ASIAN ENERGY SERVICES 2023-24 Annual Report Analysis

Thu, 12 Sep

ASIAN ENERGY SERVICES 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.

ASIAN ENERGY SERVICES Income Statement Analysis

• Operating income during the year rose 177.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.6% in FY24 as against 22.0% in FY23.
• Depreciation charges decreased by 22.5% and finance costs decreased by 16.4% YoY, respectively.
• Other income grew by 51.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 40.4% in FY23 to 8.4% in FY24.

ASIAN ENERGY SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,100	3,051	177.5%
Other income	Rs m	41	62	51.8%
Total Revenues	Rs m	1,140	3,113	172.9%
Gross profit	Rs m	-242	415	NA
Depreciation	Rs m	220	170	-22.5%
Interest	Rs m	25	21	-16.4%
Profit before tax	Rs m	-446	287	NA
Tax	Rs m	-1	31	NA
Profit after tax	Rs m	-444	255	NA
Gross profit margin	%	-22.0	13.6
Effective tax rate	%	0.3	10.9
Net profit margin	%	-40.4	8.4

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ASIAN ENERGY SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 933 million in FY23, thereby witnessing an increase of 9.2%.
• Long-term debt down at Rs 9 million as compared to Rs 26 million during FY23, a fall of 63.7%.
• Current assets rose 26% and stood at Rs 2 billion, while fixed assets rose 36% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 30%.

ASIAN ENERGY SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,994	2,654	33.1
Current Liabilities	Rs m	933	1,018	9.2
Long-term Debt	Rs m	26	9	-63.7
Total Liabilities	Rs m	2,967	3,845	29.6
Current assets	Rs m	1,773	2,225	25.5
Fixed Assets	Rs m	1,194	1,619	35.6
Total Assets	Rs m	2,967	3,845	29.6

ASIAN ENERGY SERVICES Cash Flow Statement Analysis

• ASIAN ENERGY SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs -499 million, an improvement of 1,790.8% 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 499 million, an improvement of 402% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -87 million from the Rs -107 million net cash flows seen during FY23.

ASIAN ENERGY SERVICES 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	-26	-499	-
Cash Flow from Investing Activities	Rs m	-192	-74	-
Cash Flow from Financing Activities	Rs m	99	499	401.9%
Net Cash Flow	Rs m	-107	-87	-

Current Valuations for ASIAN ENERGY SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an improvement from the EPS of Rs -11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 387.3, stands at 58.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 20.8 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	29.2	75.0
TTM Earnings per share	Rs	-11.8	6.3
Diluted earnings per share	Rs	-9.9	5.7
Price to Cash Flow	x	-21.9	20.8
TTM P/E ratio	x	-10.9	58.5
Price / Book Value ratio	x	1.7	3.3
Market Cap	Rs m	3,424	8,842
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASIAN ENERGY SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 1.9x 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 improved and stood at 14.9x during FY24, from -17.1x 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 9.6% during FY24, from -22.3% 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 11.5% during FY24, from -20.8% 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 7.2% during FY24, from -14.1% 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	1.9	2.2
Debtors’ Days	Days	3,543	1,626
Interest coverage	x	-17.1	14.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-14.1	7.2
Return on equity	%	-22.3	9.6
Return on capital employed	%	-20.8	11.5

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

ASIAN ENERGY SERVICES Share Price Performance

Over the last one year, ASIAN ENERGY SERVICES share price has moved up from Rs 147.7 to Rs 387.3, registering a gain of Rs 239.6 or around 162.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 30,811.6 (up 1.5%). Over the last one year it has moved up from 18,978.5 to 30,811.6, a gain of 11,833 points (up 62.3%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for ASIAN ENERGY SERVICES and quarterly results for ASIAN ENERGY SERVICES)