Description
FINANCIAL MANAGEMENT OF NTPC
Project work on Financial Management
NTPC
Prepared By:Siddharth S. Kothari
NTPC Limited is the largest power generating company with 27,350 MW capacity as on March 31, 2008 of India. Its a public sector company, which was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others. The company plans to double its capacity over the next five years and treble it by 2017. In addition to generation, NTPC also provides consultancy services to entities in the power domain.
Vision
To be one of the world’s largest and best power utilities powering India’s growth
Core Values
Customer focus Organizational pride Mutual respect and trust Initiative and speed Total quality
Sales Trend Analysis
350,000
Sales Trend Analysis--73%
325,952
20% 18% 20%
300,000 250,000 200,000 150,000 100,000 50,000 0 FY04 FY05 188,491 225,402
267,016
FY06
FY07
Segment Wise Sales Ratio
3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Generation--73% Others--78%
25% 16%
3,253,440
2,609,770
20%
2,253,170 Generation Others
1,883,710
-2%
3,410 FY04 FY05
3,330
36%
4,520 FY06
35%
6,080 FY07
Cost Structure Analysis
24%
11% Capital Reserves & surplus Secured Loan
9% 56%
Unsecured Loan
Shareholding Pattern
2.39%
7.05%
1.03%
0.30% Total Foreign Total Institutions Total Non Promoter Corporate Holding Total Promoters Total Public & Others 89.23%
2007
Cost Structure Analysis
Fuel--6% Employee Renumeration--24% General,&Administrative & Expenses--0%
70% 60% 50% 40% 30% 20% 10% 0%
65%
61%
61%
61%
Fuel Employee Renumeration General, Administrative & Expenses 5% 5% 4% 5% FY05 4% 5% FY06 4% 5% FY07
FY04
Fixed Assets Analysis
4.15% 0.48% 6.51% 0.49% Land Building Plant & Machinery Furniture, Fixtures Others 80.22%
4.75% 6.84%
8.64%
8.52% Land Building Plant & Machinery Furniture, Fixtures Others
2007
79.42%
2006
Investment Analysis
2%
2%3% CURRENT QUOTED INVESTMENT UNQUOTED INVESTMENT 95%
QUOTED INVESTMENT UNQUOTED INVESTMENT
2007
98%
2006
Working Capital Analysis
120,000
Working Capital-308%
111,088
69%
100,000 80,000 60,000 40,000 20,000 0 FY04 FY05 FY06
27% 90%
65,556
34,554
27,248
FY07
Liquidity Ratio
3.00 2.50 2.00 1.50 1.00 0.50 0.08 0.00 FY04 FY05 FY06 FY07 1.34 1.12 1.51 1.25 0.90
Current Ratio-93% Quick Ratio-98% Cash Ratio-2418%
2.58 2.07 1.69 1.38 2.22 1.89 Current Ratio Quick Ratio Cash Ratio
Current Assets is increasing at 68%
Current Liability is decreasing at 13%
Leverage Ratio
Debt Ratio--8%
1.20 1.00 0.80 0.60 0.40 0.20 0.00 0.51
Quick Ratio-15% Capital Employed to Networth-25%
1.10 0.85 0.48 0.46 0.96
0.89
0.45
0.49
0.42
0.47
0.52
FY04
FY05
FY06
FY07
Debt Ratio Debt-Equity Ratio Capital Employed to Net Worth
Capital Employed is increasing at 43%
Net Worth is increasing at 37%
Activity Ratio
FY07 0.77 0.54 0.61 0.73 0.54 0.62 0.70 0.53 0.63 0.66 0.48 0.60 1.00 1.74 2.93 1.80 4.07 2.10 6.52 2.21 6.92
Working Capital Turnover--58% Fixed Assets Turnover-17% Current Assets Turnover Ratio-3% Total Assets Turnover Ratio-13% Net Assets Turnover Ratio-2%
