RELIANCE INFRA 2023-24 Annual Report Analysis

Tue, 16 Jul

RELIANCE INFRA 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.

RELIANCE INFRA Income Statement Analysis

• Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 188.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.1% in FY24 as against 4.5% in FY23.
• Depreciation charges increased by 3.7% and finance costs decreased by 3.5% YoY, respectively.
• Other income grew by 7.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 11.5% in FY23 to 2.8% in FY24.

RELIANCE INFRA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	214,351	228,046	6.4%
Other income	Rs m	4,192	4,523	7.9%
Total Revenues	Rs m	218,543	232,570	6.4%
Gross profit	Rs m	9,571	27,559	188.0%
Depreciation	Rs m	14,485	15,028	3.7%
Interest	Rs m	23,935	23,101	-3.5%
Profit before tax	Rs m	-24,657	-6,046	NA
Tax	Rs m	74	410	456.2%
Profit after tax	Rs m	-24,730	-6,456	NA
Gross profit margin	%	4.5	12.1
Effective tax rate	%	-0.3	-6.8
Net profit margin	%	-11.5	-2.8

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RELIANCE INFRA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 344 billion as compared to Rs 341 billion in FY23, thereby witnessing an increase of 0.9%.
• Long-term debt down at Rs 32 billion as compared to Rs 44 billion during FY23, a fall of 28.5%.
• Current assets rose 2% and stood at Rs 123 billion, while fixed assets fell 11% and stood at Rs 223 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 592 billion as against Rs 609 billion during FY23, thereby witnessing a fall of 3%.

RELIANCE INFRA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	92,937	87,473	-5.9
Current Liabilities	Rs m	341,322	344,284	0.9
Long-term Debt	Rs m	44,348	31,704	-28.5
Total Liabilities	Rs m	608,992	591,592	-2.9
Current assets	Rs m	119,620	122,576	2.5
Fixed Assets	Rs m	250,525	222,525	-11.2
Total Assets	Rs m	608,992	591,592	-2.9

RELIANCE INFRA Cash Flow Statement Analysis

• RELIANCE INFRA's cash flow from operating activities (CFO) during FY24 stood at Rs 41 billion, an improvement of 18.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -36 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 9 billion from the Rs -1 billion net cash flows seen during FY23.

RELIANCE INFRA 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	34,583	40,975	18.5%
Cash Flow from Investing Activities	Rs m	-13,331	-4,480	-
Cash Flow from Financing Activities	Rs m	-22,417	-36,476	-
Net Cash Flow	Rs m	-1,165	8,647	-

Current Valuations for RELIANCE INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.3, an improvement from the EPS of Rs -70.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 190.0, stands at -11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 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	609.3	575.7
TTM Earnings per share	Rs	-70.3	-16.3
Diluted earnings per share	Rs	-62.4	-16.3
Price to Cash Flow	x	-5.6	9.7
TTM P/E ratio	x	-2.3	-11.7
Price / Book Value ratio	x	0.5	0.9
Market Cap	Rs m	49,682	83,069
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RELIANCE INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY24, from 0.4x 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 0.7x during FY24, from 0.0x 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 improved and stood at -7.4% during FY24, from -26.6% 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 14.3% during FY24, from -0.5% 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 2.8% during FY24, from -0.1% 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	0.4	0.4
Debtors’ Days	Days	4	3
Interest coverage	x	0.0	0.7
Debt to equity ratio	x	0.5	0.4
Return on assets	%	-0.1	2.8
Return on equity	%	-26.6	-7.4
Return on capital employed	%	-0.5	14.3

To see how RELIANCE INFRA has performed over the last 5 years, please visit here.

RELIANCE INFRA Share Price Performance

Over the last one year, RELIANCE INFRA share price has moved up from Rs 136.0 to Rs 190.0, registering a gain of Rs 54.0 or around 39.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,068.6 (down 0.4%). Over the last one year it has moved up from 3,972.3 to 8,068.6, a gain of 4,096 points (up 103.1%).

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for RELIANCE INFRA and quarterly results for RELIANCE INFRA)