REFEX RENEWABLES 2023-24 Annual Report Analysis

Mon, 4 Nov

REFEX RENEWABLES 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.

REFEX RENEWABLES Income Statement Analysis

• Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 418.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 58.2% in FY24 as against 11.1% in FY23.
• Depreciation charges increased by 9.8% and finance costs increased by 18.8% YoY, respectively.
• Other income declined by 66.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 39.3% in FY23 to 45.2% in FY24.

REFEX RENEWABLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	766	761	-0.7%
Other income	Rs m	201	68	-66.2%
Total Revenues	Rs m	967	829	-14.3%
Gross profit	Rs m	85	443	418.1%
Depreciation	Rs m	161	176	9.8%
Interest	Rs m	351	417	18.8%
Profit before tax	Rs m	-226	-83	NA
Tax	Rs m	75	261	247.1%
Profit after tax	Rs m	-301	-344	NA
Gross profit margin	%	11.1	58.2
Effective tax rate	%	-33.3	-313.6
Net profit margin	%	-39.3	-45.2

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REFEX RENEWABLES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 755 million as compared to Rs 988 million in FY23, thereby witnessing an decrease of -23.6%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY23, a fall of 13.2%.
• Current assets fell 66% and stood at Rs 337 million, while fixed assets fell 6% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 6 billion during FY23, thereby witnessing a fall of 15%.

REFEX RENEWABLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	375	129	-65.8
Current Liabilities	Rs m	988	755	-23.6
Long-term Debt	Rs m	4,473	3,883	-13.2
Total Liabilities	Rs m	6,017	5,090	-15.4
Current assets	Rs m	981	337	-65.6
Fixed Assets	Rs m	5,036	4,753	-5.6
Total Assets	Rs m	6,017	5,090	-15.4

REFEX RENEWABLES Cash Flow Statement Analysis

• REFEX RENEWABLES'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 -145 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -6 million from the Rs -34 million net cash flows seen during FY23.

REFEX RENEWABLES 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	-546	1,205	-
Cash Flow from Investing Activities	Rs m	-732	-145	-
Cash Flow from Financing Activities	Rs m	1,248	-1,066	-
Net Cash Flow	Rs m	-34	-6	-

Current Valuations for REFEX RENEWABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -76.7, an decline from the EPS of Rs -67.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,121.1, stands at -12.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 39.2 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at -12.9 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	170.7	169.5
TTM Earnings per share	Rs	-67.0	-76.7
Diluted earnings per share	Rs	-67.0	-76.7
Price to Cash Flow	x	-11.8	-12.9
TTM P/E ratio	x	-5.5	-12.5
Price / Book Value ratio	x	5.2	16.8
Market Cap	Rs m	1,947	2,162
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for REFEX RENEWABLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY24, from 1.0x 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 0.8x during FY24, from 0.4x 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 declined and down at -267.8% during FY24, from -80.1% 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 8.3% during FY24, from 2.6% 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 1.4% during FY24, from 0.8% 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	1.0	0.4
Debtors’ Days	Days	303,126	32,983
Interest coverage	x	0.4	0.8
Debt to equity ratio	x	11.9	30.2
Return on assets	%	0.8	1.4
Return on equity	%	-80.1	-267.8
Return on capital employed	%	2.6	8.3

To see how REFEX RENEWABLES has performed over the last 5 years, please visit here.

REFEX RENEWABLES Share Price Performance

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(To know more, check out historical annual results for REFEX RENEWABLES and quarterly results for REFEX RENEWABLES)