ORIENT GREEN POWER 2023-24 Annual Report Analysis

Mon, 10 Jun

ORIENT GREEN POWER 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.

ORIENT GREEN POWER Income Statement Analysis

• Operating income during the year rose 4.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 70.6% in FY24 as against 74.8% in FY23.
• Depreciation charges decreased by 0.7% and finance costs decreased by 25.9% YoY, respectively.
• Other income declined by 70.0% YoY.
• Net profit for the year grew by 9.4% YoY.
• Net profit margins during the year grew from 13.6% in FY23 to 14.2% in FY24.

ORIENT GREEN POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,583	2,710	4.9%
Other income	Rs m	332	100	-70.0%
Total Revenues	Rs m	2,916	2,809	-3.6%
Gross profit	Rs m	1,931	1,913	-1.0%
Depreciation	Rs m	830	823	-0.7%
Interest	Rs m	1,083	802	-25.9%
Profit before tax	Rs m	351	387	10.2%
Tax	Rs m	0	3	0.0
Profit after tax	Rs m	351	384	9.4%
Gross profit margin	%	74.8	70.6
Effective tax rate	%	0.0	0.7
Net profit margin	%	13.6	14.2

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ORIENT GREEN POWER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -13.3%.
• Long-term debt down at Rs 6 billion as compared to Rs 9 billion during FY23, a fall of 33.6%.
• Current assets fell 5% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 17 billion during FY23, thereby witnessing a fall of 4%.

ORIENT GREEN POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,236	7,881	50.5
Current Liabilities	Rs m	1,370	1,188	-13.3
Long-term Debt	Rs m	9,487	6,301	-33.6
Total Liabilities	Rs m	16,921	16,176	-4.4
Current assets	Rs m	2,026	1,921	-5.2
Fixed Assets	Rs m	14,773	14,134	-4.3
Total Assets	Rs m	16,921	16,176	-4.4

ORIENT GREEN POWER Cash Flow Statement Analysis

• ORIENT GREEN POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 9.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -17 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 585 million from the Rs 27 million net cash flows seen during FY23.

ORIENT GREEN POWER 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	2,287	2,495	9.1%
Cash Flow from Investing Activities	Rs m	31	-17	-
Cash Flow from Financing Activities	Rs m	-2,293	-1,894	-
Net Cash Flow	Rs m	27	585	2,050.4%

Current Valuations for ORIENT GREEN POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 20.2, stands at 51.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	3.4	2.8
TTM Earnings per share	Rs	0.5	0.4
Diluted earnings per share	Rs	0.4	0.4
Price to Cash Flow	x	7.5	17.4
TTM P/E ratio	x	25.3	51.5
Price / Book Value ratio	x	1.5	2.7
Market Cap	Rs m	7,676	21,027
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ORIENT GREEN POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x 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 1.5x during FY24, from 1.3x 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 4.9% during FY24, from 6.7% 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 declined and down at 8.4% during FY24, from 9.7% 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 7.3% during FY24, from 8.5% 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	1.5	1.6
Debtors’ Days	Days	1,593	1,096
Interest coverage	x	1.3	1.5
Debt to equity ratio	x	1.8	0.8
Return on assets	%	8.5	7.3
Return on equity	%	6.7	4.9
Return on capital employed	%	9.7	8.4

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

ORIENT GREEN POWER Share Price Performance

Over the last one year, ORIENT GREEN POWER share price has moved up from Rs 10.8 to Rs 20.2, registering a gain of Rs 9.4 or around 87.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,789.3 (up 1.6%). Over the last one year it has moved up from 3,954.7 to 7,789.3, a gain of 3,835 points (up 97.0%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for ORIENT GREEN POWER and quarterly results for ORIENT GREEN POWER)