INDOWIND ENERGY 2022-23 Annual Report Analysis

Wed, 13 Dec

INDOWIND ENERGY has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

INDOWIND ENERGY Income Statement Analysis

• Operating income during the year rose 38.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.0% in FY23 as against 26.6% in FY22.
• Depreciation charges increased by 1.0% and finance costs increased by 16.2% YoY, respectively.
• Other income declined by 63.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.5% in FY22 to 56.7% in FY23.

INDOWIND ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	246	340	38.3%
Other income	Rs m	24	9	-63.0%
Total Revenues	Rs m	270	349	29.1%
Gross profit	Rs m	65	71	9.2%
Depreciation	Rs m	69	70	1.0%
Interest	Rs m	19	22	16.2%
Profit before tax	Rs m	2	-12	NA
Tax	Rs m	0	181	75,304.2%
Profit after tax	Rs m	1	-193	NA
Gross profit margin	%	26.6	21.0
Effective tax rate	%	15.9	-1,556.1
Net profit margin	%	0.5	-56.7

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INDOWIND ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 564 million as compared to Rs 453 million in FY22, thereby witnessing an increase of 24.6%.
• Long-term debt down at Rs 80 million as compared to Rs 118 million during FY22, a fall of 32.6%.
• Current assets rose 213% and stood at Rs 528 million, while fixed assets fell 4% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 9%.

INDOWIND ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,303	2,301	-0.1
Current Liabilities	Rs m	453	564	24.6
Long-term Debt	Rs m	118	80	-32.6
Total Liabilities	Rs m	2,881	3,133	8.7
Current assets	Rs m	169	528	212.9
Fixed Assets	Rs m	2,712	2,605	-4.0
Total Assets	Rs m	2,881	3,133	8.7

INDOWIND ENERGY Cash Flow Statement Analysis

• INDOWIND ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 48 million, an improvement of 81.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 151 million, an improvement of 333% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 202 million from the Rs -24 million net cash flows seen during FY22.

INDOWIND ENERGY Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	14	3	-77.0%
Cash Flow from Investing Activities	Rs m	26	48	81.9%
Cash Flow from Financing Activities	Rs m	-65	151	-
Net Cash Flow	Rs m	-24	202	-

Current Valuations for INDOWIND ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.8, an decline from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.2, stands at -14.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 7.6 times.
• The company's price to cash flow (P/CF) ratio stood at -12.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	2.7	3.2
TTM Earnings per share	Rs	0.0	-1.8
Diluted earnings per share	Rs	0.0	-1.8
Price to Cash Flow	x	26.1	-12.6
TTM P/E ratio	x	1,435.6	-14.3
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	2,147	1,551
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDOWIND ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.4x during FY22. 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 0.5x during FY23, from 1.1x during FY22. 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 -8.4% during FY23, from 0.1% during FY23. 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 0.4% during FY23, from 0.8% during FY22. 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 -5.4% during FY23, from 0.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.4	0.9
Debtors’ Days	Days	1,198	882
Interest coverage	x	1.1	0.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	0.7	-5.4
Return on equity	%	0.1	-8.4
Return on capital employed	%	0.8	0.4

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

INDOWIND ENERGY Share Price Performance

Over the last one year, INDOWIND ENERGY share price has moved up from Rs 14.3 to Rs 24.2, registering a gain of Rs 9.9 or around 69.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 21,729.2 (down 0.3%). Over the last one year it has moved up from 20,561.3 to 21,729.2, a gain of 1,168 points (up 5.7%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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