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TD POWER 2023-24 Annual Report Analysis

Tue, 23 Jul

TD POWER 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.

TD POWER Income Statement Analysis

• Operating income during the year rose 14.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY24 as against 15.5% in FY23.
• Depreciation charges increased by 1.9% and finance costs decreased by 12.6% YoY, respectively.
• Other income declined by 18.0% YoY.
• Net profit for the year grew by 22.2% YoY.
• Net profit margins during the year grew from 11.1% in FY23 to 11.8% in FY24.

TD POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,723	10,005	14.7%
Other income	Rs m	198	162	-18.0%
Total Revenues	Rs m	8,921	10,167	14.0%
Gross profit	Rs m	1,350	1,710	26.7%
Depreciation	Rs m	207	211	1.9%
Interest	Rs m	45	39	-12.6%
Profit before tax	Rs m	1,295	1,622	25.2%
Tax	Rs m	327	439	34.0%
Profit after tax	Rs m	968	1,183	22.2%
Gross profit margin	%	15.5	17.1
Effective tax rate	%	25.3	27.0
Net profit margin	%	11.1	11.8

For Investors: Our Big Prediction

TD POWER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 12.3%.
• Current assets rose 18% and stood at Rs 8 billion, while fixed assets rose 6% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 15%.

TD POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,041	7,047	16.7
Current Liabilities	Rs m	2,896	3,252	12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,032	10,378	14.9
Current assets	Rs m	6,984	8,210	17.6
Fixed Assets	Rs m	2,048	2,169	5.9
Total Assets	Rs m	9,032	10,378	14.9

TD POWER Cash Flow Statement Analysis

• TD POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 840 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -326 million, an improvement of 213.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -157 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 341 million from the Rs -133 million net cash flows seen during FY23.

TD POWER 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	886	840	-5.2%
Cash Flow from Investing Activities	Rs m	-104	-326	-
Cash Flow from Financing Activities	Rs m	-891	-157	-
Net Cash Flow	Rs m	-133	341	-

Current Valuations for TD POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 393.3, stands at 51.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 27.4 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	55.9	64.1
TTM Earnings per share	Rs	6.2	7.6
Diluted earnings per share	Rs	6.2	7.6
Price to Cash Flow	x	21.0	27.4
TTM P/E ratio	x	25.5	51.9
Price / Book Value ratio	x	3.1	5.4
Market Cap	Rs m	18,838	38,250
Dividends per share (Unadj.)	Rs	1.0	1.1

Ratio Analysis for TD POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.4x 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 42.3x during FY24, from 29.8x 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 improved and stood at 16.8% during FY24, from 16.0% 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 22.2% 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 11.8% during FY24, from 11.2% 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	2.4	2.5
Debtors’ Days	Days	1,126	1,122
Interest coverage	x	29.8	42.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	11.8
Return on equity	%	16.0	16.8
Return on capital employed	%	22.2	23.6

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

TD POWER Share Price Performance

Over the last one year, TD POWER share price has moved up from Rs 253.9 to Rs 393.3, registering a gain of Rs 139.5 or around 54.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,812.1 (down 0.3%). Over the last one year it has moved up from 4,020.3 to 7,812.1, a gain of 3,792 points (up 94.3%).

Overall, the S&P BSE SENSEX is up 19.7% over the year.

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