BOROSIL RENEWABLES 2023-24 Annual Report Analysis

Mon, 5 Aug

BOROSIL RENEWABLES 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.

BOROSIL RENEWABLES Income Statement Analysis

• Operating income during the year rose 53.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.3% in FY24 as against 16.0% in FY23.
• Depreciation charges increased by 143.9% and finance costs increased by 275.0% YoY, respectively.
• Other income grew by 11.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 7.9% in FY23 to 3.7% in FY24.

BOROSIL RENEWABLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,940	13,693	53.2%
Other income	Rs m	201	224	11.6%
Total Revenues	Rs m	9,141	13,917	52.2%
Gross profit	Rs m	1,428	858	-39.9%
Depreciation	Rs m	540	1,317	143.9%
Interest	Rs m	78	292	275.0%
Profit before tax	Rs m	1,010	-527	NA
Tax	Rs m	304	-25	NA
Profit after tax	Rs m	706	-503	NA
Gross profit margin	%	16.0	6.3
Effective tax rate	%	30.1	4.7
Net profit margin	%	7.9	-3.7

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BOROSIL RENEWABLES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 1.0%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY23, a growth of 31.3%.
• Current assets rose 8% and stood at Rs 6 billion, while fixed assets rose 1% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 3%.

BOROSIL RENEWABLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,180	8,715	-5.1
Current Liabilities	Rs m	3,224	3,257	1.0
Long-term Debt	Rs m	3,193	4,192	31.3
Total Liabilities	Rs m	16,322	16,840	3.2
Current assets	Rs m	5,568	6,011	8.0
Fixed Assets	Rs m	10,755	10,829	0.7
Total Assets	Rs m	16,322	16,840	3.2

BOROSIL RENEWABLES Cash Flow Statement Analysis

• BOROSIL RENEWABLES's cash flow from operating activities (CFO) during FY24 stood at Rs 687 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 214 million from the Rs 1 billion net cash flows seen during FY23.

BOROSIL RENEWABLES 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	-64	687	-
Cash Flow from Investing Activities	Rs m	-2,412	-2,153	-
Cash Flow from Financing Activities	Rs m	2,375	1,680	-29.3%
Net Cash Flow	Rs m	1,149	214	-81.3%

Current Valuations for BOROSIL RENEWABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.9, an decline from the EPS of Rs 5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 509.4, stands at -129.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 84.9 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	68.5	104.9
TTM Earnings per share	Rs	5.4	-3.9
Diluted earnings per share	Rs	5.4	-3.9
Price to Cash Flow	x	43.1	84.9
TTM P/E ratio	x	76.1	-129.9
Price / Book Value ratio	x	8.6	7.9
Market Cap	Rs m	79,150	69,117
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BOROSIL RENEWABLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.7x 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 -0.8x during FY24, from 14.0x 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 declined and down at -5.8% during FY24, from 7.7% 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 -1.8% during FY24, from 8.8% 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 declined and down at -1.3% during FY24, from 4.8% 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	1.7	1.8
Debtors’ Days	Days	381	327
Interest coverage	x	14.0	-0.8
Debt to equity ratio	x	0.3	0.5
Return on assets	%	4.8	-1.3
Return on equity	%	7.7	-5.8
Return on capital employed	%	8.8	-1.8

To see how BOROSIL RENEWABLES has performed over the last 5 years, please visit here.

BOROSIL RENEWABLES Share Price Performance

Over the last one year, BOROSIL RENEWABLES share price has moved up from Rs 497.5 to Rs 509.4, registering a gain of Rs 11.9 or around 2.4%.

Overall, the S&P BSE SENSEX is up 18.6% over the year.

(To know more, check out historical annual results for BOROSIL RENEWABLES and quarterly results for BOROSIL RENEWABLES)