FY06
Working Capital Turnover Fixed Assets Turnover Current Assets Turnover Ratio Total Assets Turnover Ratio Net Assets Turnover Ratio
FY05
FY04
0.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Capital Employed is increasing at 43%
Net Worth is increasing at 37%
Activity Ratio
45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 40.11 30.77
Inventory Turnover Ratio-20%
Debts Turnover--35%
26.03 Inventory Turnover Ratio 16.40 10.85 12.68 11.41 12.99 Debtors Turnover
FY04
Sales is increasing at 73%
FY05
FY06
FY07
Debtors is increasing at 167%
Activity Ratio
35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 FY04 FY05 FY06 FY07 8.97 11.70 13.83 33.19 28.39 21.96 Days Of Inventory Holdings Collection Period 31.56
Days of Inventory Holding--16% Collection Period-55%
27.72
Inventory Turnover Ratio-20%
Debts Turnover--35%
Profitability Ratio
0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 FY04 FY05 FY06 FY07 0.05 0.05 0.05 0.05 0.28 0.26 0.22 0.21 0.43 Gross Profit Margin 0.40 0.39 Net Profit Margin Operating Expense Ratio COGS Ratio 0.63 0.75 0.70 0.70 0.69
Gross Profit Margin--38% Net Profit Margin--25% Operating Expense Ratio--8% Cost of Goods Sold--7%
Gross Profit & Net Profit is increasing at-8% & 30% Operating Expense is increasing at 32%
Sales in increasing at 73%
Profitability Ratio
Return On Investment--36% Return on Total Assets--29% Return on Net Assets--35% Return on Euity--5%
0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00
0.31 0.22 0.23 0.20 0.20 0.17 0.17 0.17
0.31 0.22
0.20 0.20 0.15 0.14 0.13 0.14
Return On Investments Return On Total Assets Return On Net Assets Return On Equity
FY04
FY05
FY06
FY07
Capital Employed is increasing at 43% Investment, Net Assets, Total Assets is increasing at 43%,178% & 43% resp.
Net Worth is increasing at 37%
Profitability Ratio
8.33 6.73 7.26 7.06
Earning Per Share-24% Dividend Per Share---57% Dividend Payout Ratio--65%
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00
Earning Per Share 3.2 Dividend Per Share 2.8 0.48 FY04 FY05 0.39 FY06 2.4 1.39 0.34 FY07 0.17 Dividend Payout Ratio
PAT is increasing at 225%. Company is retaining profit
Profitability Ratio
9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 1 2 3 4 0% 0% 3% 2% 1% 5% earning yield dividend yield 6%
Earning Yield--25% Dividend Yield--67%
8%
THANK YOU
doc_914756051.ppt
FINANCIAL MANAGEMENT OF NTPC
Project work on Financial Management
NTPC
Prepared By:Siddharth S. Kothari
NTPC Limited is the largest power generating company with 27,350 MW capacity as on March 31, 2008 of India. Its a public sector company, which was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, Domestic Banks, Public and others. The company plans to double its capacity over the next five years and treble it by 2017. In addition to generation, NTPC also provides consultancy services to entities in the power domain.
