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ADANI POWER 2020-21 Annual Report Analysis
Wed, 31 Mar

ADANI POWER has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ADANI POWER Income Statement Analysis

  • Operating income during the year fell 0.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 85.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.1% in FY21 as against 17.7% in FY20.
  • Depreciation charges increased by 6.5% and finance costs decreased by 3.9% YoY, respectively.
  • Other income grew by 40.3% YoY.
  • Net profit for the year declined by 155.8% YoY.
  • Net profit margins during the year grew from 8.6% in FY20 to 4.8% in FY21.

ADANI POWER Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 264,677 262,215 -0.9%
Other income Rs m 13,741 19,282 40.3%
Total Revenues Rs m 278,418 281,497 1.1%
Gross profit Rs m 46,823 86,685 85.1%
Depreciation Rs m 30,065 32,017 6.5%
Interest Rs m 53,148 51,063 -3.9%
Profit before tax Rs m -22,649 22,887 -201.1%
Tax Rs m 99 10,188 10,242.7%
Profit after tax Rs m -22,748 12,700 -155.8%
Gross profit margin % 17.7 33.1
Effective tax rate % -0.4 44.5
Net profit margin % -8.6 4.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

ADANI POWER Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 185 billion as compared to Rs 182 billion in FY20, thereby witnessing an increase of 1.5%.
  • Long-term debt down at Rs 526 billion as compared to Rs 532 billion during FY20, a fall of 1.1%.
  • Current assets rose 19% and stood at Rs 174 billion, while fixed assets rose 1% and stood at Rs 612 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 785 billion as against Rs 750 billion during FY20, thereby witnessing a growth of 5%.

ADANI POWER Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m -21,346 4,976 -123.3
 
Current Liabilities Rs m 182,013 184,679 1.5
Long-term Debt Rs m 531,813 525,720 -1.1
Total Liabilities Rs m 750,372 785,464 4.7
 
Current assets Rs m 146,053 173,829 19.0
Fixed Assets Rs m 604,318 611,636 1.2
Total Assets Rs m 750,372 785,464 4.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ADANI POWER Cash Flow Statement Analysis

  • ADANI POWER's cash flow from operating activities (CFO) during FY21 stood at Rs 70 billion, an improvement of 25.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -22 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -57 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -8 billion from the Rs 9 billion net cash flows seen during FY20.

ADANI POWER Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 55,976 70,144 25.3%
Cash Flow from Investing Activities Rs m -23,281 -21,876 -
Cash Flow from Financing Activities Rs m -23,772 -56,548 -
Net Cash Flow Rs m 9,166 -8,281 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ADANI POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an improvement from the EPS of Rs -5.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 85.1, stands at 25.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 65.9 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 68.6 68.0
TTM Earnings per share Rs -5.9 3.3
Diluted earnings per share Rs -5.9 3.3
Price to Cash Flow x 14.6 5.8
TTM P/E ratio x -4.7 25.8
Price / Book Value ratio x -8.9 52.3
Market Cap Rs m 189,086 260,343
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ADANI POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.8x during FY20. 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 improved and stood at 1.4x during FY21, from 0.6x during FY20. 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 improved and stood at 255.2% during FY21, from 106.6% during FY21. 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 13.9% during FY21, from 6.0% during FY20. 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 8.1% during FY21, from 4.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 0.8 0.9
Debtors’ Days Days 12 16
Interest coverage x 0.6 1.4
Debt to equity ratio x -24.9 105.7
Return on assets % 4.1 8.1
Return on equity % 106.6 255.2
Return on capital employed % 6.0 13.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 27.8 to Rs 85.1, registering a gain of Rs 57.3 or around 206.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of ADANI POWER?

ADANI POWER currently trades at Rs 533.7 per share. You can check out the latest share price performance of ADANI POWER here...

What was the revenue of ADANI POWER in FY21? How does it compare to earlier years?

The revenues of ADANI POWER stood at Rs 281,497 m in FY21, which was up 1.1% compared to Rs 278,418 m reported in FY20.

ADANI POWER's revenue has grown from Rs 230,345 m in FY17 to Rs 281,497 m in FY21.

Over the past 5 years, the revenue of ADANI POWER has grown at a CAGR of 5.1%.

What was the net profit of ADANI POWER in FY21? How does it compare to earlier years?

The net profit of ADANI POWER stood at Rs 12,700 m in FY21, which was down -155.8% compared to Rs -22,748 m reported in FY20.

This compares to a net loss of Rs -9,844 m in FY19 and a net loss of Rs -20,738 m in FY18.

Over the past 5 years, ADANI POWER net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ADANI POWER reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ADANI POWER reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 70,144 m as compared to Rs 55,976 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -21,876 m as compared to Rs -23,281 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -56,548 m as compared to Rs -23,772 m in FY20.

Here's the cash flow statement of ADANI POWER for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations47,25251,01256,10455,97670,144
From Investments-12,120-5,204-9,842-23,281-21,876
From Financial Activity-35,389-46,001-46,634-23,772-56,548
Net Cashflow-258-194-3719,166-8,281

What does the Key Ratio analysis of ADANI POWER reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ADANI POWER reveals:

  • Operating profit margins witnessed a fall and down at 33.1% in FY21 as against 17.7% in FY20.
  • Net profit margins grew from 8.6% in FY20 to 4.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 105.7 as compared to -24.9 in FY20.

Here's the ratio/financial analysis of ADANI POWER for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)8.426.620.717.733.1
Net Profit Margin (%)-27.3-10.2-4.1-8.64.8
Debt to Equity Ratio (x)12.238.9-154.4-24.9105.7

Read: Latest Annual Report Analysis of ADANI POWER

 

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