NHPC LTD 2017-18 Annual Report Analysis
Tue, 25 Sep

NHPC LTD has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

NHPC LTD Income Statement Analysis

  • Operating income during the year fell 10.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 54.2% in FY18 as against 56.2% in FY17.
  • Depreciation charges increased by 1.2% YoY and finance costs decreased by 14.0% YoY.
  • Other income declined by 26.7% YoY.
  • Net profit for the year declined by 26.1% YoY.
  • Net profit margins during the year declined from 27.3% in FY17 to 23.0% in FY18.

NHPC LTD Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m86,26177,512-10.1%
Other incomeRs m15,02811,014-26.7%
Total RevenuesRs m101,28988,526-12.6%
Gross profitRs m48,44342,018-13.3%
DepreciationRs m14,61814,7911.2%
InterestRs m10,7349,226-14.0%
Profit before taxRs m38,11929,015-23.9%
TaxRs m10,5448,629-18.2%
Profit after taxRs m27,60220,385-26.1%
Gross profit margin%56.254.2
Effective tax rate%27.729.7
Net profit margin%27.323.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NHPC LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 61 billion as compared to Rs 56 billion in FY17, thereby witnessing an increase of 9.0%.
  • Long-term debt down at Rs 167 billion as compared to Rs 172 billion during FY17, a fall of 3.0%.
  • Current assets fell 12% and stood at Rs 73 billion, while fixed assets rose 1% and stood at Rs 403 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 604 billion as against Rs 602 billion during FY17, thereby witnessing a growth of 0%.

NHPC LTD Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m290,148300,1793.5
 
Current LiabilitiesRs m55,59860,6199.0
Long-term DebtRs m172,456167,282-3.0
Total LiabilitiesRs m601,771603,8760.3
 
Current assetsRs m83,28673,492-11.8
Fixed AssetsRs m 398,147402,6441.1
Total AssetsRs m601,771603,8760.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NHPC LTD Cash Flow Statement Analysis

  • NHPC LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 51 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -13 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -39 billion, an improvement of 51% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -530 million from the Rs -13 billion net cash flows seen during FY17.

NHPC LTD Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m83,29250,978-38.8%
Cash Flow from Investing ActivitiesRs m-18,645-12,879-
Cash Flow from Financing ActivitiesRs m-78,116-38,629-
Net Cash FlowRs m-13,470-530-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NHPC LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an decline from the EPS of Rs 2.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 23.3, stands at 13.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 4.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs8.47.6
TTM Earnings per shareRs2.72.0
Diluted earnings per shareRs2.51.8
Price to Cash Flow x5.77.3
TTM P/E ratiox12.113.1
Price / Book Value ratiox0.91.0
Market CapRs m239,035257,947
Dividends per share (Unadj.)Rs1.81.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NHPC LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.5x during FY17. 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 4.1x during FY18, from 4.6x during FY17. 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 6.8% during FY18, from 9.5% during FY18. 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 8.2% during FY18, from 10.6% during FY17. 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 4.9% during FY18, from 6.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox1.51.2
Debtors’ DaysDays7863
Interest coveragex4.64.1
Debt to equity ratiox0.60.6
Return on assets%6.44.9
Return on equity%9.56.8
Return on capital employed%10.68.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NHPC LTD Share Price Performance

Over the last one year, NHPC LTD share price has moved up from Rs 27.3 to Rs 23.3, registering a loss of Rs 4.0 or around 14.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,968.7 (down 1.2%). Over the last one year it has moved down from 2,229.1 to 1,968.7, a gain of 260 points (down 11.7%).

Overall, the S&P BSE SENSEX is up 15.1% over the year.

(To know more, check out historical annual results for NHPC LTD and quarterly results for NHPC LTD)