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Ntpc final

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NTPC -FINANCIAL STATEMENT ANALYSIS

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Ntpc final

  1. 1. NTPC - FINANCIAL STATEMENT ANALYSIS Presented By, Anirban Ghosh (A13001) Arbind Kumar (A13003) Ashish Ranjan (A13004) Debayan Dutta (A13006)
  2. 2. AGENDA About NTPC Shareholding pattern Director’s report and MD analysis Accounting policy Stock Analysis with NSE index and gold Balance Sheet P/L statement Cash flow analysis Ratio analysis
  3. 3. ABOUT NTPC
  4. 4. SHAREHOLDING PATTERN
  5. 5. Director’s report and MD analysis Financial yr 2012-13 has been a yr of achievements for NTPC as it performed well in various areas of its activities:  Addition of 4170 MW capacity (including 1000 mw though JV Companies),by far the highest ever any single yr and declared 4830 mw (including 1000 mw though JV Companies) on commercial Generation, also the highest ever in a yr awarded contracts for work of 8521mw  CAPEX of 19,925,53 cr which was 24.58% higher than previous yr 15,994 cr  100% realization of current bills from customers  Highest ever PAT of 12,619.39 cr, an increase of 36.81% over the previous yr's PAT of 9,223,73 cr and recorded Total income of 68,775,51 cr ,an increase of 6,07% as compared to 68,841.88 cr in FY2011-12  Highest ever Dividend of Rs.5.75/share (Rs, 3.75 paid in Mar'13 +special dividend of Rs,1.25/equity share +final dividend of Rs,0.75/share, subject to approval of the shareholders)  Approval of power ministry for implementation of North Karanpura Thermal Power Project(3*660mw) at existing site in Jharkhand by NTPC.  Withdrawal of de-allocation of Chatti-Bariatu, Chatti-Bariatu(South) and Kerandari Coal Block By coal Ministry ,which were de-allocated by ministry of coal in june'11
  6. 6. CONTD…  Disinvestment of 9.5% holding by GOVT OF INDIA in the Equity of Company, thus reducing its holding from 84.5% to 75%)  Commissioned first two solar power plants of 5mw each at Dadri and Andaman & Nicobar Islands.  Power sector is a key enabler for India’s economic growth. As per XII th investing plan, investment in electricity is projected to be 1/3 rd of the the projected investment in infrastructure sector.  Capacity utilization in the Indian power sector is measured by Plant Load Factor .The PLF has shown a decline during the financial year 2012-13 vis a vis financial year 2011-12.  The total power generation in the country has increased by 4.01% in the financial year 2012-13 compared to during last year.  In terms of per capita power consumption, India ranks lowest in the world. The per capita consumption has increased on a year -on- year basis.  The energy deficit increased on a year-on-year basis in financial year 2012-13 to 8.7% from 8.5% in financial year 2011-12.
  7. 7. ACCOUNTING POLICY NTPC BASIS OF PREPARATION LEASES TATA POWER The financial statements are prepared on accrual basis of accounting under historical cost convention in accordance with the generally accepted accounting principles in India and the relevant provisions of the company act 1956 including accounting standards notified there under. Assets taken on lease are capitalized at fair value or net present value of the minimum lease payments whichever is lower. Depreciation on the assets taken on lease is charged at the rate applicable to similar type of fixed assets It is prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year. Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards of ownership vest in the Company are classified as finance leases.
  8. 8. CONTD… NTPC TATA POWER INVESTMENTS Current Investments are valued at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. Premium paid on long term investments is amortised over the period remaining to maturity. Long term investments are carried at cost less provision, if any, for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value. FOREIGN EXCHANGE TRANSACTION Foreign currency transactions are initially recorded at the rates of exchange ruling at the date of transaction. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.
  9. 9. CONTD… NTPC TATA POWER INVENTORIES Inventories are valued at the lower of, cost determined on weighted average basis, and net realizable value. The demolition in the value of obsolete, unserviceable and surplus stores and spares is ascertained on review and provided for. FIXED ASSETS Fixed assets are carried with historical cost less accumulated depreciation/amortisation. Inventories of stores and spare parts and loose tools are valued at or below cost. Cost is ascertained on weighted average basis. Work-in-progress is valued at lower of cost and net realisable value and in the case of electronic products includes attributed profits. Cost includes material costs, labour and manufacturing overheads on the basis of absorption costing. All fixed assets are cost less depreciation. Cost comprises the purchase price and any other applicable costs.
