ADANI GREEN ENERGY 2023-24 Annual Report Analysis

Fri, 31 May

ADANI GREEN ENERGY 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 GREEN ENERGY Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 79.6% in FY24 as against 61.7% in FY23.
• Depreciation charges increased by 46.4% and finance costs increased by 45.6% YoY, respectively.
• Other income declined by 9.4% YoY.
• Net profit for the year grew by 29.5% YoY.
• Net profit margins during the year grew from 12.5% in FY23 to 13.7% in FY24.

ADANI GREEN ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	77,760	92,200	18.6%
Other income	Rs m	13,690	12,400	-9.4%
Total Revenues	Rs m	91,450	104,600	14.4%
Gross profit	Rs m	47,960	73,400	53.0%
Depreciation	Rs m	13,000	19,030	46.4%
Interest	Rs m	34,390	50,060	45.6%
Profit before tax	Rs m	14,260	16,710	17.2%
Tax	Rs m	4,530	4,110	-9.3%
Profit after tax	Rs m	9,730	12,600	29.5%
Gross profit margin	%	61.7	79.6
Effective tax rate	%	31.8	24.6
Net profit margin	%	12.5	13.7

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

ADANI GREEN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 264 billion as compared to Rs 79 billion in FY23, thereby witnessing an increase of 232.3%.
• Long-term debt down at Rs 419 billion as compared to Rs 501 billion during FY23, a fall of 16.2%.
• Current assets rose 84% and stood at Rs 133 billion, while fixed assets rose 26% and stood at Rs 742 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 881 billion as against Rs 669 billion during FY23, thereby witnessing a growth of 32%.

ADANI GREEN ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	58,800	60,720	3.3
Current Liabilities	Rs m	79,410	263,880	232.3
Long-term Debt	Rs m	500,560	419,270	-16.2
Total Liabilities	Rs m	669,020	880,860	31.7
Current assets	Rs m	72,130	133,060	84.5
Fixed Assets	Rs m	590,940	742,230	25.6
Total Assets	Rs m	669,020	880,860	31.7

ADANI GREEN ENERGY Cash Flow Statement Analysis

• ADANI GREEN ENERGY 's cash flow from operating activities (CFO) during FY24 stood at Rs 77 billion, an improvement of 6.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -211 billion, an improvement of 446.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 140 billion, an improvement of 569% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 billion from the Rs 4 billion net cash flows seen during FY23.

ADANI GREEN ENERGY 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	72,650	77,130	6.2%
Cash Flow from Investing Activities	Rs m	-38,570	-210,600	-
Cash Flow from Financing Activities	Rs m	-29,730	139,530	-
Net Cash Flow	Rs m	4,350	6,060	39.3%

Current Valuations for ADANI GREEN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an improvement from the EPS of Rs 6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,887.9, stands at 308.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 49.2 times, while the price to sales ratio stands at 32.4 times.
• The company's price to cash flow (P/CF) ratio stood at 70.4 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	49.1	58.2
TTM Earnings per share	Rs	6.1	8.0
Diluted earnings per share	Rs	6.1	8.0
Price to Cash Flow	x	61.5	70.4
TTM P/E ratio	x	152.8	308.0
Price / Book Value ratio	x	47.0	36.7
Market Cap	Rs m	2,762,038	2,227,150
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI GREEN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.9x 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 deteriorated and stood at 1.3x during FY24, from 1.4x 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 20.8% during FY24, from 16.5% 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 improved and stood at 13.9% during FY24, from 8.7% 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 7.1% during FY24, from 6.6% 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	0.9	0.5
Debtors’ Days	Days	10	5
Interest coverage	x	1.4	1.3
Debt to equity ratio	x	8.5	6.9
Return on assets	%	6.6	7.1
Return on equity	%	16.5	20.8
Return on capital employed	%	8.7	13.9

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

ADANI GREEN ENERGY Share Price Performance

Over the last one year, ADANI GREEN ENERGY share price has moved up from Rs 983.4 to Rs 1,887.9, registering a gain of Rs 904.5 or around 92.0%.

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 GREEN ENERGY and quarterly results for ADANI GREEN ENERGY )