annual report of fmcg sector


2/18

About NTPC

Largest power producer in the country

planning to further increase its capacity to 67000 MW (32000 MW additional) by

the end of 12th plan

NTPC operated its plants at an average PLF and PAF of 87% and 90% against all

India PLF and PAF of 77% and 82% respectively.

The company which is the largest consumer of coal in the country has had a

nagging time in the recent past due to delayed payments by state electricity

boards (SEBs), and fuel supply shortages in several of its plants.

NTPC has managed to source its coal requirement with relative ease, partly

assisted by the preferential status accorded to it by Coal India Limited (CIL).


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Findings from the Income Statement-NTPC

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

2008 2009 2010 2011 2012

Net Sales

Other Income

Total Income

-10000

0

10000

20000

30000

40000

50000

60000

2008 2009 2010 2011 2012

Raw Materials

Power & Fuel cost

Employee Cost

Other

Manufacturing

Expenses

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

2008 2009 2010 2011 2012

Total Income

Total Expenditure

Operating Profit


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Findings from Balance Sheet- NTPC

total borrowings have increased by 16%

The amount raised through term loans, bonds and foreign currency borrowingswas used for capital expenditure and refinancing, while amount raised through

public deposits have been used for working capital purposes

During the financial year 2011-12, the investments decreased by about 9% mainly

due to redemption of bonds

gross block of the Company increased by 12% on account of capitalization of one

500 MW unit of Simhadri- II and 60 36th Annual Report 2011-2012 one 660 MW

unit of Sipat-I.

Long-term borrowings have increased from 47,000 cr to 54,000 cr.


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Cash Flow Analysis


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Net cash used in investing activities increased by 44% and was 11,037 crore in fi

nancial year 2011-12 as compared to 7,656 crore in the previous year.

Cash flows on investing activities arise from expenditure on setting up power

projects, investment of surplus cash in various securities, investments in joint

ventures and subsidiaries.

During the financial year 2011-12 the Company had an infl ow of ` 8,736 crore

from long term borrowings as against ` 9,046 crore in the previous year.


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THE DUPONT RATIO ANALYSIS

ROE = (PAT/Sales) * (Sales/Total Assets) * (Total Assets/Capital Employed) *

(Capital employed/Equity)

The three components of the DuPont ratio, as represented in equation, cover the

areas of profitability, operating efficiency and leverage.

Net Profit Margin:

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012

NTPC

Reliance Power

TATA POWER


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Total Asset Turnover

0

0.1

0.2

0.3

0.4

0.5

0.6

2008 2009 2010 2011 2012

NTPC

Reliance Power

TATA POWER

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2008 2009 2010 2011 2012

NTPC

Reliance Power

TATA Power

Leverage Multiplier


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Return on Equity:

0

2

4

6

8

10

12

14

16

2008 2009 2010 2011 2012

NTPC

Reliance Power

TATA Power

0

2

4

6

8

10

12

14

16

2008 2009 2010 2011 2012

NTPC

Reliance Power

TATA Power

Return on Capital Employed:

ROE and ROCE:

Return on capital employed and Return on Equity is comparatively higher for NTPC

which is an indication of strong fundamentals. This could be one of the reasons for

its higher price to book value.


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RATIO ANALYSIS LIQUIDITY RATIOS

CURRENT RATIO QUICK RATIO

0

0.5

1

1.5

2

2.5

3

3.5

2012 2011 2010 2009 2008

NTPC

TATA POWER

0

0.5

1

1.5

2

2.5

3

2012 2011 2010 2009 2008

NTPC

TATA POWER


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Debt-Equity RatioAll three companies have a high debt-to-equity ratio as power

sector is a capital intensive market.

Interest Coverage RatioNTPCs Interest Coverage Ratio is significantly higherthan the TATA Power and Reliance Power. This means that NTPC is more capable of

making its debt payments than other two.

RATIO ANALYSIS SOLVENCY RATIOS DEBT-EQUITY RATIO INTEREST COVERAGE RATIO

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2008 2009 2010 2011 2012

NTPC

RELAINCE POWER

TATA POWER

0

2

4

6

8

10

12

14

2008 2009 2010 2011 2012

NTPC

RELAINCE POWER

TATA POWER


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RATIO ANALYSIS EFFICIENCY RATIOS DAYS OF OPERATING CYCLE DAYS OF WORKING CYCLE


13/18

P/E Ratio: NTPC's P/E ratio is less than the average P/E ratio. This P/E shows that

NTPC's share is valued correctly. Industry's average is 14.54. TATA power's share is

overvalued to a small extend.

Price To Book Value:Price-to-Book Value greater than 1 means investors are willing

to pay more than it's shareholers' share. The drastic change in the P/BV ratio is due

to IPO offered by Reliance Power. Denominator has increased by a large amount as

new shares were issued. Due to Global recession, 2008-09, the market share for

three companies nosedived. As the numerator decreased, P/BV ratio also tumbled

down.

RATIO ANALYSIS PROFITABILITY RATIOSP/E RATIO PRICE TO BOOK VALUE

0

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012

NTPC

Reliance Power

TATA Power

0

1

2

3

4

5

6

2008 2009 2010 2011 2012

NTPC

Reliance Power

Tata Power


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Price to cash flow (MV/CFO)


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MV/Total Asset


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MV/Sales NTPC Reliance Power TATA Power

2008 4.35 0 4.36

2009 3.52 0 2.33

2010 3.66 4,190.90 4.56

2011 2.88 1,000.07 4.52

2012 2.15 495.95 2.79

MV/ Revenue

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2008 2009 2010 2011 2012

NTPC

TATA Power


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EVA and MVA


18/18

THANK YOU

Documents

annual report of fmcg sector