GODAWARI POWER 2023-24 Annual Report Analysis

Mon, 2 Sep

GODAWARI 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.

GODAWARI POWER Income Statement Analysis

• Operating income during the year fell 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.9% in FY24 as against 20.0% in FY23.
• Depreciation charges increased by 14.4% and finance costs increased by 16.0% YoY, respectively.
• Other income declined by 4.8% YoY.
• Net profit for the year grew by 17.9% YoY.
• Net profit margins during the year grew from 13.8% in FY23 to 17.1% in FY24.

GODAWARI POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	57,530	54,554	-5.2%
Other income	Rs m	1,042	992	-4.8%
Total Revenues	Rs m	58,573	55,546	-5.2%
Gross profit	Rs m	11,533	13,577	17.7%
Depreciation	Rs m	1,235	1,413	14.4%
Interest	Rs m	514	596	16.0%
Profit before tax	Rs m	10,826	12,560	16.0%
Tax	Rs m	2,892	3,204	10.8%
Profit after tax	Rs m	7,934	9,356	17.9%
Gross profit margin	%	20.0	24.9
Effective tax rate	%	26.7	25.5
Net profit margin	%	13.8	17.1

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GODAWARI POWER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -21.4%.
• Long-term debt down at Rs 92 million as compared to Rs 94 million during FY23, a fall of 1.9%.
• Current assets rose 4% and stood at Rs 24 billion, while fixed assets rose 11% and stood at Rs 31 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 55 billion as against Rs 52 billion during FY23, thereby witnessing a growth of 7%.

GODAWARI POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	39,055	44,921	15.0
Current Liabilities	Rs m	9,477	7,452	-21.4
Long-term Debt	Rs m	94	92	-1.9
Total Liabilities	Rs m	51,594	55,452	7.5
Current assets	Rs m	23,227	24,067	3.6
Fixed Assets	Rs m	28,366	31,385	10.6
Total Assets	Rs m	51,594	55,452	7.5

GODAWARI POWER Cash Flow Statement Analysis

• GODAWARI POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 5.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion, an improvement of 229.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs 5 billion net cash flows seen during FY23.

GODAWARI 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	9,934	10,444	5.1%
Cash Flow from Investing Activities	Rs m	-2,288	-7,535	-
Cash Flow from Financing Activities	Rs m	-2,773	-6,787	-
Net Cash Flow	Rs m	4,963	-3,878	-

Current Valuations for GODAWARI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.0, an improvement from the EPS of Rs 61.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 927.4, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	443.5	437.4
TTM Earnings per share	Rs	61.2	75.0
Diluted earnings per share	Rs	59.3	69.9
Price to Cash Flow	x	5.1	6.9
TTM P/E ratio	x	5.9	12.6
Price / Book Value ratio	x	1.2	1.6
Market Cap	Rs m	46,743	74,009
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for GODAWARI POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY24, from 2.5x 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 22.1x during FY24, from 22.1x 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 20.8% during FY24, from 20.3% 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 29.2% during FY24, from 29.0% 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 17.9% during FY24, from 16.4% 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	2.5	3.2
Debtors’ Days	Days	188	142
Interest coverage	x	22.1	22.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.4	17.9
Return on equity	%	20.3	20.8
Return on capital employed	%	29.0	29.2

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

GODAWARI POWER Share Price Performance

Over the last one year, GODAWARI POWER share price has moved up from Rs 621.2 to Rs 927.4, registering a gain of Rs 306.2 or around 49.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,026.5 (down 1.3%). Over the last one year it has moved up from 22,542.1 to 32,026.5, a gain of 9,484 points (up 42.1%).

Overall, the S&P BSE SENSEX is up 26.8% over the year.

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