WEBSOL ENERGY 2023-24 Annual Report Analysis

Fri, 8 Nov

WEBSOL 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.

WEBSOL ENERGY Income Statement Analysis

• Operating income during the year rose 50.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 435.9% in FY24 as against 88.8% in FY23.
• Depreciation charges increased by 134.7% and finance costs increased by 25.9% YoY, respectively.
• Other income declined by 68.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 137.5% in FY23 to 467.8% in FY24.

WEBSOL ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	172	259	50.1%
Other income	Rs m	30	10	-68.2%
Total Revenues	Rs m	202	268	32.5%
Gross profit	Rs m	-153	-1,127	NA
Depreciation	Rs m	153	360	134.7%
Interest	Rs m	39	49	25.9%
Profit before tax	Rs m	-315	-1,527	NA
Tax	Rs m	-79	-317	NA
Profit after tax	Rs m	-237	-1,210	NA
Gross profit margin	%	-88.8	-435.9
Effective tax rate	%	24.9	20.8
Net profit margin	%	-137.5	-467.8

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WEBSOL ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 805 million as compared to Rs 579 million in FY23, thereby witnessing an increase of 39.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 76% and stood at Rs 311 million, while fixed assets rose 23% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 26%.

WEBSOL ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,913	1,077	-43.7
Current Liabilities	Rs m	579	805	39.1
Long-term Debt	Rs m	0	1,625	0.0
Total Liabilities	Rs m	2,671	3,373	26.3
Current assets	Rs m	177	311	76.0
Fixed Assets	Rs m	2,495	3,061	22.7
Total Assets	Rs m	2,671	3,373	26.3

WEBSOL ENERGY Cash Flow Statement Analysis

• WEBSOL ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 349 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 3,780.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 1,705% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 million from the Rs -37 million net cash flows seen during FY23.

WEBSOL 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	-84	349	-
Cash Flow from Investing Activities	Rs m	-58	-2,234	-
Cash Flow from Financing Activities	Rs m	105	1,893	1,705.0%
Net Cash Flow	Rs m	-37	8	-

Current Valuations for WEBSOL ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -28.7, an decline from the EPS of Rs -6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,503.2, stands at -131.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 58.9 times, while the price to sales ratio stands at 245.4 times.
• The company's price to cash flow (P/CF) ratio stood at -14.0 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	4.4	6.1
TTM Earnings per share	Rs	-6.1	-28.7
Diluted earnings per share	Rs	-5.6	-28.7
Price to Cash Flow	x	-39.2	-14.0
TTM P/E ratio	x	-13.8	-131.2
Price / Book Value ratio	x	2.1	11.0
Market Cap	Rs m	3,946	11,881
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WEBSOL ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY24, from 0.3x 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 deteriorated and stood at -30.1x during FY24, from -7.1x 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 -112.3% during FY24, from -12.4% 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 declined and down at -54.7% during FY24, from -14.4% 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 declined and down at -34.4% during FY24, from -7.4% 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	0.3	0.4
Debtors’ Days	Days	366	107
Interest coverage	x	-7.1	-30.1
Debt to equity ratio	x	0.0	1.5
Return on assets	%	-7.4	-34.4
Return on equity	%	-12.4	-112.3
Return on capital employed	%	-14.4	-54.7

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

WEBSOL ENERGY Share Price Performance

Over the last one year, WEBSOL ENERGY share price has moved up from Rs 205.8 to Rs 1,503.2, registering a gain of Rs 1,297.4 or around 630.6%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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