  10. 10. STOCK ANALYSIS WITH NSE INDEX AND GOLD NTPC’s total return for six month is -20.76%. However for NSE the total return for the same period is -2.42% and for gold the total return is +8.14%.
  11. 11. STANDALONE BALANCE SHEET Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) BALANCE SHEET 31.03.2013 8,245.46 8,245.46 0 0 72,142.05 0 9,404.05 43,849.61 1,03,245.70 -40,309.60 37,109.42 10,760.10 4,057.19 5,365.49 16,867.70 26,290.38 24,020.46 0 50,310.84 0 19,730.83 7,744.46 27,475.29 22,835.55 0 1,33,641.17 63,299.15 97.49 in Rs.(Cr.) 80,387.51 53,253.66 1,33,641.17 62,936.10 31.03.2012 8,245.46 8,245.46 0 0 65,045.71 0 9,156.30 38,182.03 81,723.52 -36,465.12 41,827.82 11,206.38 3,702.85 5,832.51 16,146.11 25,681.47 16,863.73 0 42,545.20 0 16,388.98 3,819.32 20,208.30 22,336.90 0 1,20,629.50 42,308.16 88.89 73,291.17 47,338.33 1,20,629.50 45,258.40
  12. 12. P/L STATEMENT 31.03.2013 STANDALONE PROFIT AND LOSS ACCOUNT Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Operating Profit PBDIT Financial Expense PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Preference Dividend Equity Dividend Corporate Dividend Tax Retained Earning Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 31.03.2012 in Rs.(Cr.) 66,200.24 -526.31 62,480.88 -428.65 65,673.93 4,785.69 0 62,052.23 3,103.42 0 70,459.62 46.35 41,661.34 3,360.12 1,782.45 0 1,739.33 0 65,155.65 45.24 42,171.65 3,090.48 1,529.24 0 1,478.12 0 48,589.59 48,314.73 17,084.34 21,870.03 1,924.36 19,945.67 3,396.76 0 16,548.91 188.57 16,737.48 4,118.09 12,619.39 0 4,741.16 781.87 7,096.36 13,737.50 16,840.92 1,711.64 15,129.28 2,791.70 0 12,337.58 452.64 12,790.22 3,241.49 9,223.73 0 3,298.19 527.92 5,397.62 82,454.64 15.3 57.5 97.49 82,454.64 11.19 40 88.89
  13. 13. CASH FLOW ANALYSIS 31.03.2013 CASH FLOW FROM OPERATING ACTIVITIES Net Profit before tax Adjustment for: Depreciation / Amortisation Prior period depreciation / amortisation Provisions Deferred revenue on account of advance against depreciation Deferred foreign currency fl uctuation asset/liability Deferred income from foreign currency fl uctuation Interest charges Guarantee fee & other fi nance charges Interest/income on bonds/investments Dividend income Provisions written back Profit on disposal of fixed assets Loss on disposal of fixed assets 3396.76 -0.25 206.25 -9.87 240.28 79.56 1902.13 22.23 -2397.11 -241.32 -844.70 -4.62 59.91 Operating Profi t before Working Capital Changes Adjustment for: Trade receivables Inventories Trade payables, provisions and other liabilities Loans & Advances and Other current assets 1307.69 -157.16 1550.38 -3298.04 Cash generated from operations Direct taxes paid Net Cash from Operating Activities - A CASH FLOW FROM INVESTING ACTIVITIES Purchase of fixed assets Disposal of fixed assets Purchase of investments Sale of investments Investment in subsidiaries/joint ventures Loans & advances to subsidiaries Interest/income on bonds/investments received Income Tax paid on interest income Dividend received Net Cash from Investing Activities - B CASH FLOW FROM FINANCING ACTIVITIES Proceeds from long term borrowings Repayment of long term borrowings Grants received Interest paid Guarantee fee & other fi nance charges paid Dividend paid Tax on dividend Net cash flow from Financing Activities - C Net increase/decrease in cash and cash equivalents (A+B+C) Cash and cash equivalents at the beginning of the year (see Note 1 below) Cash and cash equivalents at the end of the period (see Note 1 below) 31.03.2012 in Rs.