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

TATA 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.

TATA POWER Income Statement Analysis

  • Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.2% in FY21 as against 24.7% in FY20.
  • Depreciation charges increased by 4.2% and finance costs decreased by 10.9% YoY, respectively.
  • Other income grew by 23.4% YoY.
  • Net profit for the year grew by 55.3% YoY.
  • Net profit margins during the year grew from 1.2% in FY20 to 1.7% in FY21.

TATA POWER Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 294,801 326,617 10.8%
Other income Rs m 8,700 10,738 23.4%
Total Revenues Rs m 303,502 337,355 11.2%
Gross profit Rs m 72,673 65,999 -9.2%
Depreciation Rs m 26,336 27,449 4.2%
Interest Rs m 45,308 40,353 -10.9%
Profit before tax Rs m 9,730 8,935 -8.2%
Tax Rs m 6,091 3,282 -46.1%
Profit after tax Rs m 3,639 5,653 55.3%
Gross profit margin % 24.7 20.2
Effective tax rate % 62.6 36.7
Net profit margin % 1.2 1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

TATA POWER Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 310 billion as compared to Rs 276 billion in FY20, thereby witnessing an increase of 12.3%.
  • Long-term debt down at Rs 300 billion as compared to Rs 327 billion during FY20, a fall of 8.1%.
  • Current assets rose 9% and stood at Rs 259 billion, while fixed assets rose 10% and stood at Rs 727 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 987 billion as against Rs 897 billion during FY20, thereby witnessing a growth of 10%.

TATA POWER Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 180,660 208,223 15.3
 
Current Liabilities Rs m 275,840 309,691 12.3
Long-term Debt Rs m 326,951 300,450 -8.1
Total Liabilities Rs m 896,739 986,672 10.0
 
Current assets Rs m 237,547 258,967 9.0
Fixed Assets Rs m 658,887 727,411 10.4
Total Assets Rs m 896,739 986,672 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA POWER Cash Flow Statement Analysis

  • TATA POWER's cash flow from operating activities (CFO) during FY21 stood at Rs 85 billion, an improvement of 14.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -76 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 18 billion from the Rs 18 billion net cash flows seen during FY20.

TATA 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 73,753 84,580 14.7%
Cash Flow from Investing Activities Rs m -5,429 6,676 -
Cash Flow from Financing Activities Rs m -51,096 -76,029 -
Net Cash Flow Rs m 17,729 18,485 4.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an improvement from the EPS of Rs 1.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 103.2, stands at 53.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.9 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 109.0 102.2
TTM Earnings per share Rs 1.3 1.8
Diluted earnings per share Rs 1.1 1.8
Price to Cash Flow x 3.5 6.9
TTM P/E ratio x 13.4 53.9
Price / Book Value ratio x 0.8 1.1
Market Cap Rs m 143,894 226,789
Dividends per share (Unadj.) Rs 1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY21, from 0.9x 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 1.2x during FY21, from 1.2x 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 2.7% during FY21, from 2.0% 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 declined and down at 9.7% during FY21, from 10.8% 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 4.7% during FY21, from 5.5% 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 0.9 0.8
Debtors’ Days Days 5 6
Interest coverage x 1.2 1.2
Debt to equity ratio x 1.8 1.4
Return on assets % 5.5 4.7
Return on equity % 2.0 2.7
Return on capital employed % 10.8 9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 32.9 to Rs 103.2, registering a gain of Rs 70.4 or around 214.2%.

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 TATA POWER and quarterly results for TATA POWER)

Annual Report FAQs

What is the current share price of TATA POWER?

TATA POWER currently trades at Rs 394.7 per share. You can check out the latest share price performance of TATA POWER here...

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

The revenues of TATA POWER stood at Rs 337,355 m in FY21, which was up 11.2% compared to Rs 303,502 m reported in FY20.

TATA POWER's revenue has grown from Rs 289,085 m in FY17 to Rs 337,355 m in FY21.

Over the past 5 years, the revenue of TATA POWER has grown at a CAGR of 3.9%.

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

The net profit of TATA POWER stood at Rs 5,653 m in FY21, which was up 55.3% compared to Rs 3,639 m reported in FY20.

This compares to a net profit of Rs 13,297 m in FY19 and a net profit of Rs 11,287 m in FY18.

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

What does the cash flow statement of TATA 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 TATA POWER reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 84,580 m as compared to Rs 73,753 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 6,676 m as compared to Rs -5,429 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -76,029 m as compared to Rs -51,096 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations70,14263,63945,73873,75384,580
From Investments-74,190-15,179-3,192-5,4296,676
From Financial Activity9,373-47,263-51,845-51,096-76,029
Net Cashflow5,2491,259-8,83017,72918,485

What does the Key Ratio analysis of TATA 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 TATA POWER reveals:

  • Operating profit margins witnessed a fall and stood at 20.2% in FY21 as against 24.7% in FY20.
  • Net profit margins grew from 1.2% in FY20 to 1.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 1.4 as compared to 1.8 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)17.125.927.224.720.2
Net Profit Margin (%)-0.44.24.41.21.7
Debt to Equity Ratio (x)1.91.51.91.81.4

Read: Latest Annual Report Analysis of TATA POWER

 

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