22 DALAL STREET INVESTMENT JOURNAL I JULY 22 - AUG 4, 2019 DSIJ.in^
sank to 0.50 in Q4FY19 from4.51 in
Q4FY18.
The consolidated financial performance
for the year ended March 31, 2019,
stands as follows: Total income from
operations increased 14.24 per cent YoY
to 13,150.97 crore in FY19 from 11,512.09 crore in FY18. EBITDA
exhibited a minor improvement of 2.64
per cent as it rose to 3,199.48 crore in FY19 from3,117.13 crore in FY18.
EBITDA margin came in at 24.33 per
cent in FY19 in comparison to 27.08 per
cent in FY18. Net profit dipped 5.07 per
cent to 903.83 crore in FY19 from 952.12 crore in FY18. As a consequence,
net profit margin (NPM) stood at 6.87
per cent in FY19 while it was reported at
8.27 per cent in FY18. EPS declined 4.64
per cent YoY to 18.70 in FY19 from 19.61 in FY18.
On the valuation front, the P/E ratio
came in at 14.5x in FY19 as against 11.7x
in FY18. The EV/EBITDA multiple
improved to 6.8x in FY19 from 6.2x in
FY18. Dividend yield also increased to
1.8 per cent in FY19 from 1.0 per cent in
FY18. On the profitability front, the
return on equity (RoE) dropped to 10.8
per cent in FY19 from 12.9 per cent in
FY18. Meanwhile, the return on capital
employed (RoCE) remained more or less
flat at 8.5 per cent in FY19. The net
debt-to-equity ratio stood at 1.0 x in
FY19 in comparison to 1.1x in FY18.
Operating Performance
In FY19, most of the key operating
drivers which govern the success of the
company’s business demonstrated a
positive trend. These include an
should diminish the capriciousness in
reported earnings.The plant load factor (PLF) is a
significant parameter to gauge the
performance of a power plant. It
indicates the degree of plant capacity
utilisation for a period of time. A higher
PLF means the company is generating
higher revenues, as the cost of per unit
(kWh) energy generated will be lesser.
The PLF of the 422 MW coal-based
AMGEN power plant improved on the
back of better fuel cost as well as its status
as an embedded generation plant.
Meanwhile, the PLF of the 1147.5 MW
gas-based SUGEN mega power plant
dropped marginally in comparison to
FY18 due to lower off-take by long-term
beneficiaries and under-utilisation of
merchant capacity. However, compared
to other gas-based plants in India,
SUGEN performed at reasonably good
PLFs despite suffering a continuing
unavailability of domestic gas and higher
cost of imported LNG. This is
attributable to superior efficiency of
plant operations, prudent use of
imported LNG contracted at smart
prices and selling of power through short
term contracts. Improved solar
irradiation resulted in higher solar PLF.
Similarly, wind PLF was also enhanced
as the projects commissioned last year
successfully completed their first year of
full operations. Moreover, improved
wind speeds also helped augment
performance of the wind power plants.Sales growth in Ahmedabad came in at
5.02 per cent representing normal load
growth. In FY19, sales in Dahej increased
by 36.64 per cent due to the addition ofimprovement in RoE of regulated
businesses, increase in sales volumes and
contribution margin, decrease in
transmission & distribution (T&D)
losses and overall improvement in key
efficiency parameters.The liquidity position improved by
`108 crore during the year as the
company’s liquidity, including mutual
fund investments and bank/financial
institution deposits, stood at `1,253 crore
in FY19. During the year, the company
incurred capital expenditure of `1,692
crore. The net debt rose by `118 crore to
`9,455 crore in FY19.TPL followed cash-accounting for its
regulated distribution business until
FY18. It has now switched to accrual
accounting for its regulated distribution
circles w.e.f. FY19. TPL’s earnings were
unpredictable due to cash accounting.
Thus, the move to accrual accountingTorrent Power
BSE Code: 532779 CMP: `310.50
Particulars Amonut (` Crore)
Net Sales 13150.97
% Change 14.24%
Operating Profit 3389.07
% Change 0.25%
Net Profit 903.83
% Change -5.07%
Equity 480.62
EPS (`) 18.71
FV (`) 10
CMP (`) 310.50
P/E (x) 28.41
Dividend Yield (%) 0.71
Book Value (`) 186.64
(Trailing Four Quarter Data) CMP as on 16th July, 2019Peer Analysis
Company Name
Market Cap
(` in Cr.) EPS (`) ROA (%) ROE (%) ROCE (%) D/E (x)Adjusted P/E
(x)Dividend
Yield (%)EV/EBITDA
(x)
Torrent Power 14860.67 18.70 3.83 10.83 12.11 1.08 13.75 1.94 6.42
Tata Power 18554.75 8.10 1.39 7.45 9.08 2.96 9.11 1.76 10.26
Power Grid Corporation of India 107142.96 15.67 3.73 16.42 10.08 2.56 12.37 2.71 8.61
PTC India 1901.85 12.00 2.14 10.35 10.42 3.13 7.26 4.59 8.69
NTPC 126551.39 12.79 3.74 10.11 7.72 1.27 13.27 3.02 10.82
SJVN 10296.06 3.12 7.45 11.01 13.01 0.21 10.70 6.30 5.55
Source: Ace Equity Data as on 16th July, 2019Analysis Equity