INDIAN ENERGY EXCHANGE 2023-24 Annual Report Analysis

Tue, 16 Jul

INDIAN ENERGY EXCHANGE 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.

INDIAN ENERGY EXCHANGE Income Statement Analysis

• Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 86.3% in FY24 as against 87.2% in FY23.
• Depreciation charges increased by 10.1% and finance costs increased by 15.4% YoY, respectively.
• Other income grew by 38.8% YoY.
• Net profit for the year grew by 14.7% YoY.
• Net profit margins during the year grew from 76.3% in FY23 to 78.1% in FY24.

INDIAN ENERGY EXCHANGE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,009	4,492	12.0%
Other income	Rs m	732	1,017	38.8%
Total Revenues	Rs m	4,741	5,508	16.2%
Gross profit	Rs m	3,496	3,878	10.9%
Depreciation	Rs m	186	205	10.1%
Interest	Rs m	25	28	15.4%
Profit before tax	Rs m	4,018	4,661	16.0%
Tax	Rs m	959	1,154	20.2%
Profit after tax	Rs m	3,059	3,508	14.7%
Gross profit margin	%	87.2	86.3
Effective tax rate	%	23.9	24.7
Net profit margin	%	76.3	78.1

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INDIAN ENERGY EXCHANGE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 23.1%.
• Current assets rose 53% and stood at Rs 12 billion, while fixed assets fell 13% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 22%.

INDIAN ENERGY EXCHANGE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,829	9,559	22.1
Current Liabilities	Rs m	6,104	7,514	23.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,534	17,736	22.0
Current assets	Rs m	7,717	11,837	53.4
Fixed Assets	Rs m	6,817	5,899	-13.5
Total Assets	Rs m	14,534	17,736	22.0

INDIAN ENERGY EXCHANGE Cash Flow Statement Analysis

• INDIAN ENERGY EXCHANGE 's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -245 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 909 million from the Rs -2 billion net cash flows seen during FY23.

INDIAN ENERGY EXCHANGE 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	-226	2,985	-
Cash Flow from Investing Activities	Rs m	703	-245	-
Cash Flow from Financing Activities	Rs m	-2,148	-1,831	-
Net Cash Flow	Rs m	-1,671	909	-

Current Valuations for INDIAN ENERGY EXCHANGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 180.8, stands at 47.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.9 times, while the price to sales ratio stands at 35.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.7 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	4.5	5.1
TTM Earnings per share	Rs	3.4	3.9
Diluted earnings per share	Rs	3.4	3.9
Price to Cash Flow	x	35.1	34.7
TTM P/E ratio	x	39.0	47.4
Price / Book Value ratio	x	21.4	13.5
Market Cap	Rs m	167,731	128,649
Dividends per share (Unadj.)	Rs	1.0	2.5

Ratio Analysis for INDIAN ENERGY EXCHANGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.3x 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 165.4x during FY24, from 164.5x 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 declined and down at 36.7% during FY24, from 39.1% 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 49.1% during FY24, from 51.6% 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 19.9% during FY24, from 21.2% 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	1.3	1.6
Debtors’ Days	Days	64	701
Interest coverage	x	164.5	165.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.2	19.9
Return on equity	%	39.1	36.7
Return on capital employed	%	51.6	49.1

To see how INDIAN ENERGY EXCHANGE has performed over the last 5 years, please visit here.

INDIAN ENERGY EXCHANGE Share Price Performance

Over the last one year, INDIAN ENERGY EXCHANGE share price has moved up from Rs 123.7 to Rs 180.8, registering a gain of Rs 57.1 or around 46.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,101.4 (up 0.1%). Over the last one year it has moved up from 3,972.3 to 8,101.4, a gain of 4,129 points (up 103.9%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for INDIAN ENERGY EXCHANGE and quarterly results for INDIAN ENERGY EXCHANGE )