SWAN ENERGY 2023-24 Annual Report Analysis

Mon, 9 Sep

SWAN 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.

SWAN ENERGY Income Statement Analysis

• Operating income during the year rose 248.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 275.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.3% in FY24 as against 16.1% in FY23.
• Depreciation charges increased by 41.3% and finance costs increased by 1.6% YoY, respectively.
• Other income grew by 670.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.2% in FY23 to 11.7% in FY24.

SWAN ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,381	50,171	248.9%
Other income	Rs m	108	829	670.1%
Total Revenues	Rs m	14,489	51,001	252.0%
Gross profit	Rs m	2,311	8,677	275.4%
Depreciation	Rs m	813	1,150	41.3%
Interest	Rs m	2,228	2,263	1.6%
Profit before tax	Rs m	-622	6,093	NA
Tax	Rs m	-12	234	NA
Profit after tax	Rs m	-610	5,860	NA
Gross profit margin	%	16.1	17.3
Effective tax rate	%	1.9	3.8
Net profit margin	%	-4.2	11.7

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SWAN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 13 billion as compared to Rs 23 billion in FY23, thereby witnessing an decrease of -41.4%.
• Long-term debt down at Rs 25 billion as compared to Rs 39 billion during FY23, a fall of 36.0%.
• Current assets rose 63% and stood at Rs 41 billion, while fixed assets rose 5% and stood at Rs 80 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 121 billion as against Rs 102 billion during FY23, thereby witnessing a growth of 19%.

SWAN ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,837	62,789	174.9
Current Liabilities	Rs m	22,593	13,235	-41.4
Long-term Debt	Rs m	39,279	25,137	-36.0
Total Liabilities	Rs m	101,775	121,426	19.3
Current assets	Rs m	25,425	41,363	62.7
Fixed Assets	Rs m	76,351	80,063	4.9
Total Assets	Rs m	101,775	121,426	19.3

SWAN ENERGY Cash Flow Statement Analysis

• SWAN ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 259 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 16 billion, an improvement of 168% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 11 billion from the Rs -8 billion net cash flows seen during FY23.

SWAN 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	-2,347	259	-
Cash Flow from Investing Activities	Rs m	-11,162	-5,116	-
Cash Flow from Financing Activities	Rs m	5,985	16,037	167.9%
Net Cash Flow	Rs m	-7,524	11,179	-

Current Valuations for SWAN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.7, an improvement from the EPS of Rs -2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 617.7, stands at 27.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 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	54.5	160.1
TTM Earnings per share	Rs	-2.3	18.7
Diluted earnings per share	Rs	-1.9	18.7
Price to Cash Flow	x	330.9	22.2
TTM P/E ratio	x	-110.0	27.3
Price / Book Value ratio	x	3.2	2.5
Market Cap	Rs m	73,804	155,310
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SWAN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY24, from 1.1x 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 3.7x during FY24, from 0.7x 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 9.3% during FY24, from -2.7% 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 improved and stood at 9.5% 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 6.7% during FY24, from 1.6% 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	1.1	3.1
Debtors’ Days	Days	4,446	1,393
Interest coverage	x	0.7	3.7
Debt to equity ratio	x	1.7	0.4
Return on assets	%	1.6	6.7
Return on equity	%	-2.7	9.3
Return on capital employed	%	2.6	9.5

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

SWAN ENERGY Share Price Performance

Over the last one year, SWAN ENERGY share price has moved up from Rs 301.1 to Rs 617.7, registering a gain of Rs 316.6 or around 105.1%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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