INOX WIND 2023-24 Annual Report Analysis

Tue, 10 Sep

INOX WIND 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 WIND Income Statement Analysis

• Operating income during the year rose 137.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.1% in FY24 as against 36.1% in FY23.
• Depreciation charges increased by 11.7% and finance costs decreased by 24.1% YoY, respectively.
• Other income grew by 1351.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 95.1% in FY23 to 2.9% in FY24.

INOX WIND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,330	17,432	137.8%
Other income	Rs m	213	3,091	1,351.0%
Total Revenues	Rs m	7,544	20,524	172.1%
Gross profit	Rs m	-2,645	19	NA
Depreciation	Rs m	984	1,099	11.7%
Interest	Rs m	3,270	2,483	-24.1%
Profit before tax	Rs m	-6,685	-472	NA
Tax	Rs m	283	36	-87.3%
Profit after tax	Rs m	-6,968	-508	NA
Gross profit margin	%	-36.1	0.1
Effective tax rate	%	-4.2	-7.6
Net profit margin	%	-95.1	-2.9

Dear Reader: If You Invest in Midcap Stocks, this is for You

INOX WIND Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 42 billion as compared to Rs 28 billion in FY23, thereby witnessing an increase of 46.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 9 billion during FY23, a fall of 79.3%.
• Current assets fell 1% and stood at Rs 31 billion, while fixed assets rose 21% and stood at Rs 29 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 62 billion as against Rs 55 billion during FY23, thereby witnessing a growth of 14%.

INOX WIND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,131	16,974	-0.9
Current Liabilities	Rs m	28,396	41,661	46.7
Long-term Debt	Rs m	8,876	1,835	-79.3
Total Liabilities	Rs m	54,803	62,419	13.9
Current assets	Rs m	30,875	30,591	-0.9
Fixed Assets	Rs m	23,929	29,029	21.3
Total Assets	Rs m	54,803	62,419	13.9

INOX WIND Cash Flow Statement Analysis

• INOX WIND's cash flow from operating activities (CFO) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 9 billion, an improvement of 7% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -94 million from the Rs -454 million net cash flows seen during FY23.

INOX WIND 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	-11,000	-3,598	-
Cash Flow from Investing Activities	Rs m	2,306	-5,277	-
Cash Flow from Financing Activities	Rs m	8,240	8,780	6.5%
Net Cash Flow	Rs m	-454	-94	-

Current Valuations for INOX WIND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an improvement from the EPS of Rs -21.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 240.6, stands at 526.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.5 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 51.0 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	22.5	53.5
TTM Earnings per share	Rs	-21.4	-1.6
Diluted earnings per share	Rs	-5.3	-0.4
Price to Cash Flow	x	-5.1	51.0
TTM P/E ratio	x	-4.5	526.9
Price / Book Value ratio	x	2.2	1.8
Market Cap	Rs m	38,429	30,171
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INOX WIND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY24, from 1.1x 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 0.8x during FY24, from -1.0x 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 -3.0% during FY24, from -40.7% 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 10.7% during FY24, from -13.1% 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 3.2% during FY24, from -6.7% 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	1.1	0.7
Debtors’ Days	Days	4,118	2,381
Interest coverage	x	-1.0	0.8
Debt to equity ratio	x	0.5	0.1
Return on assets	%	-6.7	3.2
Return on equity	%	-40.7	-3.0
Return on capital employed	%	-13.1	10.7

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

INOX WIND Share Price Performance

Over the last one year, INOX WIND share price has moved up from Rs 50.2 to Rs 240.6, registering a gain of Rs 190.4 or around 379.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,618.2 (up 1.2%). Over the last one year it has moved up from 47,604.0 to 71,618.2, a gain of 24,014 points (up 50.4%).

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

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