KPI GREEN ENERGY 2023-24 Annual Report Analysis

Tue, 5 Nov

KPI 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.

KPI GREEN ENERGY Income Statement Analysis

• Operating income during the year rose 12.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.1% in FY24 as against 32.3% in FY23.
• Depreciation charges increased by 56.8% and finance costs increased by 63.3% YoY, respectively.
• Other income grew by 78.2% YoY.
• Net profit for the year declined by 5.4% YoY.
• Net profit margins during the year declined from 17.0% in FY23 to 14.3% in FY24.

KPI GREEN ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,438	7,238	12.4%
Other income	Rs m	32	58	78.2%
Total Revenues	Rs m	6,470	7,295	12.8%
Gross profit	Rs m	2,080	2,467	18.6%
Depreciation	Rs m	226	355	56.8%
Interest	Rs m	468	764	63.3%
Profit before tax	Rs m	1,419	1,406	-0.9%
Tax	Rs m	322	369	14.4%
Profit after tax	Rs m	1,096	1,037	-5.4%
Gross profit margin	%	32.3	34.1
Effective tax rate	%	22.7	26.2
Net profit margin	%	17.0	14.3

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KPI GREEN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 94.1%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY23, a fall of 7.7%.
• Current assets rose 148% and stood at Rs 11 billion, while fixed assets rose 24% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 68%.

KPI GREEN ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,579	7,483	190.1
Current Liabilities	Rs m	3,700	7,184	94.1
Long-term Debt	Rs m	4,091	3,777	-7.7
Total Liabilities	Rs m	12,550	21,057	67.8
Current assets	Rs m	4,445	11,020	147.9
Fixed Assets	Rs m	8,104	10,036	23.8
Total Assets	Rs m	12,550	21,057	67.8

KPI GREEN ENERGY Cash Flow Statement Analysis

• KPI GREEN ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 20.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 234% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 825 million from the Rs 268 million net cash flows seen during FY23.

KPI 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	1,594	-1,351	-
Cash Flow from Investing Activities	Rs m	-3,094	-3,730	-
Cash Flow from Financing Activities	Rs m	1,768	5,905	234.0%
Net Cash Flow	Rs m	268	825	208.2%

Current Valuations for KPI GREEN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an decline from the EPS of Rs 30.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 844.0, stands at 57.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.8 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at 51.4 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	178.2	120.1
TTM Earnings per share	Rs	30.3	17.2
Diluted earnings per share	Rs	8.4	7.9
Price to Cash Flow	x	27.7	51.4
TTM P/E ratio	x	33.4	57.0
Price / Book Value ratio	x	4.9	9.6
Market Cap	Rs m	12,676	71,554
Dividends per share (Unadj.)	Rs	1.4	0.4

Ratio Analysis for KPI GREEN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.2x 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 2.8x during FY24, from 4.0x 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 declined and down at 13.9% during FY24, from 42.5% 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 19.3% during FY24, from 28.3% 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 8.6% during FY24, from 12.5% 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	1.2	1.5
Debtors’ Days	Days	832	1,526
Interest coverage	x	4.0	2.8
Debt to equity ratio	x	1.6	0.5
Return on assets	%	12.5	8.6
Return on equity	%	42.5	13.9
Return on capital employed	%	28.3	19.3

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

KPI GREEN ENERGY Share Price Performance

Over the last one year, KPI GREEN ENERGY share price has moved up from Rs 578.4 to Rs 844.0, registering a gain of Rs 265.6 or around 45.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 68,635.3 (up 0.2%). Over the last one year it has moved up from 46,225.7 to 68,635.3, a gain of 22,410 points (up 48.5%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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