SWELECT ENERGY SYSTEMS 2023-24 Annual Report Analysis

Mon, 8 Jul

SWELECT ENERGY SYSTEMS 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.

SWELECT ENERGY SYSTEMS Income Statement Analysis

• Operating income during the year fell 1.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 88.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 48.0% in FY24 as against 25.2% in FY23.
• Depreciation charges increased by 58.9% and finance costs increased by 71.8% YoY, respectively.
• Other income grew by 51.7% YoY.
• Net profit for the year grew by 87.7% YoY.
• Net profit margins during the year grew from 11.6% in FY23 to 22.1% in FY24.

SWELECT ENERGY SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,457	2,428	-1.2%
Other income	Rs m	241	365	51.7%
Total Revenues	Rs m	2,698	2,793	3.5%
Gross profit	Rs m	618	1,165	88.4%
Depreciation	Rs m	263	418	58.9%
Interest	Rs m	297	510	71.8%
Profit before tax	Rs m	299	602	101.4%
Tax	Rs m	14	67	383.3%
Profit after tax	Rs m	285	536	87.7%
Gross profit margin	%	25.2	48.0
Effective tax rate	%	4.6	11.1
Net profit margin	%	11.6	22.1

Don't Miss: Key Information for Long-term Investors

SWELECT ENERGY SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 26.0%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 3.4%.
• Current assets rose 18% and stood at Rs 9 billion, while fixed assets rose 4% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 12%.

SWELECT ENERGY SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,872	8,391	6.6
Current Liabilities	Rs m	4,411	5,557	26.0
Long-term Debt	Rs m	2,323	2,243	-3.4
Total Liabilities	Rs m	14,853	16,611	11.8
Current assets	Rs m	7,374	8,675	17.6
Fixed Assets	Rs m	7,479	7,793	4.2
Total Assets	Rs m	14,853	16,611	11.8

SWELECT ENERGY SYSTEMS Cash Flow Statement Analysis

• SWELECT ENERGY SYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 895 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -823 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 324 million, an improvement of 200% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 397 million from the Rs -1 billion net cash flows seen during FY23.

SWELECT ENERGY SYSTEMS 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	1,315	895	-31.9%
Cash Flow from Investing Activities	Rs m	-2,841	-823	-
Cash Flow from Financing Activities	Rs m	108	324	200.3%
Net Cash Flow	Rs m	-1,419	397	-

Current Valuations for SWELECT ENERGY SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.3, an improvement from the EPS of Rs 18.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,233.6, stands at 31.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	162.1	160.1
TTM Earnings per share	Rs	18.8	35.3
Diluted earnings per share	Rs	18.8	35.3
Price to Cash Flow	x	7.9	12.2
TTM P/E ratio	x	13.8	31.1
Price / Book Value ratio	x	0.7	1.4
Market Cap	Rs m	5,546	11,614
Dividends per share (Unadj.)	Rs	1.2	4.0

Ratio Analysis for SWELECT ENERGY SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.7x 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 2.2x during FY24, from 2.0x 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 6.4% during FY24, from 3.6% 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 10.5% during FY24, from 5.8% 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 6.3% during FY24, from 3.9% 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	1.7	1.6
Debtors’ Days	Days	995	783
Interest coverage	x	2.0	2.2
Debt to equity ratio	x	0.3	0.3
Return on assets	%	3.9	6.3
Return on equity	%	3.6	6.4
Return on capital employed	%	5.8	10.5

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

SWELECT ENERGY SYSTEMS Share Price Performance

Over the last one year, SWELECT ENERGY SYSTEMS share price has moved up from Rs 431.9 to Rs 1,233.6, registering a gain of Rs 801.7 or around 185.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,608.0 (up 0.6%). Over the last one year it has moved up from 40,670.4 to 75,608.0, a gain of 34,938 points (up 85.9%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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