POWER GRID 2023-24 Annual Report Analysis

Fri, 2 Aug

POWER GRID 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.

POWER GRID Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 85.8% in FY24 as against 87.0% in FY23.
• Depreciation charges decreased by 1.8% and finance costs decreased by 8.9% YoY, respectively.
• Other income grew by 6.8% YoY.
• Net profit for the year grew by 1.0% YoY.
• Net profit margins during the year grew from 33.8% in FY23 to 34.0% in FY24.

POWER GRID Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	456,031	458,431	0.5%
Other income	Rs m	10,029	10,707	6.8%
Total Revenues	Rs m	466,060	469,138	0.7%
Gross profit	Rs m	396,661	393,112	-0.9%
Depreciation	Rs m	133,334	130,953	-1.8%
Interest	Rs m	96,339	87,728	-8.9%
Profit before tax	Rs m	177,016	185,140	4.6%
Tax	Rs m	22,819	29,408	28.9%
Profit after tax	Rs m	154,197	155,732	1.0%
Gross profit margin	%	87.0	85.8
Effective tax rate	%	12.9	15.9
Net profit margin	%	33.8	34.0

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

POWER GRID Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 407 billion as compared to Rs 413 billion in FY23, thereby witnessing an decrease of -1.4%.
• Long-term debt down at Rs 1,051 billion as compared to Rs 1,139 billion during FY23, a fall of 7.7%.
• Current assets fell 10% and stood at Rs 333 billion, while fixed assets fell 1% and stood at Rs 2,238 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2,571 billion as against Rs 2,634 billion during FY23, thereby witnessing a fall of 2%.

POWER GRID Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	830,263	871,451	5.0
Current Liabilities	Rs m	412,706	406,880	-1.4
Long-term Debt	Rs m	1,138,913	1,050,670	-7.7
Total Liabilities	Rs m	2,634,238	2,570,960	-2.4
Current assets	Rs m	371,284	333,197	-10.3
Fixed Assets	Rs m	2,262,954	2,237,763	-1.1
Total Assets	Rs m	2,634,238	2,570,960	-2.4

POWER GRID Cash Flow Statement Analysis

• POWER GRID's cash flow from operating activities (CFO) during FY24 stood at Rs 373 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -131 billion, an improvement of 83.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -259 billion, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 billion from the Rs 26 billion net cash flows seen during FY23.

POWER GRID 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	402,029	372,895	-7.2%
Cash Flow from Investing Activities	Rs m	-71,383	-131,144	-
Cash Flow from Financing Activities	Rs m	-304,496	-259,033	-
Net Cash Flow	Rs m	26,151	-17,282	-

Current Valuations for POWER GRID

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an decline from the EPS of Rs 22.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 361.3, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	65.4	49.3
TTM Earnings per share	Rs	22.1	16.7
Diluted earnings per share	Rs	16.6	16.7
Price to Cash Flow	x	5.5	7.6
TTM P/E ratio	x	10.3	21.0
Price / Book Value ratio	x	1.8	2.5
Market Cap	Rs m	1,515,766	2,170,780
Dividends per share (Unadj.)	Rs	14.8	11.3

Ratio Analysis for POWER GRID

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 0.9x 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 3.1x during FY24, from 2.8x 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 17.9% during FY24, from 18.6% 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 14.2% during FY24, from 13.9% 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 9.5% during FY24, from 9.5% 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	0.9	0.8
Debtors’ Days	Days	12	9
Interest coverage	x	2.8	3.1
Debt to equity ratio	x	1.4	1.2
Return on assets	%	9.5	9.5
Return on equity	%	18.6	17.9
Return on capital employed	%	13.9	14.2

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

POWER GRID Share Price Performance

Over the last one year, POWER GRID share price has moved down from Rs 186.5 to Rs 0.0, registering a loss of Rs 186.5 or around 100.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,489.8 (down 0.3%). Over the last one year it has moved up from 4,264.8 to 8,489.8, a gain of 4,225 points (up 99.1%).

Overall, the NIFTY 50 is down 0.9% over the year.

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