TATA POWER 2019-20 Annual Report Analysis

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TATA POWER 2019-20 Annual Report Analysis
Fri, 11 Dec

TATA POWER has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

TATA POWER Income Statement Analysis

  • Operating income during the year fell 2.5% 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 26.6% in FY20 as against 22.9% in FY19.
  • Depreciation charges increased by 10.0% and finance costs increased by 7.8% YoY, respectively.
  • Other income grew by 45.7% YoY.
  • Net profit for the year declined by 36.8% YoY.
  • Net profit margins during the year declined from 9.0% in FY19 to 5.8% in FY20.

TATA POWER Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 298,811 291,364 -2.5%
Other income Rs m 3,862 5,626 45.7%
Total Revenues Rs m 302,672 296,990 -1.9%
Gross profit Rs m 68,484 77,541 13.2%
Depreciation Rs m 23,931 26,336 10.0%
Interest Rs m 41,700 44,937 7.8%
Profit before tax Rs m 6,714 11,895 77.2%
Tax Rs m 10,876 6,415 -41.0%
Profit after tax Rs m 27,315 17,267 -36.8%
Gross profit margin % 22.9 26.6
Effective tax rate % 162.0 53.9
Net profit margin % 9.0 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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TATA POWER Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 265 billion as compared to Rs 277 billion in FY19, thereby witnessing an decrease of -4.1%.
  • Long-term debt stood at Rs 327 billion as compared to Rs 311 billion during FY19, a growth of 5.0%.
  • Current assets rose 18% and stood at Rs 120 billion, while fixed assets fell 14% and stood at Rs 506 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 897 billion as against Rs 842 billion during FY19, thereby witnessing a growth of 7%.

TATA POWER Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 167,212 180,660 8.0
 
Current Liabilities Rs m 276,645 265,214 -4.1
Long-term Debt Rs m 311,392 326,951 5.0
Total Liabilities Rs m 841,620 897,482 6.6
 
Current assets Rs m 102,244 120,215 17.6
Fixed Assets Rs m 588,703 505,985 -14.1
Total Assets Rs m 841,620 897,482 6.6
* 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 FY20 stood at Rs 74 billion, an improvement of 61.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -5 billion, an improvement of 70.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -51 billion, an improvement of 1% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 18 billion from the Rs -9 billion net cash flows seen during FY19.

TATA POWER Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 45,738 73,753 61.3%
Cash Flow from Investing Activities Rs m -3,192 -5,429 -
Cash Flow from Financing Activities Rs m -51,845 -51,096 -
Net Cash Flow Rs m -8,830 17,729 -
* 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 6.4, an decline from the EPS of Rs 10.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 72.9, stands at 90.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 110.4 107.7
TTM Earnings per share Rs 10.1 6.4
Diluted earnings per share Rs 10.1 6.4
Price to Cash Flow x 5.8 4.8
TTM P/E ratio x 90.5 90.4
Price / Book Value ratio x 1.2 0.8
Market Cap Rs m 197,299 197,168
Dividends per share (Unadj.) Rs 1.3 1.6
* 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 0.5x during FY20, from 0.4x during FY19. 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 1.3x during FY20, from 1.2x during FY19. 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 9.6% during FY20, from 16.3% during FY20. 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 13.5% during FY20, from 16.7% during FY19. 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 6.9% during FY20, from 8.2% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.4 0.5
Debtors’ Days Days 54 55
Interest coverage x 1.2 1.3
Debt to equity ratio x 1.9 1.8
Return on assets % 8.2 6.9
Return on equity % 16.3 9.6
Return on capital employed % 16.7 13.5
* 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 52.8 to Rs 72.9, registering a gain of Rs 20.1 or around 38.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,039.5 (up 0.0%). Over the last one year it has moved up from 1,857.9 to 2,039.5, a gain of 182 points (up 9.8%).

Overall, the S&P BSE SENSEX is up 13.4% over the year.

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

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TATA POWER Announces Quarterly Results (3QFY21); Net Profit Down 195.1% (Quarterly Result Update)

Feb 5, 2021 | Updated on Feb 5, 2021

For the quarter ended December 2020, TATA POWER has posted a net profit of Rs 613 m (down 195.1% YoY). Sales on the other hand came in at Rs 76 bn (up 7.5% YoY). Read on for a complete analysis of TATA POWER's quarterly results.

TATA POWER Announces Quarterly Results (4QFY20); Net Profit Up 193.1% (Quarterly Result Update)

May 21, 2020 | Updated on May 21, 2020

For the quarter ended March 2020, TATA POWER has posted a net profit of Rs 3 bn (up 193.1% YoY). Sales on the other hand came in at Rs 66 bn (down 8.4% YoY). Read on for a complete analysis of TATA POWER's quarterly results.

TATA POWER 2018-19 Annual Report Analysis (Annual Result Update)

Jun 4, 2019 | Updated on Jun 4, 2019

Here's an analysis of the annual report of TATA POWER for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of TATA POWER. Also includes updates on the valuation of TATA POWER.

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