GUJARAT INDUSTRIES POWER 2023-24 Annual Report Analysis

Wed, 18 Sep

GUJARAT INDUSTRIES POWER 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.

GUJARAT INDUSTRIES POWER Income Statement Analysis

• Operating income during the year fell 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.3% in FY24 as against 30.1% in FY23.
• Depreciation charges increased by 1.8% and finance costs decreased by 0.9% YoY, respectively.
• Other income grew by 58.7% YoY.
• Net profit for the year grew by 5.2% YoY.
• Net profit margins during the year grew from 13.9% in FY23 to 14.7% in FY24.

GUJARAT INDUSTRIES POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,556	13,486	-0.5%
Other income	Rs m	481	764	58.7%
Total Revenues	Rs m	14,037	14,250	1.5%
Gross profit	Rs m	4,078	3,812	-6.5%
Depreciation	Rs m	1,650	1,679	1.8%
Interest	Rs m	375	372	-0.9%
Profit before tax	Rs m	2,534	2,525	-0.4%
Tax	Rs m	647	540	-16.6%
Profit after tax	Rs m	1,887	1,985	5.2%
Gross profit margin	%	30.1	28.3
Effective tax rate	%	25.5	21.4
Net profit margin	%	13.9	14.7

Don't Miss: Key Information for Long-term Investors

GUJARAT INDUSTRIES POWER 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 18.3%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 19.2%.
• Current assets rose 10% and stood at Rs 12 billion, while fixed assets rose 18% and stood at Rs 41 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 52 billion as against Rs 45 billion during FY23, thereby witnessing a growth of 16%.

GUJARAT INDUSTRIES POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	31,543	33,055	4.8
Current Liabilities	Rs m	2,844	3,365	18.3
Long-term Debt	Rs m	3,907	3,156	-19.2
Total Liabilities	Rs m	44,870	52,183	16.3
Current assets	Rs m	10,609	11,619	9.5
Fixed Assets	Rs m	34,261	40,564	18.4
Total Assets	Rs m	44,870	52,183	16.3

GUJARAT INDUSTRIES POWER Cash Flow Statement Analysis

• GUJARAT INDUSTRIES POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 36.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 69.2% 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 2 billion from the Rs 2 billion net cash flows seen during FY23.

GUJARAT INDUSTRIES POWER 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	4,103	5,615	36.9%
Cash Flow from Investing Activities	Rs m	-1,282	-2,169	-
Cash Flow from Financing Activities	Rs m	-1,102	-1,899	-
Net Cash Flow	Rs m	1,718	1,547	-10.0%

Current Valuations for GUJARAT INDUSTRIES POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an improvement from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 226.5, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	89.6	89.2
TTM Earnings per share	Rs	12.5	13.1
Diluted earnings per share	Rs	12.5	13.1
Price to Cash Flow	x	3.2	6.4
TTM P/E ratio	x	6.1	16.4
Price / Book Value ratio	x	0.4	0.7
Market Cap	Rs m	13,295	23,448
Dividends per share (Unadj.)	Rs	3.8	4.0

Ratio Analysis for GUJARAT INDUSTRIES POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY24, from 3.7x 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 improved and stood at 7.8x during FY24, from 7.8x 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 6.0% during FY24, from 6.0% 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 8.0% during FY24, from 8.2% 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 4.5% during FY24, from 5.0% 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	3.7	3.5
Debtors’ Days	Days	827	762
Interest coverage	x	7.8	7.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.0	4.5
Return on equity	%	6.0	6.0
Return on capital employed	%	8.2	8.0

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

GUJARAT INDUSTRIES POWER Share Price Performance

Over the last one year, GUJARAT INDUSTRIES POWER share price has moved up from Rs 141.9 to Rs 226.5, registering a gain of Rs 84.6 or around 59.6%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,382.8 (up 0.1%). Over the last one year it has moved up from 4,664.3 to 8,382.8, a gain of 3,719 points (up 79.7%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for GUJARAT INDUSTRIES POWER and quarterly results for GUJARAT INDUSTRIES POWER)