POWERGRID INVIT 2023-24 Annual Report Analysis

Mon, 3 Jun

POWERGRID INVIT 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.

POWERGRID INVIT Income Statement Analysis

• Operating income during the year fell 1.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 92.2% in FY24 as against 93.1% in FY23.
• Depreciation charges decreased by 96.6% and finance costs increased by 13.1% YoY, respectively.
• Other income grew by 26.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 34.7% in FY23 to 77.6% in FY24.

POWERGRID INVIT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,858	12,653	-1.6%
Other income	Rs m	295	374	26.7%
Total Revenues	Rs m	13,153	13,027	-1.0%
Gross profit	Rs m	11,969	11,660	-2.6%
Depreciation	Rs m	18,246	613	-96.6%
Interest	Rs m	414	469	13.1%
Profit before tax	Rs m	-6,397	10,953	NA
Tax	Rs m	-1,933	1,135	NA
Profit after tax	Rs m	-4,464	9,817	NA
Gross profit margin	%	93.1	92.2
Effective tax rate	%	30.2	10.4
Net profit margin	%	-34.7	77.6

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POWERGRID INVIT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 7.7%.
• Long-term debt down at Rs 6 billion as compared to Rs 6 billion during FY23, a fall of 0.5%.
• Current assets rose 1% and stood at Rs 11 billion, while fixed assets fell 0% and stood at Rs 93 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 103 billion as against Rs 104 billion during FY23, thereby witnessing a fall of 0%.

POWERGRID INVIT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	77,065	75,412	-2.1
Current Liabilities	Rs m	1,926	2,073	7.7
Long-term Debt	Rs m	5,692	5,664	-0.5
Total Liabilities	Rs m	103,670	103,420	-0.2
Current assets	Rs m	10,540	10,641	1.0
Fixed Assets	Rs m	93,131	92,780	-0.4
Total Assets	Rs m	103,670	103,420	-0.2

POWERGRID INVIT Cash Flow Statement Analysis

• POWERGRID INVIT's cash flow from operating activities (CFO) during FY24 stood at Rs 12 billion, an improvement of 4.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 102 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -12 billion, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 583 million from the Rs -2 billion net cash flows seen during FY23.

POWERGRID INVIT 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	11,806	12,300	4.2%
Cash Flow from Investing Activities	Rs m	-1,538	102	-
Cash Flow from Financing Activities	Rs m	-11,951	-11,819	-
Net Cash Flow	Rs m	-1,683	583	-

Current Valuations for POWERGRID INVIT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs -4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 96.0, stands at 8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	14.1	13.9
TTM Earnings per share	Rs	-4.9	10.8
Diluted earnings per share	Rs	-4.9	10.8
Price to Cash Flow	x	8.1	9.5
TTM P/E ratio	x	-25.0	8.9
Price / Book Value ratio	x	1.6	1.3
Market Cap	Rs m	124,925	99,572
Dividends per share (Unadj.)	Rs	12.0	12.0

Ratio Analysis for POWERGRID INVIT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.1x during FY24, from 5.5x 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 24.4x during FY24, from -14.4x 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 13.0% during FY24, from -5.8% 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 14.1% during FY24, from -7.2% 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 9.9% 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	5.5	5.1
Debtors’ Days	Days	93	78
Interest coverage	x	-14.4	24.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-3.9	9.9
Return on equity	%	-5.8	13.0
Return on capital employed	%	-7.2	14.1

To see how POWERGRID INVIT has performed over the last 5 years, please visit here.

POWERGRID INVIT Share Price Performance

Over the last one year, POWERGRID INVIT share price has moved down from Rs 119.9 to Rs 96.0, registering a loss of Rs 24.0 or around 20.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,193.5 (up 6.4%). Over the last one year it has moved up from 3,825.7 to 8,193.5, a gain of 4,368 points (up 114.2%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for POWERGRID INVIT and quarterly results for POWERGRID INVIT)