10-11-2012, 12:12 PM
FINANCIAL REPORT & ANALYSIS OF FMCG SECTOR (HUL, ITC AND P&G)
FINANCIAL REPORT.pptx (Size: 171.99 KB / Downloads: 160)
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).
Findings from Balance Sheet- NTPC
total borrowings have increased by 16%
The amount raised through term loans, bonds and foreign currency borrowings was 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.
RATIO ANALYSIS – PROFITABILITY RATIOS
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 Valuerice-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.