ADANI POWER 2017-18 Annual Report Analysis

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ADANI POWER 2017-18 Annual Report Analysis
Fri, 29 Mar

ADANI POWER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ADANI POWER Income Statement Analysis

  • Operating income during the year fell 8.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 4.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.6% in FY18 as against 26.4% in FY17.
  • Depreciation charges increased by 1.0% and finance costs decreased by 5.6% YoY, respectively.
  • Other income grew by 15.1% YoY.
  • Net profit for the year declined by 65.7% YoY.
  • Net profit margins during the year grew from 26.8% in FY17 to 10.0% in FY18.

ADANI POWER Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m226,155206,110-8.9%
Other incomeRs m4,1904,82415.1%
Total RevenuesRs m230,345210,934-8.4%
Gross profitRs m59,71656,912-4.7%
DepreciationRs m26,72426,9871.0%
InterestRs m59,01755,702-5.6%
Profit before taxRs m-21,835-20,953-4.0%
TaxRs m-861-52-94.0%
Profit after taxRs m-61,741-21,194-65.7%
Gross profit margin%26.427.6
Effective tax rate%3.90.2
Net profit margin%-26.8-10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ADANI POWER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 280 billion as compared to Rs 257 billion in FY17, thereby witnessing an increase of 9.3%.
  • Long-term debt down at Rs 346 billion as compared to Rs 367 billion during FY17, a fall of 5.7%.
  • Current assets rose 3% and stood at Rs 140 billion, while fixed assets fell 4% and stood at Rs 523 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 695 billion as against Rs 715 billion during FY17, thereby witnessing a fall of 3%.

ADANI POWER Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m29,9968,845-70.5
 
Current LiabilitiesRs m256,615280,3789.3
Long-term DebtRs m366,506345,599-5.7
Total LiabilitiesRs m715,111695,233-2.8
 
Current assetsRs m135,309139,5173.1
Fixed AssetsRs m 545,155522,570-4.1
Total AssetsRs m715,111695,233-2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ADANI POWER Cash Flow Statement Analysis

  • ADANI POWER's cash flow from operating activities (CFO) during FY18 stood at Rs 51 billion, an improvement of 7.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -46 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -194 million from the Rs -258 million net cash flows seen during FY17.

ADANI POWER Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m47,25250,9977.9%
Cash Flow from Investing ActivitiesRs m-12,120-5,190-
Cash Flow from Financing ActivitiesRs m-35,389-46,001-
Net Cash FlowRs m-258-194-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ADANI POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.5, an improvement from the EPS of Rs -16.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 49.1, stands at -6.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 15.5 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs58.653.4
TTM Earnings per shareRs-16.0-5.5
Diluted earnings per shareRs-21.5-7.4
Price to Cash Flow x-5.423.2
TTM P/E ratiox-8.4-6.2
Price / Book Value ratiox4.015.5
Market CapRs m189,376141,011
Dividends per share (Unadj.)Rs0.00.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ADANI POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY18, from 0.5x during FY17. 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 0.6x during FY18, from 0.6x during FY17. 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 -239.6% during FY18, from -205.8% during FY18. 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 9.7% during FY18, from -0.9% during FY17. 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 5.0% during FY18, from -0.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox0.50.5
Debtors’ DaysDays124107
Interest coveragex0.60.6
Debt to equity ratiox12.239.1
Return on assets%-0.45.0
Return on equity%-205.8-239.6
Return on capital employed%-0.99.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ADANI POWER Share Price Performance

Over the last one year, ADANI POWER share price has moved up from Rs 23.8 to Rs 49.1, registering a gain of Rs 25.4 or around 106.7%.

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

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Aug 8, 2019 | Updated on Aug 8, 2019

For the quarter ended June 2019, ADANI POWER has posted a net profit of Rs 4 bn (up 52.8% YoY). Sales on the other hand came in at Rs 78 bn (up 103.8% YoY). Read on for a complete analysis of ADANI POWER's quarterly results.

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For the quarter ended March 2019, ADANI POWER has posted a net profit of Rs 6 bn (up 197.9% YoY). Sales on the other hand came in at Rs 67 bn (up 65.4% YoY). Read on for a complete analysis of ADANI POWER's quarterly results.

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