TATA POWER 2018-19 Annual Report Analysis

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TATA POWER 2018-19 Annual Report Analysis
Tue, 4 Jun

TATA POWER has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

TATA POWER Income Statement Analysis

  • Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 8.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.5% in FY19 as against 21.8% in FY18.
  • Depreciation charges increased by 2.0% and finance costs increased by 10.9% YoY, respectively.
  • Other income declined by 8.5% YoY.
  • Net profit for the year declined by 4.3% YoY.
  • Net profit margins during the year declined from 9.8% in FY18 to 8.6% in FY19.

TATA POWER Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 268,403 295,586 10.1%
Other income Rs m 4,327 3,958 -8.5%
Total Revenues Rs m 272,730 299,545 9.8%
Gross profit Rs m 58,631 63,568 8.4%
Depreciation Rs m 23,462 23,931 2.0%
Interest Rs m 37,615 41,700 10.9%
Profit before tax Rs m 1,881 1,895 0.7%
Tax Rs m 1,620 6,561 305.1%
Profit after tax Rs m 26,826 25,663 -4.3%
Gross profit margin % 21.8 21.5
Effective tax rate % 86.1 346.2
Net profit margin % 9.8 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA POWER Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 277 billion as compared to Rs 365 billion in FY18, thereby witnessing an decrease of -24.2%.
  • Long-term debt stood at Rs 311 billion as compared to Rs 224 billion during FY18, a growth of 39.3%.
  • Current assets rose 7% and stood at Rs 102 billion, while fixed assets fell 1% and stood at Rs 589 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 842 billion as against Rs 820 billion during FY18, thereby witnessing a growth of 3%.

TATA POWER Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 152,602 167,212 9.6
 
Current Liabilities Rs m 365,196 276,645 -24.2
Long-term Debt Rs m 223,563 311,392 39.3
Total Liabilities Rs m 820,100 841,620 2.6
 
Current assets Rs m 95,918 102,244 6.6
Fixed Assets Rs m 592,456 588,703 -0.6
Total Assets Rs m 820,100 841,620 2.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA POWER Cash Flow Statement Analysis

  • TATA POWER's cash flow from operating activities (CFO) during FY19 stood at Rs 46 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -52 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -9 billion from the Rs 1 billion net cash flows seen during FY18.

TATA POWER Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 63,639 45,738 -28.1%
Cash Flow from Investing Activities Rs m -15,179 -3,192 -
Cash Flow from Financing Activities Rs m -47,263 -51,845 -
Net Cash Flow Rs m 1,259 -8,830 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TATA POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an decline from the EPS of Rs 9.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 67.4, stands at 11.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 99.2 109.2
TTM Earnings per share Rs 9.9 9.5
Diluted earnings per share Rs 9.9 9.5
Price to Cash Flow x 5.2 5.0
TTM P/E ratio x 11.0 11.0
Price / Book Value ratio x 1.6 1.2
Market Cap Rs m 182,413 182,292
Dividends per share (Unadj.) Rs 1.3 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TATA POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.4x during FY19, from 0.3x during FY18. 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 1.0x during FY19, from 1.1x during FY18. 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 15.3% during FY19, from 17.6% during FY19. 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 15.4% during FY19, from 17.6% during FY18. 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 8.0% during FY19, from 7.9% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.3 0.4
Debtors’ Days Days 38 55
Interest coverage x 1.1 1.0
Debt to equity ratio x 1.5 1.9
Return on assets % 7.9 8.0
Return on equity % 17.6 15.3
Return on capital employed % 17.6 15.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

TATA POWER Share Price Performance

Over the last one year, TATA POWER share price has moved up from Rs 77.2 to Rs 67.4, registering a loss of Rs 9.8 or around 12.6%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,037.5 (up 0.9%). Over the last one year it has moved down from 2,040.7 to 2,037.5, a loss of 3 points (down 0.2%).

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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

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Related Views on News

TATA POWER Announces Quarterly Results (2QFY20); Net Profit Up 20.2% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, TATA POWER has posted a net profit of Rs 5 bn (up 20.2% YoY). Sales on the other hand came in at Rs 77 bn (up 4.7% YoY). Read on for a complete analysis of TATA POWER's quarterly results.

TATA POWER Announces Quarterly Results (1QFY20); Net Profit Down 85.1% (Quarterly Result Update)

Aug 2, 2019 | Updated on Aug 2, 2019

For the quarter ended June 2019, TATA POWER has posted a net profit of Rs 2 bn (down 85.1% YoY). Sales on the other hand came in at Rs 78 bn (up 6.2% YoY). Read on for a complete analysis of TATA POWER's quarterly results.

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