INSOLATION ENERGY 2023-24 Annual Report Analysis

Thu, 14 Nov

INSOLATION 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.

INSOLATION ENERGY Income Statement Analysis

• Operating income during the year rose 163.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 332.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.0% in FY24 as against 6.7% in FY23.
• Depreciation charges increased by 202.3% and finance costs increased by 216.7% YoY, respectively.
• Other income grew by 459.1% YoY.
• Net profit for the year grew by 419.3% YoY.
• Net profit margins during the year grew from 3.8% in FY23 to 7.5% in FY24.

INSOLATION ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,794	7,372	163.9%
Other income	Rs m	7	42	459.1%
Total Revenues	Rs m	2,801	7,413	164.7%
Gross profit	Rs m	187	810	332.6%
Depreciation	Rs m	23	71	202.3%
Interest	Rs m	33	105	216.7%
Profit before tax	Rs m	138	675	389.4%
Tax	Rs m	31	121	287.0%
Profit after tax	Rs m	107	555	419.3%
Gross profit margin	%	6.7	11.0
Effective tax rate	%	22.6	17.9
Net profit margin	%	3.8	7.5

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INSOLATION ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 725 million in FY23, thereby witnessing an increase of 84.5%.
• Long-term debt down at Rs 295 million as compared to Rs 328 million during FY23, a fall of 10.1%.
• Current assets rose 77% and stood at Rs 2 billion, while fixed assets rose 48% and stood at Rs 608 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 71%.

INSOLATION ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	529	1,083	104.9
Current Liabilities	Rs m	725	1,338	84.5
Long-term Debt	Rs m	328	295	-10.1
Total Liabilities	Rs m	1,613	2,752	70.6
Current assets	Rs m	1,195	2,111	76.7
Fixed Assets	Rs m	410	608	48.2
Total Assets	Rs m	1,613	2,752	70.6

INSOLATION ENERGY Cash Flow Statement Analysis

• INSOLATION ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 610 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -169 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -90 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 351 million from the Rs 150 million net cash flows seen during FY23.

INSOLATION 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	-14	610	-
Cash Flow from Investing Activities	Rs m	-290	-169	-
Cash Flow from Financing Activities	Rs m	454	-90	-
Net Cash Flow	Rs m	150	351	134.6%

Current Valuations for INSOLATION ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an improvement from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,004.8, stands at 150.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 77.0 times, while the price to sales ratio stands at 11.3 times.
• The company's price to cash flow (P/CF) ratio stood at 31.1 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	134.1	353.9
TTM Earnings per share	Rs	5.1	26.6
Diluted earnings per share	Rs	5.1	26.6
Price to Cash Flow	x	20.1	31.1
TTM P/E ratio	x	24.6	150.4
Price / Book Value ratio	x	4.7	18.0
Market Cap	Rs m	2,511	19,462
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INSOLATION ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.6x 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 7.4x during FY24, from 5.2x 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 51.2% during FY24, from 20.2% 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 56.6% during FY24, from 20.0% 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 24.0% during FY24, from 8.7% 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	1.6	1.6
Debtors’ Days	Days	371	257
Interest coverage	x	5.2	7.4
Debt to equity ratio	x	0.6	0.3
Return on assets	%	8.7	24.0
Return on equity	%	20.2	51.2
Return on capital employed	%	20.0	56.6

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

INSOLATION ENERGY Share Price Performance

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