ADANI POWER 2021-22 Annual Report Analysis

Fri, 8 Jul

ADANI POWER 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 POWER Income Statement Analysis

• Operating income during the year rose 5.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 35.4% in FY22 as against 33.1% in FY21.
• Depreciation charges decreased by 2.6% and finance costs decreased by 19.8% YoY, respectively.
• Other income grew by 106.2% YoY.
• Net profit for the year grew by 286.7% YoY.
• Net profit margins during the year grew from 4.8% in FY21 to 17.7% in FY22.

ADANI POWER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	262,215	277,112	5.7%
Other income	Rs m	19,282	39,753	106.2%
Total Revenues	Rs m	281,497	316,865	12.6%
Gross profit	Rs m	86,685	98,142	13.2%
Depreciation	Rs m	32,017	31,175	-2.6%
Interest	Rs m	51,063	40,948	-19.8%
Profit before tax	Rs m	22,887	65,771	187.4%
Tax	Rs m	10,188	16,656	63.5%
Profit after tax	Rs m	12,700	49,116	286.7%
Gross profit margin	%	33.1	35.4
Effective tax rate	%	44.5	25.3
Net profit margin	%	4.8	17.7

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

ADANI POWER Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 171 billion as compared to Rs 187 billion in FY21, thereby witnessing an decrease of -8.5%.
• Long-term debt down at Rs 379 billion as compared to Rs 400 billion during FY21, a fall of 5.2%.
• Current assets fell 8% and stood at Rs 162 billion, while fixed assets rose 8% and stood at Rs 658 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 820 billion as against Rs 788 billion during FY21, thereby witnessing a growth of 4%.

ADANI POWER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	131,126	187,034	42.6
Current Liabilities	Rs m	187,274	171,437	-8.5
Long-term Debt	Rs m	399,570	378,713	-5.2
Total Liabilities	Rs m	788,059	819,810	4.0
Current assets	Rs m	176,424	162,281	-8.0
Fixed Assets	Rs m	611,636	657,530	7.5
Total Assets	Rs m	788,059	819,810	4.0

ADANI POWER Cash Flow Statement Analysis

• ADANI POWER's cash flow from operating activities (CFO) during FY22 stood at Rs 102 billion, an improvement of 45.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -103 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 7 billion from the Rs -8 billion net cash flows seen during FY21.

ADANI POWER 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	70,144	102,327	45.9%
Cash Flow from Investing Activities	Rs m	-21,876	5,721	-
Cash Flow from Financing Activities	Rs m	-56,548	-103,379	-
Net Cash Flow	Rs m	-8,281	6,693	-

Current Valuations for ADANI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 271.0, stands at 21.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.2 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	68.0	71.8
TTM Earnings per share	Rs	3.3	12.7
Diluted earnings per share	Rs	3.3	12.7
Price to Cash Flow	x	7.3	6.2
TTM P/E ratio	x	25.8	21.3
Price / Book Value ratio	x	2.0	2.7
Market Cap	Rs m	260,343	496,677
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ADANI POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY22, from 0.9x 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 improved and stood at 2.6x during FY22, from 1.4x 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 improved and stood at 26.3% during FY22, from 9.7% 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 improved and stood at 18.9% during FY22, from 13.9% 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 improved and stood at 11.0% during FY22, from 8.1% 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	0.9	0.9
Debtors’ Days	Days	16	13
Interest coverage	x	1.4	2.6
Debt to equity ratio	x	3.0	2.0
Return on assets	%	8.1	11.0
Return on equity	%	9.7	26.3
Return on capital employed	%	13.9	18.9

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 108.1 to Rs 271.0, registering a gain of Rs 163.0 or around 150.8%.

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 POWER and quarterly results for ADANI POWER)

Read: Latest Annual Report Analysis of ADANI POWER