23. 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 declined and down at -249.0% during FY24, from -189.5% during FY24. 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 declined and down at -110.2% during FY24, from -109.5% during FY23. 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 -2.3% during FY24, from -10.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	397	382
Interest coverage	x	-3.3	-0.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-10.2	-2.3
Return on equity	%	-189.5	-249.0
Return on capital employed	%	-109.5	-110.2

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

GE POWER INDIA Share Price Performance

Over the last one year, GE POWER INDIA share price has moved up from Rs 157.2 to Rs 412.0, registering a gain of Rs 254.9 or around 162.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,158.5 (up 0.6%). Over the last one year it has moved up from 40,725.8 to 73,158.5, a gain of 32,433 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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