SOLEX ENERGY 2023-24 Annual Report Analysis

Tue, 29 Oct

SOLEX ENERGY 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.

SOLEX ENERGY Income Statement Analysis

• Operating income during the year rose 126.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 150.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.8% in FY24 as against 7.0% in FY23.
• Depreciation charges increased by 86.6% and finance costs increased by 87.2% YoY, respectively.
• Other income declined by 21.7% YoY.
• Net profit for the year grew by 222.2% YoY.
• Net profit margins during the year grew from 1.7% in FY23 to 2.4% in FY24.

SOLEX ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,617	3,659	126.3%
Other income	Rs m	27	21	-21.7%
Total Revenues	Rs m	1,644	3,680	123.9%
Gross profit	Rs m	113	284	150.9%
Depreciation	Rs m	45	85	86.6%
Interest	Rs m	56	105	87.2%
Profit before tax	Rs m	39	115	199.6%
Tax	Rs m	11	28	146.0%
Profit after tax	Rs m	27	87	222.2%
Gross profit margin	%	7.0	7.8
Effective tax rate	%	29.6	24.3
Net profit margin	%	1.7	2.4

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

SOLEX ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 544 million in FY23, thereby witnessing an increase of 111.3%.
• Long-term debt stood at Rs 472 million as compared to Rs 447 million during FY23, a growth of 5.5%.
• Current assets rose 83% and stood at Rs 2 billion, while fixed assets rose 4% and stood at Rs 604 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 51%.

SOLEX ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	376	462	22.9
Current Liabilities	Rs m	544	1,150	111.3
Long-term Debt	Rs m	447	472	5.5
Total Liabilities	Rs m	1,408	2,120	50.6
Current assets	Rs m	827	1,515	83.2
Fixed Assets	Rs m	581	604	4.1
Total Assets	Rs m	1,408	2,120	50.6

SOLEX ENERGY Cash Flow Statement Analysis

• SOLEX ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 17 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -212 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 196 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs -3 million net cash flows seen during FY23.

SOLEX ENERGY 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	-62	17	-
Cash Flow from Investing Activities	Rs m	-348	-212	-
Cash Flow from Financing Activities	Rs m	408	196	-52.0%
Net Cash Flow	Rs m	-3	1	-

Current Valuations for SOLEX ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.9, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,375.0, stands at 170.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 32.1 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 31.6 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	202.1	457.4
TTM Earnings per share	Rs	3.4	10.9
Diluted earnings per share	Rs	2.5	8.1
Price to Cash Flow	x	0.0	31.6
TTM P/E ratio	x	0.0	170.0
Price / Book Value ratio	x	6.3	11.8
Market Cap	Rs m	2,387	5,434
Dividends per share (Unadj.)	Rs	0.2	0.6

Ratio Analysis for SOLEX ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 2.1x during FY24, from 1.7x 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 18.9% during FY24, from 7.2% 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 23.6% during FY24, from 11.5% 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 9.1% during FY24, from 5.9% 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	1.5	1.3
Debtors’ Days	Days	683	466
Interest coverage	x	1.7	2.1
Debt to equity ratio	x	1.2	1.0
Return on assets	%	5.9	9.1
Return on equity	%	7.2	18.9
Return on capital employed	%	11.5	23.6

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

SOLEX ENERGY Share Price Performance

Over the last one year, SOLEX ENERGY share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

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