INOX GREEN ENERGY 2023-24 Annual Report Analysis

Tue, 10 Sep

INOX GREEN ENERGY 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.

INOX GREEN ENERGY Income Statement Analysis

• Operating income during the year fell 20.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.7% in FY24 as against 22.6% in FY23.
• Depreciation charges decreased by 19.4% and finance costs decreased by 65.0% YoY, respectively.
• Other income declined by 1.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 8.0% in FY23 to 5.7% in FY24.

INOX GREEN ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,542	2,020	-20.5%
Other income	Rs m	399	393	-1.7%
Total Revenues	Rs m	2,942	2,413	-18.0%
Gross profit	Rs m	575	540	-6.1%
Depreciation	Rs m	653	526	-19.4%
Interest	Rs m	710	248	-65.0%
Profit before tax	Rs m	-389	158	NA
Tax	Rs m	-185	43	NA
Profit after tax	Rs m	-204	115	NA
Gross profit margin	%	22.6	26.7
Effective tax rate	%	47.6	27.1
Net profit margin	%	-8.0	5.7

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INOX GREEN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -48.1%.
• Long-term debt down at Rs 50 million as compared to Rs 3 billion during FY23, a fall of 98.1%.
• Current assets rose 18% and stood at Rs 5 billion, while fixed assets fell 23% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 20 billion during FY23, thereby witnessing a fall of 10%.

INOX GREEN ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,274	14,003	24.2
Current Liabilities	Rs m	5,144	2,667	-48.1
Long-term Debt	Rs m	2,643	50	-98.1
Total Liabilities	Rs m	20,120	18,085	-10.1
Current assets	Rs m	4,102	4,850	18.3
Fixed Assets	Rs m	16,019	12,347	-22.9
Total Assets	Rs m	20,120	18,085	-10.1

INOX GREEN ENERGY Cash Flow Statement Analysis

• INOX GREEN ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 537 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 365 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -824 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 79 million from the Rs -417 million net cash flows seen during FY23.

INOX GREEN ENERGY 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	-263	537	-
Cash Flow from Investing Activities	Rs m	-52	365	-
Cash Flow from Financing Activities	Rs m	-102	-824	-
Net Cash Flow	Rs m	-417	79	-

Current Valuations for INOX GREEN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 205.8, stands at 316.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 29.9 times.
• The company's price to cash flow (P/CF) ratio stood at 43.0 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	8.7	6.9
TTM Earnings per share	Rs	-0.7	0.4
Diluted earnings per share	Rs	-0.5	0.3
Price to Cash Flow	x	35.8	43.0
TTM P/E ratio	x	-79.1	316.3
Price / Book Value ratio	x	1.3	2.0
Market Cap	Rs m	15,016	27,599
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INOX GREEN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 0.8x 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 1.6x during FY24, from 0.5x 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 improved and stood at 0.8% during FY24, from -1.8% 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 2.9% during FY24, from 2.3% 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 2.0% during FY24, from 2.5% 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	0.8	1.8
Debtors’ Days	Days	1,331	2,249
Interest coverage	x	0.5	1.6
Debt to equity ratio	x	0.2	0.0
Return on assets	%	2.5	2.0
Return on equity	%	-1.8	0.8
Return on capital employed	%	2.3	2.9

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

INOX GREEN ENERGY Share Price Performance

Over the last one year, INOX GREEN ENERGY share price has moved up from Rs 70.3 to Rs 205.8, registering a gain of Rs 135.5 or around 192.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,081.1 (down 0.3%). Over the last one year it has moved up from 19,485.3 to 31,081.1, a gain of 11,596 points (up 59.5%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for INOX GREEN ENERGY and quarterly results for INOX GREEN ENERGY)