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NHPC 2020-21 Annual Report Analysis
Wed, 31 Mar

NHPC 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.

NHPC Income Statement Analysis

  • Operating income during the year fell 3.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 51.8% in FY21 as against 55.3% in FY20.
  • Depreciation charges decreased by 19.6% and finance costs decreased by 25.3% YoY, respectively.
  • Other income grew by 570.2% YoY.
  • Net profit for the year grew by 7.4% YoY.
  • Net profit margins during the year grew from 33.4% in FY20 to 37.2% in FY21.

NHPC Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 100,078 96,479 -3.6%
Other income Rs m 2,163 14,494 570.2%
Total Revenues Rs m 102,241 110,973 8.5%
Gross profit Rs m 55,388 49,942 -9.8%
Depreciation Rs m 16,140 12,983 -19.6%
Interest Rs m 8,785 6,567 -25.3%
Profit before tax Rs m 32,625 44,886 37.6%
Tax Rs m -794 9,010 -1,234.7%
Profit after tax Rs m 33,419 35,876 7.4%
Gross profit margin % 55.3 51.8
Effective tax rate % -2.4 20.1
Net profit margin % 33.4 37.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NHPC Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 76 billion as compared to Rs 77 billion in FY20, thereby witnessing an decrease of -0.3%.
  • Long-term debt stood at Rs 212 billion as compared to Rs 209 billion during FY20, a growth of 1.7%.
  • Current assets fell 1% and stood at Rs 101 billion, while fixed assets rose 3% and stood at Rs 563 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 742 billion as against Rs 728 billion during FY20, thereby witnessing a growth of 2%.

NHPC Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 313,809 330,903 5.4
 
Current Liabilities Rs m 76,674 76,428 -0.3
Long-term Debt Rs m 208,918 212,433 1.7
Total Liabilities Rs m 728,181 742,280 1.9
 
Current assets Rs m 101,811 100,516 -1.3
Fixed Assets Rs m 549,003 562,817 2.5
Total Assets Rs m 728,181 742,280 1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NHPC Cash Flow Statement Analysis

  • NHPC's cash flow from operating activities (CFO) during FY21 stood at Rs 51 billion, an improvement of 69.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -15 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -31 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs 171 million net cash flows seen during FY20.

NHPC 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 29,925 50,728 69.5%
Cash Flow from Investing Activities Rs m -29,871 -15,302 -
Cash Flow from Financing Activities Rs m 117 -31,375 -
Net Cash Flow Rs m 171 4,051 2,264.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NHPC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, 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 24.5, stands at 7.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.7 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 10.0 9.6
TTM Earnings per share Rs 3.3 3.6
Diluted earnings per share Rs 3.3 3.6
Price to Cash Flow x 4.0 4.7
TTM P/E ratio x 5.5 7.3
Price / Book Value ratio x 0.7 0.7
Market Cap Rs m 221,744 230,534
Dividends per share (Unadj.) Rs 1.5 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NHPC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY21, from 1.3x 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 7.8x during FY21, from 4.7x 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 10.8% during FY21, from 10.6% 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 9.5% during FY21, from 7.9% 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 declined and down at 5.7% during FY21, from 5.8% 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 1.3 1.3
Debtors’ Days Days 13 13
Interest coverage x 4.7 7.8
Debt to equity ratio x 0.7 0.6
Return on assets % 5.8 5.7
Return on equity % 10.6 10.8
Return on capital employed % 7.9 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NHPC Share Price Performance

Over the last one year, NHPC share price has moved up from Rs 20.0 to Rs 24.5, registering a gain of Rs 4.5 or around 22.6%.

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 NHPC and quarterly results for NHPC)

Annual Report FAQs

What is the current share price of NHPC?

NHPC currently trades at Rs 38.4 per share. You can check out the latest share price performance of NHPC here...

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

The revenues of NHPC stood at Rs 110,973 m in FY21, which was up 8.5% compared to Rs 102,241 m reported in FY20.

NHPC's revenue has grown from Rs 101,303 m in FY17 to Rs 110,973 m in FY21.

Over the past 5 years, the revenue of NHPC has grown at a CAGR of 2.3%.

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

The net profit of NHPC stood at Rs 35,876 m in FY21, which was up 7.4% compared to Rs 33,419 m reported in FY20.

This compares to a net profit of Rs 28,306 m in FY19 and a net profit of Rs 27,848 m in FY18.

Over the past 5 years, NHPC net profit has grown at a CAGR of 0.8%.

What does the cash flow statement of NHPC 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 NHPC reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 50,728 m as compared to Rs 29,925 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -15,302 m as compared to Rs -29,871 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -31,375 m as compared to Rs 117 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations83,29246,96138,24229,92550,728
From Investments-18,645-8,862-11,823-29,871-15,302
From Financial Activity-78,116-38,629-26,372117-31,375
Net Cashflow-13,470-530471714,051

What does the Key Ratio analysis of NHPC 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 NHPC reveals:

  • Operating profit margins witnessed a fall and stood at 51.8% in FY21 as against 55.3% in FY20.
  • Net profit margins grew from 33.4% in FY20 to 37.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.6 as compared to 0.7 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)60.952.055.755.351.8
Net Profit Margin (%)40.335.931.533.437.2
Debt to Equity Ratio (x)0.60.60.60.70.6

Read: Latest Annual Report Analysis of NHPC

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