ADANI POWER 2023-24 Annual Report Analysis

Wed, 5 Jun

ADANI POWER 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 POWER Income Statement Analysis

• Operating income during the year rose 29.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 81.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.1% in FY24 as against 25.9% in FY23.
• Depreciation charges increased by 19.0% and finance costs increased by 1.6% YoY, respectively.
• Other income grew by 132.7% YoY.
• Net profit for the year grew by 94.2% YoY.
• Net profit margins during the year grew from 27.7% in FY23 to 41.4% in FY24.

ADANI POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	387,733	503,513	29.9%
Other income	Rs m	42,672	99,302	132.7%
Total Revenues	Rs m	430,405	602,815	40.1%
Gross profit	Rs m	100,447	181,807	81.0%
Depreciation	Rs m	33,037	39,313	19.0%
Interest	Rs m	33,335	33,881	1.6%
Profit before tax	Rs m	76,747	207,915	170.9%
Tax	Rs m	-30,519	-373	NA
Profit after tax	Rs m	107,266	208,288	94.2%
Gross profit margin	%	25.9	36.1
Effective tax rate	%	-39.8	-0.2
Net profit margin	%	27.7	41.4

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ADANI POWER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 158 billion as compared to Rs 177 billion in FY23, thereby witnessing an decrease of -11.0%.
• Long-term debt down at Rs 266 billion as compared to Rs 337 billion during FY23, a fall of 21.1%.
• Current assets rose 31% and stood at Rs 256 billion, while fixed assets rose 0% and stood at Rs 664 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 919 billion as against Rs 858 billion during FY23, thereby witnessing a growth of 7%.

ADANI POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	298,757	431,450	44.4
Current Liabilities	Rs m	177,446	157,887	-11.0
Long-term Debt	Rs m	337,026	265,950	-21.1
Total Liabilities	Rs m	858,213	919,484	7.1
Current assets	Rs m	195,530	255,866	30.9
Fixed Assets	Rs m	662,683	663,619	0.1
Total Assets	Rs m	858,213	919,484	7.1

ADANI POWER Cash Flow Statement Analysis

• ADANI POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 142 billion, an improvement of 68.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 35 billion, an improvement of 125.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -169 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 billion from the Rs -4 billion net cash flows seen during FY23.

ADANI POWER 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	84,305	141,702	68.1%
Cash Flow from Investing Activities	Rs m	15,444	34,850	125.7%
Cash Flow from Financing Activities	Rs m	-104,085	-168,640	-
Net Cash Flow	Rs m	-4,331	7,870	-

Current Valuations for ADANI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.0, an improvement from the EPS of Rs 27.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 650.0, stands at 12.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 6.0 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	100.5	130.5
TTM Earnings per share	Rs	27.8	54.0
Diluted earnings per share	Rs	27.8	54.0
Price to Cash Flow	x	5.3	6.0
TTM P/E ratio	x	6.9	12.0
Price / Book Value ratio	x	3.6	3.5
Market Cap	Rs m	1,090,260	1,493,407
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.1x 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 7.1x 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 improved and stood at 48.3% during FY24, from 35.9% 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 improved and stood at 34.7% during FY24, from 17.3% 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 26.3% during FY24, from 16.4% 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	1.1	1.6
Debtors’ Days	Days	11	8
Interest coverage	x	3.3	7.1
Debt to equity ratio	x	1.1	0.6
Return on assets	%	16.4	26.3
Return on equity	%	35.9	48.3
Return on capital employed	%	17.3	34.7

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

ADANI POWER Share Price Performance

Over the last one year, ADANI POWER share price has moved up from Rs 259.5 to Rs 650.0, registering a gain of Rs 390.6 or around 150.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 6,907.1 (down 2.8%). Over the last one year it has moved up from 3,847.5 to 6,907.1, a gain of 3,060 points (up 79.5%).

Overall, the S&P BSE SENSEX is up 15.2% over the year.

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