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ACME SOLAR HOLDINGS LTD. 2023-24 Annual Report Analysis

Tue, 19 Nov

ACME SOLAR HOLDINGS LTD. 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.

ACME SOLAR HOLDINGS LTD. Income Statement Analysis

• Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 139.3% in FY24 as against 93.6% in FY23.
• Depreciation charges decreased by 36.4% and finance costs decreased by 5.2% YoY, respectively.
• Other income grew by 121.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.2% in FY23 to 52.9% in FY24.

ACME SOLAR HOLDINGS LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,949	13,193	1.9%
Other income	Rs m	665	1,470	121.2%
Total Revenues	Rs m	13,614	14,663	7.7%
Gross profit	Rs m	12,121	18,379	51.6%
Depreciation	Rs m	4,848	3,081	-36.4%
Interest	Rs m	8,092	7,673	-5.2%
Profit before tax	Rs m	-154	9,094	NA
Tax	Rs m	-122	2,116	NA
Profit after tax	Rs m	-32	6,978	NA
Gross profit margin	%	93.6	139.3
Effective tax rate	%	79.4	23.3
Net profit margin	%	-0.2	52.9

For Investors: Our Big Prediction

ACME SOLAR HOLDINGS LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 14 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 47.7%.
• Long-term debt down at Rs 77 billion as compared to Rs 81 billion during FY23, a fall of 5.0%.
• Current assets rose 16% and stood at Rs 31 billion, while fixed assets rose 9% and stood at Rs 101 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 132 billion as against Rs 119 billion during FY23, thereby witnessing a growth of 11%.

ACME SOLAR HOLDINGS LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,006	25,909	36.3
Current Liabilities	Rs m	9,696	14,321	47.7
Long-term Debt	Rs m	80,993	76,964	-5.0
Total Liabilities	Rs m	119,394	132,070	10.6
Current assets	Rs m	27,021	31,427	16.3
Fixed Assets	Rs m	92,373	100,516	8.8
Total Assets	Rs m	119,394	132,070	10.6

ACME SOLAR HOLDINGS LTD. Cash Flow Statement Analysis

• ACME SOLAR HOLDINGS LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 14 billion, an improvement of 13.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -17 billion, an improvement of 22.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 690 million net cash flows seen during FY23.

ACME SOLAR HOLDINGS LTD. 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	12,635	14,342	13.5%
Cash Flow from Investing Activities	Rs m	-14,099	-17,307	-
Cash Flow from Financing Activities	Rs m	2,154	2,158	0.2%
Net Cash Flow	Rs m	690	-2,383	-

Current Valuations for ACME SOLAR HOLDINGS LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.8, an improvement from the EPS of Rs -0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.6, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	124.0	126.3
TTM Earnings per share	Rs	-0.3	66.8
Diluted earnings per share	Rs	-0.1	11.5
Price to Cash Flow	x	0.0	16.6
TTM P/E ratio	x	0.0	23.9
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	166,762
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ACME SOLAR HOLDINGS LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY24, from 2.8x 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 2.2x during FY24, from 1.0x 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 improved and stood at 26.9% during FY24, from -0.2% 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 improved and stood at 16.3% during FY24, from 7.9% 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 11.1% during FY24, from 6.8% 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	2.8	2.2
Debtors’ Days	Days	197	116
Interest coverage	x	1.0	2.2
Debt to equity ratio	x	4.3	3.0
Return on assets	%	6.8	11.1
Return on equity	%	-0.2	26.9
Return on capital employed	%	7.9	16.3

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

ACME SOLAR HOLDINGS LTD. Share Price Performance

Over the last one year, ACME SOLAR HOLDINGS LTD. share price has moved up from Rs 0.0 to Rs 275.6, registering a gain of Rs 275.6 or around 0.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,392.3 (up 1.7%). Over the last one year it has moved up from 4,661.6 to 7,392.3, a gain of 2,731 points (up 58.6%).

Overall, the S&P BSE SENSEX is up 19.4% over the year.

(To know more, check out historical annual results for ACME SOLAR HOLDINGS LTD. and quarterly results for ACME SOLAR HOLDINGS LTD.)