ADANI TRANSMISSION 2021-22 Annual Report Analysis

Fri, 8 Jul

ADANI TRANSMISSION has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ADANI TRANSMISSION Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 37.4% in FY22 as against 39.8% in FY21.
• Depreciation charges increased by 7.4% and finance costs increased by 11.7% YoY, respectively.
• Other income grew by 15.3% YoY.
• Net profit for the year declined by 4.2% YoY.
• Net profit margins during the year declined from 13.0% in FY21 to 11.0% in FY22.

ADANI TRANSMISSION Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	99,263	112,575	13.4%
Other income	Rs m	11,154	12,864	15.3%
Total Revenues	Rs m	110,417	125,439	13.6%
Gross profit	Rs m	39,504	42,062	6.5%
Depreciation	Rs m	13,289	14,272	7.4%
Interest	Rs m	21,170	23,650	11.7%
Profit before tax	Rs m	16,199	17,005	5.0%
Tax	Rs m	3,303	4,647	40.7%
Profit after tax	Rs m	12,896	12,358	-4.2%
Gross profit margin	%	39.8	37.4
Effective tax rate	%	20.4	27.3
Net profit margin	%	13.0	11.0

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ADANI TRANSMISSION Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 59 billion as compared to Rs 67 billion in FY21, thereby witnessing an decrease of -11.4%.
• Long-term debt stood at Rs 308 billion as compared to Rs 266 billion during FY21, a growth of 15.7%.
• Current assets rose 13% and stood at Rs 56 billion, while fixed assets rose 9% and stood at Rs 418 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 475 billion as against Rs 432 billion during FY21, thereby witnessing a growth of 10%.

ADANI TRANSMISSION Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	60,896	68,572	12.6
Current Liabilities	Rs m	66,886	59,282	-11.4
Long-term Debt	Rs m	266,385	308,297	15.7
Total Liabilities	Rs m	432,336	474,641	9.8
Current assets	Rs m	49,994	56,426	12.9
Fixed Assets	Rs m	382,341	418,215	9.4
Total Assets	Rs m	432,336	474,641	9.8

ADANI TRANSMISSION Cash Flow Statement Analysis

• ADANI TRANSMISSION's cash flow from operating activities (CFO) during FY22 stood at Rs 41 billion, an improvement of 8.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -39 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -746 million from the Rs -10 billion net cash flows seen during FY21.

ADANI TRANSMISSION Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	37,843	40,966	8.3%
Cash Flow from Investing Activities	Rs m	-40,253	-39,480	-
Cash Flow from Financing Activities	Rs m	-7,447	-2,349	-
Net Cash Flow	Rs m	-9,693	-746	-

Current Valuations for ADANI TRANSMISSION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.2, an decline from the EPS of Rs 11.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,562.0, stands at 226.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 41.7 times, while the price to sales ratio stands at 25.0 times.
• The company's price to cash flow (P/CF) ratio stood at 71.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	90.3	102.4
TTM Earnings per share	Rs	11.7	11.2
Diluted earnings per share	Rs	11.6	11.1
Price to Cash Flow	x	38.7	71.0
TTM P/E ratio	x	84.7	226.0
Price / Book Value ratio	x	9.9	27.6
Market Cap	Rs m	600,276	1,890,656
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI TRANSMISSION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 0.7x during FY21. 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 1.7x during FY22, from 1.8x during FY21. 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 18.0% during FY22, from 21.2% during FY22. 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 10.8% during FY22, from 11.4% during FY21. 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 7.6% during FY22, from 7.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.7	1.0
Debtors’ Days	Days	4	3
Interest coverage	x	1.8	1.7
Debt to equity ratio	x	4.4	4.5
Return on assets	%	7.9	7.6
Return on equity	%	21.2	18.0
Return on capital employed	%	11.4	10.8

To see how ADANI TRANSMISSION has performed over the last 5 years, please visit here.

ADANI TRANSMISSION Share Price Performance

Over the last one year, ADANI TRANSMISSION share price has moved up from Rs 982.6 to Rs 2,562.0, registering a gain of Rs 1,579.4 or around 160.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,199.8 (up 1.7%). Over the last one year it has moved up from 2,700.0 to 4,199.8, a gain of 1,500 points (up 55.5%).

Overall, the S&P BSE SENSEX is up 3.1% over the year.

(To know more, check out historical annual results for ADANI TRANSMISSION and quarterly results for ADANI TRANSMISSION)

Read: Latest Annual Report Analysis of ADANI ENERGY SOLUTIONS