INDIA POWER CORPORATION 2022-23 Annual Report Analysis

Wed, 25 Oct

INDIA POWER CORPORATION has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

INDIA POWER CORPORATION Income Statement Analysis

• Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY23 as against 10.2% in FY22.
• Depreciation charges increased by 1.3% and finance costs increased by 14.8% YoY, respectively.
• Other income grew by 14.2% YoY.
• Net profit for the year grew by 2.9% YoY.
• Net profit margins during the year declined from 2.6% in FY22 to 2.5% in FY23.

INDIA POWER CORPORATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,825	6,231	7.0%
Other income	Rs m	235	269	14.2%
Total Revenues	Rs m	6,060	6,500	7.3%
Gross profit	Rs m	594	610	2.6%
Depreciation	Rs m	287	290	1.3%
Interest	Rs m	330	379	14.8%
Profit before tax	Rs m	213	209	-1.9%
Tax	Rs m	59	50	-14.3%
Profit after tax	Rs m	154	158	2.9%
Gross profit margin	%	10.2	9.8
Effective tax rate	%	27.7	24.2
Net profit margin	%	2.6	2.5

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INDIA POWER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 22.8%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 5.5%.
• Current assets rose 17% and stood at Rs 8 billion, while fixed assets fell 24% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 23 billion during FY22, thereby witnessing a fall of 12%.

INDIA POWER CORPORATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,080	9,453	-27.7
Current Liabilities	Rs m	4,830	5,933	22.8
Long-term Debt	Rs m	2,165	2,045	-5.5
Total Liabilities	Rs m	22,985	20,198	-12.1
Current assets	Rs m	6,663	7,768	16.6
Fixed Assets	Rs m	16,322	12,430	-23.8
Total Assets	Rs m	22,985	20,198	-12.1

INDIA POWER CORPORATION Cash Flow Statement Analysis

• INDIA POWER CORPORATION's cash flow from operating activities (CFO) during FY23 stood at Rs 683 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -637 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 40 million from the Rs -10 million net cash flows seen during FY22.

INDIA POWER CORPORATION Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-53	683	-
Cash Flow from Investing Activities	Rs m	-109	-6	-
Cash Flow from Financing Activities	Rs m	153	-637	-
Net Cash Flow	Rs m	-10	40	-

Current Valuations for INDIA POWER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14.6, stands at 83.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 28.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	6.0	6.4
TTM Earnings per share	Rs	0.2	0.2
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	0.0	28.2
TTM P/E ratio	x	0.0	83.7
Price / Book Value ratio	x	1.6	1.3
Market Cap	Rs m	20,888	12,659
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for INDIA POWER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.4x during FY22. 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 1.6x during FY23, from 1.6x during FY22. 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 1.7% during FY23, from 1.2% during FY23. 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 5.1% during FY23, from 3.6% during FY22. 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 2.7% during FY23, from 2.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.3
Debtors’ Days	Days	526	623
Interest coverage	x	1.6	1.6
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.1	2.7
Return on equity	%	1.2	1.7
Return on capital employed	%	3.6	5.1

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

INDIA POWER CORPORATION Share Price Performance

Over the last one year, INDIA POWER CORPORATION share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,304.4 (down 1.1%). Over the last one year it has moved down from 4,734.7 to 4,304.4, a loss of 430 points (down 9.1%).

Overall, the NIFTY 50 is down 0.0% over the year.

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