INDIA GRID TRUST 2023-24 Annual Report Analysis

Mon, 29 Jul

INDIA GRID TRUST 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.

INDIA GRID TRUST Income Statement Analysis

• Operating income during the year rose 24.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 85.7% in FY24 as against 90.4% in FY23.
• Depreciation charges increased by 33.4% and finance costs increased by 29.4% YoY, respectively.
• Other income declined by 0.8% YoY.
• Net profit for the year declined by 36.3% YoY.
• Net profit margins during the year declined from 19.5% in FY23 to 10.0% in FY24.

INDIA GRID TRUST Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,922	29,656	24.0%
Other income	Rs m	221	219	-0.8%
Total Revenues	Rs m	24,143	29,875	23.7%
Gross profit	Rs m	21,616	25,402	17.5%
Depreciation	Rs m	7,041	9,395	33.4%
Interest	Rs m	10,109	13,077	29.4%
Profit before tax	Rs m	4,688	3,150	-32.8%
Tax	Rs m	30	185	522.4%
Profit after tax	Rs m	4,658	2,965	-36.3%
Gross profit margin	%	90.4	85.7
Effective tax rate	%	0.6	5.9
Net profit margin	%	19.5	10.0

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INDIA GRID TRUST Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 18 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 23.7%.
• Long-term debt stood at Rs 181 billion as compared to Rs 136 billion during FY23, a growth of 33.6%.
• Current assets rose 25% and stood at Rs 24 billion, while fixed assets rose 28% and stood at Rs 234 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 258 billion as against Rs 202 billion during FY23, thereby witnessing a growth of 27%.

INDIA GRID TRUST Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	49,577	52,905	6.7
Current Liabilities	Rs m	14,675	18,152	23.7
Long-term Debt	Rs m	135,675	181,259	33.6
Total Liabilities	Rs m	202,124	257,571	27.4
Current assets	Rs m	19,229	24,064	25.1
Fixed Assets	Rs m	182,895	233,507	27.7
Total Assets	Rs m	202,124	257,571	27.4

INDIA GRID TRUST Cash Flow Statement Analysis

• INDIA GRID TRUST's cash flow from operating activities (CFO) during FY24 stood at Rs 27 billion, an improvement of 30.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -61 billion, an improvement of 188.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 34 billion, an improvement of 525% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -829 million from the Rs -9 billion net cash flows seen during FY23.

INDIA GRID TRUST 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	20,371	26,648	30.8%
Cash Flow from Investing Activities	Rs m	-21,192	-61,037	-
Cash Flow from Financing Activities	Rs m	-7,899	33,559	-
Net Cash Flow	Rs m	-8,720	-829	-

Current Valuations for INDIA GRID TRUST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 141.9, stands at 37.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 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	34.2	37.8
TTM Earnings per share	Rs	6.7	3.8
Diluted earnings per share	Rs	5.9	3.8
Price to Cash Flow	x	8.0	8.3
TTM P/E ratio	x	20.1	37.5
Price / Book Value ratio	x	2.0	1.9
Market Cap	Rs m	98,683	102,861
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDIA GRID TRUST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 deteriorated and stood at 1.2x during FY24, from 1.5x 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 5.6% during FY24, from 9.4% 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 6.9% during FY24, from 8.0% 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 declined and down at 6.2% during FY24, from 7.3% 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	1.3
Debtors’ Days	Days	64	55
Interest coverage	x	1.5	1.2
Debt to equity ratio	x	2.7	3.4
Return on assets	%	7.3	6.2
Return on equity	%	9.4	5.6
Return on capital employed	%	8.0	6.9

To see how INDIA GRID TRUST has performed over the last 5 years, please visit here.

INDIA GRID TRUST Share Price Performance

Over the last one year, INDIA GRID TRUST share price has moved up from Rs 138.2 to Rs 141.9, registering a gain of Rs 3.7 or around 2.7%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for INDIA GRID TRUST and quarterly results for INDIA GRID TRUST)