(Cr.) 16578.63 -16296.65 5.44 -17955.00 19577.46 -1177.22 -73.06 2417.32 -756.50 241.32 2409.25 18987.88 -597.13 18390.75 -2895.58 15495.17 -14016.89 11696.96 -4434.52 -3831.50 -114.57 -3504.34 -564.44 -752.41 725.87 16141.83 18867.70 12326.16 2791.70 -1.35 65.18 -73.58 -874.84 792.00 1681.75 29.89 -2307.65 -169.30 -315.86 -13.28 58.40 -2862.83 93.94 375.87 185.94 -10794.44 78.76 -23630.00 25433.87 -681.68 -2.98 2235.00 -688.37 169.30 8736.39 -3522.93 1.33 -3885.12 -84.18 -3545.55 -569.02 1663.06 13989.22 -2207.08 11782.14 -1072.29 10709.85 -7880.54 -2869.08 -39.77 16181.60 16141.83
  14. 14. NET TAKE AWAY ACTIVITIES 2013(BILLION) 2012(BILLION) OPERATING 154.95 107.09 INVESTING -140.16 -78.8 FINANCING -7.52 -28.69  Operating activity shows increment from 2012 to 2013. After analyzing the balance sheet, we found that there is a drastic decrease in trade receivables which infers that cash is being collected from customers faster than the products are being provided or services are being rendered.  Investing activity has gone up due to purchase of fixed assets and investing in subsidiary and joint venture.  Financing activity shows improvement due to cash inflow from long term borrowings.
  15. 15. RATIO ANALYSIS SOLVENCY RATIOS Long term debt/equity Total debt/equity Total assets/Equity called equity multiplier Interest coverage ratio NTPC TATA POWER Mar '13 Mar '12 Mar '13 Mar '12 0.66 0.65 0.91 0.78 1.00 0.92 1.15 1.13 2.00 1.92 2.15 2.13 11.36 9.84 4.05 5.38
  16. 16. RATIO ANALYSIS LIQUIDITY RATIOS Current asset/Current liability Quick assets/Current liability Cash/Current liability Cash coverage=cash/average daily cash expense NTPC TATA POWER Mar '13 Mar '12 Mar '13 Mar '12 0.96 1.27 0.394 0.46 0.81 1.09 0.139 0.26 0.85 0.99 0.194 0.02 126.71 121.98 19.992 3.19
  17. 17. RATIO ANALYSIS EFFICIENCY RATIO Asset turnover[sales/Average asset] Excluding Cap WIP Fixed asset turnover [sales/average FA] Current asset Turnover [sales/average CA] Inventory turnover [sales/ average inventory] Debtors turnover ratio[sales/ average debtors] DSO or Debtors' age Inventory holding period NTPC Mar '13 Mar '12 0.47 0.51 0.65 0.76 0.77 0.96 2.53 3.30 16.93 16.90 11.73 9.02 31.12 40.46 21.56 21.59 TATA POWER Mar '13 Mar '12 0.62 0.60 0.65 0.65 0.84 0.85 6.19 3.60 11.84 11.55 19.07 5.76 19.14 63.42 30.82 31.61
  18. 18. RATIO ANALYSIS PROFITABILITY NTPC TATA POWER Mar '13 Mar '12 Mar '13 Mar '12 ROA [Net Income After TAX/AVG TOTAL ASSETS] 0.08 0.07 0.040 0.05 ROE [Net Income After TAX/AVG SHAREHOLDER EQUITY] 0.16 0.13 0.085 0.10 OPERATING PROFIT MARGIN [EBIT/NET SALES] 0.28 0.23 0.249 0.26 ROCE [Ebit/(AVG TOTAL ASSET+CL)] 0.11 0.09 0.085 0.08
  19. 19. RATIO ANALYSIS DUPOINT Tax burden [PAT/PBT] Interest burden [PBT/PBIT] Operating income margin [PBIT/Sales] Asset turnover [Sales/Total Assets] Equity multiplier [Total Assets/Equity] ROE NTPC Mar '13 Mar '12 0.76 0.75 0.90 0.88 0.28 0.23 0.41 0.44 1.96 1.88 0.15 0.12 TATA POWER Mar '13 Mar '12 0.602 0.70 0.715 0.77 0.249 0.26 0.357 0.34 2.160 2.02 0.083 0.09
  20. 20. THANK YOU

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