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GENSOL ENGINEERING 2023-24 Annual Report Analysis

Wed, 11 Sep

GENSOL ENGINEERING 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.

GENSOL ENGINEERING Income Statement Analysis

• Operating income during the year rose 142.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 195.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY24 as against 19.6% in FY23.
• Depreciation charges increased by 192.7% and finance costs increased by 351.5% YoY, respectively.
• Other income grew by 539.2% YoY.
• Net profit for the year grew by 129.1% YoY.
• Net profit margins during the year declined from 5.9% in FY23 to 5.6% in FY24.

GENSOL ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,980	9,631	142.0%
Other income	Rs m	51	328	539.2%
Total Revenues	Rs m	4,031	9,959	147.1%
Gross profit	Rs m	779	2,297	195.1%
Depreciation	Rs m	254	743	192.7%
Interest	Rs m	245	1,104	351.5%
Profit before tax	Rs m	332	779	134.9%
Tax	Rs m	98	244	148.6%
Profit after tax	Rs m	233	535	129.1%
Gross profit margin	%	19.6	23.9
Effective tax rate	%	29.6	31.4
Net profit margin	%	5.9	5.6

For Investors: Our Big Prediction

GENSOL ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 310.0%.
• Long-term debt stood at Rs 9 billion as compared to Rs 4 billion during FY23, a growth of 93.4%.
• Current assets rose 135% and stood at Rs 11 billion, while fixed assets rose 104% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 118%.

GENSOL ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,069	3,257	57.4
Current Liabilities	Rs m	2,020	8,281	310.0
Long-term Debt	Rs m	4,437	8,580	93.4
Total Liabilities	Rs m	10,656	23,243	118.1
Current assets	Rs m	4,780	11,228	134.9
Fixed Assets	Rs m	5,876	12,015	104.5
Total Assets	Rs m	10,656	23,243	118.1

GENSOL ENGINEERING Cash Flow Statement Analysis

• GENSOL ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs -981 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 9 billion, an improvement of 21% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 929 million from the Rs 1 billion net cash flows seen during FY23.

GENSOL ENGINEERING 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	1,150	-981	-
Cash Flow from Investing Activities	Rs m	-7,057	-6,667	-
Cash Flow from Financing Activities	Rs m	7,087	8,587	21.2%
Net Cash Flow	Rs m	1,180	929	-21.3%

Current Valuations for GENSOL ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an decline from the EPS of Rs 19.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 926.3, stands at 59.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.8 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 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	325.7	254.3
TTM Earnings per share	Rs	19.1	14.1
Diluted earnings per share	Rs	6.2	14.1
Price to Cash Flow	x	28.8	25.0
TTM P/E ratio	x	60.1	59.9
Price / Book Value ratio	x	6.7	9.8
Market Cap	Rs m	13,964	31,980
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GENSOL ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 2.4x 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 deteriorated and stood at 1.7x during FY24, from 2.4x 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 16.4% during FY24, from 11.3% 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 15.9% during FY24, from 8.9% 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 7.0% during FY24, from 4.5% 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	2.4	1.4
Debtors’ Days	Days	7	9
Interest coverage	x	2.4	1.7
Debt to equity ratio	x	2.1	2.6
Return on assets	%	4.5	7.0
Return on equity	%	11.3	16.4
Return on capital employed	%	8.9	15.9

To see how GENSOL ENGINEERING has performed over the last 5 years, please visit here.

GENSOL ENGINEERING Share Price Performance

Over the last one year, GENSOL ENGINEERING share price has moved up from Rs 627.4 to Rs 926.3, registering a gain of Rs 298.9 or around 47.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,070.2 (up 0.7%). Over the last one year it has moved up from 47,746.4 to 72,070.2, a gain of 24,324 points (up 50.9%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for GENSOL ENGINEERING and quarterly results for GENSOL ENGINEERING)