Nayara’s energy has taken a turn for the road to success after declaring its financial report for the year 2023. Nayara has been following the path of sustainable energy since the beginning. With a market valuation of 39720.73 crores and an upward growth approach, Nayara is ready to leave its footprint for the coming years in the field of energy and power. In this blog, we will discuss its financial report for the year 2023 and its effects on unlisted shares of the company.
Financial Performance of Nayara During 2022-2023
The provided information pertains to a company’s financial performance for the financial year ending March 31, 2023, compared to the previous financial year ending March 31, 2022. Here are the key points:
Revenue from Operations:
In the financial year ending March 31, 2023, the company’s revenue from operations was 1,378,213 million, an increase compared to 1,196,894 million in the previous financial year.
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation): The EBITDA for FY 2022-23 was significantly higher at I 183,112 million, representing a 261% increase from 50,675 million in the preceding financial year (FY 2021-22).
Performance:
The company’s strong financial year performance was attributed to external market conditions and optimal crude sourcing strategies. However, these benefits were partially offset by under-recoveries on retail sales of MS (Motor Spirit) and HSD (High-Speed Diesel) and the levy of special additional excise duty on the export of petroleum products.
Performance Improvement Program:
The company’s “One Lakshya” performance and profitability improvement program was crucial in achieving exceptional results despite a challenging business environment.
Profit After Tax (PAT): The company reported a Profit After Tax (PAT) of I 95,916 million for FY 2022-23, a substantial increase from 10,299 million in the previous financial year.
Dividend and General Reserve:
The Board of Directors decided not to recommend any dividend for the financial year ending March 31, 2023. However, Nayara unlisted share price increased because of its increased profits.
Effects Of Nayara’s Financials On Its Unlisted Shares
The financial performance of Nayara Energy for the fiscal year ending March 31, 2023, has had a notable impact on its unlisted shares, which are currently available for purchase at INR 300.0 per share. This increase in share price reflects the company’s impressive financial results, particularly in the context of unlisted shares. Read about factors that influenced Nayara energy share price in grey market:
Profit Surge:
Nayara Energy reported a substantial increase in its Profit After Tax (PAT) for FY 2022-23, reaching INR 95,916 million, significantly higher than the previous year’s figure of INR 10,299 million. This surge in profits has attracted investors’ attention, leading to a boost in the demand for its unlisted shares.
Positive Market Sentiment:
Factors like optimal crude sourcing strategies drive the company’s performance, and its “One Lakshya” improvement program has created a positive sentiment around Nayara Energy. This optimism has translated into higher unlisted share prices as investors seek to capitalise on the company’s growth potential.
Financial Ratios:
Key financial indicators, such as the Price to Earnings ratio of 5.0 and the Price/Book ratio of 2.3, indicate that Nayara Energy’s unlisted shares are trading at attractive valuations, making them an appealing investment option for those interested in the energy sector.
Nayara Energy’s impressive financial performance in FY 2022-23 has positively impacted the demand and pricing of Nayara’s unlisted shares. Investors are impressed by the company’s growth potential and favourable valuation metrics, contributing to the increased interest in these shares.
Nayara Energy Plans For Growth
Nayara Energy has clear plans for growth and sustainability. Here are the key points outlining the strategies they follow:
Petrochemical Expansion:
Nayara Energy made significant progress in entering the petrochemical sector. During a turnaround, they revamped the Fluid Catalytic Cracking Unit (FCCU) and completed the Performance Guarantee Test Run of the Petrochemical Refinery Unit (PRU) in May 2023. Their goal is to deploy the Polypropylene (PP) Unit in FY 2023-24, marking the beginning of a transformative journey towards growth.
Green Transition:
Nayara Energy recognised the green transition as a unique, sustainable and inclusive growth opportunity. They already had solar installations at over 1,000 retail outlets and two Nayara-owned depots. They planned to install a pilot capacity of 10 MW solar generation at the Vadinar refinery.
Solar Initiatives:
In 2022, Nayara Energy made solid progress towards establishing a 10 MW solar plant at the Vadinar refinery in Gujarat. This initiative aimed to mitigate approximately 20,000 tCO2e annually. They also planned to commission a 500 kW captive solar power plant at their newly established rail-fed fuel depot in Pali, Rajasthan, further reducing emissions by about 730 tCO2e per year.
Green Hydrogen Exploration:
Nayara Energy was actively exploring pilot projects for green hydrogen production to meet their hydrogen requirements, aligning with the Government of India’s Hydrogen Mission.