GENUS POWER 2023-24 Annual Report Analysis

Wed, 11 Sep

GENUS 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.

GENUS POWER Income Statement Analysis

• Operating income during the year rose 48.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.2% in FY24 as against 8.3% in FY23.
• Depreciation charges increased by 13.5% and finance costs increased by 100.1% YoY, respectively.
• Other income grew by 235.5% YoY.
• Net profit for the year grew by 240.9% YoY.
• Net profit margins during the year grew from 3.7% in FY23 to 8.4% in FY24.

GENUS POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,084	12,006	48.5%
Other income	Rs m	249	837	235.5%
Total Revenues	Rs m	8,333	12,843	54.1%
Gross profit	Rs m	674	1,349	100.1%
Depreciation	Rs m	187	213	13.5%
Interest	Rs m	288	577	100.1%
Profit before tax	Rs m	448	1,397	211.7%
Tax	Rs m	152	386	154.6%
Profit after tax	Rs m	296	1,010	240.9%
Gross profit margin	%	8.3	11.2
Effective tax rate	%	33.8	27.7
Net profit margin	%	3.7	8.4

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GENUS POWER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 71.6%.
• Long-term debt stood at Rs 782 million as compared to Rs 17 million during FY23, a growth of 4520.0%.
• Current assets rose 73% and stood at Rs 22 billion, while fixed assets rose 42% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 66%.

GENUS POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,768	15,683	60.6
Current Liabilities	Rs m	5,760	9,883	71.6
Long-term Debt	Rs m	17	782	4,520.0
Total Liabilities	Rs m	16,620	27,669	66.5
Current assets	Rs m	12,922	22,410	73.4
Fixed Assets	Rs m	3,698	5,259	42.2
Total Assets	Rs m	16,620	27,669	66.5

GENUS POWER Cash Flow Statement Analysis

• GENUS POWER's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 445.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 561% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -167 million from the Rs 930 million net cash flows seen during FY23.

GENUS 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	864	-1,519	-
Cash Flow from Investing Activities	Rs m	-793	-4,326	-
Cash Flow from Financing Activities	Rs m	859	5,678	560.9%
Net Cash Flow	Rs m	930	-167	-

Current Valuations for GENUS POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an improvement from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 419.4, stands at 100.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 10.6 times.
• The company's price to cash flow (P/CF) ratio stood at 53.2 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	31.4	39.5
TTM Earnings per share	Rs	1.2	3.3
Diluted earnings per share	Rs	1.0	3.3
Price to Cash Flow	x	53.2	53.2
TTM P/E ratio	x	86.7	100.5
Price / Book Value ratio	x	2.4	4.1
Market Cap	Rs m	23,087	65,041
Dividends per share (Unadj.)	Rs	0.8	0.6

Ratio Analysis for GENUS POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 2.2x 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 3.4x during FY24, from 2.6x 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 6.4% during FY24, from 3.0% 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 improved and stood at 12.0% during FY24, from 7.5% 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 5.7% during FY24, from 3.5% 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	2.2	2.3
Debtors’ Days	Days	2,130	1,762
Interest coverage	x	2.6	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	5.7
Return on equity	%	3.0	6.4
Return on capital employed	%	7.5	12.0

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

GENUS POWER Share Price Performance

Over the last one year, GENUS POWER share price has moved up from Rs 271.7 to Rs 419.4, registering a gain of Rs 147.8 or around 54.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,035.6 (up 0.7%). Over the last one year it has moved up from 47,746.4 to 72,035.6, a gain of 24,289 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 GENUS POWER and quarterly results for GENUS POWER)