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TATA POWER 2021-22 Annual Report Analysis
Mon, 20 Jun

TATA 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.

TATA POWER Income Statement Analysis

  • Operating income during the year rose 30.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 0.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.2% in FY22 as against 21.1% in FY21.
  • Depreciation charges increased by 13.7% and finance costs decreased by 3.6% YoY, respectively.
  • Other income grew by 13.5% YoY.
  • Net profit for the year grew by 11.3% YoY.
  • Net profit margins during the year declined from 1.9% in FY21 to 1.6% in FY22.

TATA POWER Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 327,033 428,157 30.9%
Other income Rs m 9,753 11,072 13.5%
Total Revenues Rs m 336,786 439,229 30.4%
Gross profit Rs m 68,934 69,394 0.7%
Depreciation Rs m 27,449 31,222 13.7%
Interest Rs m 40,104 38,642 -3.6%
Profit before tax Rs m 11,133 10,602 -4.8%
Tax Rs m 5,019 3,796 -24.4%
Profit after tax Rs m 6,115 6,806 11.3%
Gross profit margin % 21.1 16.2
Effective tax rate % 45.1 35.8
Net profit margin % 1.9 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TATA POWER Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 394 billion as compared to Rs 314 billion in FY21, thereby witnessing an increase of 25.4%.
  • Long-term debt stood at Rs 327 billion as compared to Rs 300 billion during FY21, a growth of 8.9%.
  • Current assets rose 23% and stood at Rs 314 billion, while fixed assets rose 11% and stood at Rs 811 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 1,126 billion as against Rs 987 billion during FY21, thereby witnessing a growth of 14%.

TATA POWER Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 208,223 224,416 7.8
 
Current Liabilities Rs m 313,958 393,683 25.4
Long-term Debt Rs m 300,449 327,297 8.9
Total Liabilities Rs m 986,548 1,125,500 14.1
 
Current assets Rs m 256,097 314,428 22.8
Fixed Assets Rs m 730,452 811,072 11.0
Total Assets Rs m 986,548 1,125,500 14.1
* 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 FY22 stood at Rs 67 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -63 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -12 billion, an improvement of 84% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -7 billion from the Rs 17 billion net cash flows seen during FY21.

TATA 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 83,451 66,927 -19.8%
Cash Flow from Investing Activities Rs m 6,676 -62,766 -
Cash Flow from Financing Activities Rs m -76,029 -11,832 -
Net Cash Flow Rs m 17,356 -7,409 -
* 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 2.1, an improvement from the EPS of Rs 1.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 194.8, stands at 91.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.1 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 102.3 134.0
TTM Earnings per share Rs 1.9 2.1
Diluted earnings per share Rs 1.9 2.1
Price to Cash Flow x 9.8 15.1
TTM P/E ratio x 53.9 91.4
Price / Book Value ratio x 1.1 2.6
Market Cap Rs m 226,789 574,602
Dividends per share (Unadj.) Rs 1.6 1.8
* 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 FY22, from 0.8x 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 deteriorated and stood at 1.3x during FY22, from 1.3x 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 3.0% during FY22, from 2.9% 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 declined and down at 8.9% during FY22, from 10.1% 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 declined and down at 4.0% during FY22, from 4.7% 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 0.8 0.8
Debtors’ Days Days 6 5
Interest coverage x 1.3 1.3
Debt to equity ratio x 1.4 1.5
Return on assets % 4.7 4.0
Return on equity % 2.9 3.0
Return on capital employed % 10.1 8.9
* 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 121.4 to Rs 194.8, registering a gain of Rs 73.4 or around 60.4%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,784.0 (down 1.5%). Over the last one year it has moved up from 2,762.2 to 3,784.0, a gain of 1,022 points (up 37.0%).

Overall, the S&P BSE SENSEX is down 1.4% 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 238.0 per share. You can check out the latest share price performance of TATA POWER here...

What was the revenue of TATA POWER in FY22? How does it compare to earlier years?

The revenues of TATA POWER stood at Rs 439,229 m in FY22, which was up 30.4% compared to Rs 336,786 m reported in FY21.

TATA POWER's revenue has grown from Rs 272,738 m in FY18 to Rs 439,229 m in FY22.

Over the past 5 years, the revenue of TATA POWER has grown at a CAGR of 12.7%.

What was the net profit of TATA POWER in FY22? How does it compare to earlier years?

The net profit of TATA POWER stood at Rs 6,806 m in FY22, which was up 11.3% compared to Rs 6,115 m reported in FY21.

This compares to a net profit of Rs 3,639 m in FY20 and a net profit of Rs 13,297 m in FY19.

Over the past 5 years, TATA POWER net profit has grown at a CAGR of -11.9%.

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 decreased in FY22 and stood at Rs 66,927 m as compared to Rs 83,451 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -62,766 m as compared to Rs 6,676 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -11,832 m as compared to Rs -76,029 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations63,63945,73873,75383,45166,927
From Investments-15,179-3,192-5,4296,676-62,766
From Financial Activity-47,263-51,845-51,096-76,029-11,832
Net Cashflow1,259-8,83017,72917,356-7,409

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 16.2% in FY22 as against 21.1% in FY21.
  • Net profit margins declined from 1.9% in FY21 to 1.6% in FY22.
  • Debt to Equity ratio for FY22 stood at 1.5 as compared to 1.4 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)25.927.224.721.116.2
Net Profit Margin (%)4.24.41.21.91.6
Debt to Equity Ratio (x)1.51.91.81.41.5

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