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ADANI ENERGY SOLUTIONS 2023-24 Annual Report Analysis

Fri, 31 May

ADANI ENERGY SOLUTIONS 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.

ADANI ENERGY SOLUTIONS Income Statement Analysis

• Operating income during the year rose 24.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.4% in FY24 as against 34.0% in FY23.
• Depreciation charges increased by 10.5% and finance costs decreased by 0.5% YoY, respectively.
• Other income declined by 61.4% YoY.
• Net profit for the year declined by 6.6% YoY.
• Net profit margins during the year declined from 9.6% in FY23 to 7.2% in FY24.

ADANI ENERGY SOLUTIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	132,927	166,074	24.9%
Other income	Rs m	15,833	6,110	-61.4%
Total Revenues	Rs m	148,760	172,183	15.7%
Gross profit	Rs m	45,176	57,112	26.4%
Depreciation	Rs m	16,077	17,761	10.5%
Interest	Rs m	27,815	27,665	-0.5%
Profit before tax	Rs m	17,117	17,796	4.0%
Tax	Rs m	4,311	5,840	35.4%
Profit after tax	Rs m	12,806	11,956	-6.6%
Gross profit margin	%	34.0	34.4
Effective tax rate	%	25.2	32.8
Net profit margin	%	9.6	7.2

For Investors: Our Big Prediction

ADANI ENERGY SOLUTIONS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 80 billion as compared to Rs 70 billion in FY23, thereby witnessing an increase of 14.2%.
• Long-term debt stood at Rs 336 billion as compared to Rs 313 billion during FY23, a growth of 7.1%.
• Current assets rose 8% and stood at Rs 96 billion, while fixed assets rose 9% and stood at Rs 489 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 585 billion as against Rs 539 billion during FY23, thereby witnessing a growth of 9%.

ADANI ENERGY SOLUTIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	117,492	126,416	7.6
Current Liabilities	Rs m	70,173	80,167	14.2
Long-term Debt	Rs m	313,304	335,596	7.1
Total Liabilities	Rs m	539,318	585,384	8.5
Current assets	Rs m	89,069	96,181	8.0
Fixed Assets	Rs m	450,249	489,203	8.7
Total Assets	Rs m	539,318	585,384	8.5

ADANI ENERGY SOLUTIONS Cash Flow Statement Analysis

• ADANI ENERGY SOLUTIONS's cash flow from operating activities (CFO) during FY24 stood at Rs 60 billion, an improvement of 59.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -49 billion, an improvement of 5.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 billion from the Rs 16 million net cash flows seen during FY23.

ADANI ENERGY SOLUTIONS 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	37,770	60,376	59.9%
Cash Flow from Investing Activities	Rs m	-46,987	-49,430	-
Cash Flow from Financing Activities	Rs m	9,232	-5,432	-
Net Cash Flow	Rs m	16	5,514	34,580.5%

Current Valuations for ADANI ENERGY SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.7, an decline from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,110.0, stands at 103.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.8 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 36.4 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	119.2	148.9
TTM Earnings per share	Rs	11.5	10.7
Diluted earnings per share	Rs	11.5	10.7
Price to Cash Flow	x	38.5	36.4
TTM P/E ratio	x	87.2	103.2
Price / Book Value ratio	x	23.1	8.5
Market Cap	Rs m	2,715,416	1,080,299
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI ENERGY SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 1.6x during FY24, from 1.6x 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 9.5% during FY24, from 10.9% 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 9.8% during FY24, from 10.4% 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 declined and down at 6.8% during FY24, from 7.5% 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	1.3	1.2
Debtors’ Days	Days	4	3
Interest coverage	x	1.6	1.6
Debt to equity ratio	x	2.7	2.7
Return on assets	%	7.5	6.8
Return on equity	%	10.9	9.5
Return on capital employed	%	10.4	9.8

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

ADANI ENERGY SOLUTIONS Share Price Performance

Over the last one year, ADANI ENERGY SOLUTIONS share price has moved up from Rs 777.6 to Rs 1,110.0, registering a gain of Rs 332.5 or around 42.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,647.6 (up 1.1%). Over the last one year it has moved up from 3,819.3 to 7,647.6, a gain of 3,828 points (up 100.2%).

Overall, the S&P BSE SENSEX is up 18.4% over the year.

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