Vision
To be one of the world’s largest and best power utilities powering India’s growth
Core Values
Customer focus Organizational pride Mutual respect and trust Initiative and speed Total quality
Sales Trend Analysis
350,000
Sales Trend Analysis--73%
325,952
20% 18% 20%
300,000 250,000 200,000 150,000 100,000 50,000 0 FY04 FY05 188,491 225,402
267,016
FY06
FY07
Segment Wise Sales Ratio
3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Generation--73% Others--78%
25% 16%
3,253,440
2,609,770
20%
2,253,170 Generation Others
1,883,710
-2%
3,410 FY04 FY05
3,330
36%
4,520 FY06
35%
6,080 FY07
Cost Structure Analysis
24%
11% Capital Reserves & surplus Secured Loan
9% 56%
Unsecured Loan
Shareholding Pattern
2.39%
7.05%
1.03%
0.30% Total Foreign Total Institutions Total Non Promoter Corporate Holding Total Promoters Total Public & Others 89.23%
2007
Cost Structure Analysis
Fuel--6% Employee Renumeration--24% General,&Administrative & Expenses--0%
70% 60% 50% 40% 30% 20% 10% 0%
65%
61%
61%
61%
Fuel Employee Renumeration General, Administrative & Expenses 5% 5% 4% 5% FY05 4% 5% FY06 4% 5% FY07
FY04
Fixed Assets Analysis
4.15% 0.48% 6.51% 0.49% Land Building Plant & Machinery Furniture, Fixtures Others 80.22%
4.75% 6.84%
8.64%
8.52% Land Building Plant & Machinery Furniture, Fixtures Others
2007
79.42%
2006
Investment Analysis
2%
2%3% CURRENT QUOTED INVESTMENT UNQUOTED INVESTMENT 95%
QUOTED INVESTMENT UNQUOTED INVESTMENT
2007
98%
2006
Working Capital Analysis
120,000
Working Capital-308%
111,088
69%
100,000 80,000 60,000 40,000 20,000 0 FY04 FY05 FY06
27% 90%
65,556
34,554
27,248
FY07
Liquidity Ratio
3.00 2.50 2.00 1.50 1.00 0.50 0.08 0.00 FY04 FY05 FY06 FY07 1.34 1.12 1.51 1.25 0.90
Current Ratio-93% Quick Ratio-98% Cash Ratio-2418%
2.58 2.07 1.69 1.38 2.22 1.89 Current Ratio Quick Ratio Cash Ratio
Current Assets is increasing at 68%
Current Liability is decreasing at 13%
Leverage Ratio
Debt Ratio--8%
1.20 1.00 0.80 0.60 0.40 0.20 0.00 0.51
Quick Ratio-15% Capital Employed to Networth-25%
1.10 0.85 0.48 0.46 0.96
0.89
0.45
0.49
0.42
0.47
0.52
FY04
FY05
FY06
FY07
Debt Ratio Debt-Equity Ratio Capital Employed to Net Worth
Capital Employed is increasing at 43%
Net Worth is increasing at 37%
Activity Ratio
FY07 0.77 0.54 0.61 0.73 0.54 0.62 0.70 0.53 0.63 0.66 0.48 0.60 1.00 1.74 2.93 1.80 4.07 2.10 6.52 2.21 6.92
Working Capital Turnover--58% Fixed Assets Turnover-17% Current Assets Turnover Ratio-3% Total Assets Turnover Ratio-13% Net Assets Turnover Ratio-2%
FY06
Working Capital Turnover Fixed Assets Turnover Current Assets Turnover Ratio Total Assets Turnover Ratio Net Assets Turnover Ratio
FY05
FY04
0.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Capital Employed is increasing at 43%
Net Worth is increasing at 37%
Activity Ratio
45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 40.11 30.77
Inventory Turnover Ratio-20%
Debts Turnover--35%
26.03 Inventory Turnover Ratio 16.40 10.85 12.68 11.41 12.99 Debtors Turnover
FY04
Sales is increasing at 73%
FY05
FY06
FY07
Debtors is increasing at 167%
Activity Ratio
35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 FY04 FY05 FY06 FY07 8.97 11.70 13.83 33.19 28.39 21.96 Days Of Inventory Holdings Collection Period 31.56
Days of Inventory Holding--16% Collection Period-55%
27.72
Inventory Turnover Ratio-20%
Debts Turnover--35%
Profitability Ratio
0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 FY04 FY05 FY06 FY07 0.05 0.05 0.05 0.05 0.28 0.26 0.22 0.21 0.43 Gross Profit Margin 0.40 0.39 Net Profit Margin Operating Expense Ratio COGS Ratio 0.63 0.75 0.70 0.70 0.69
Gross Profit Margin--38% Net Profit Margin--25% Operating Expense Ratio--8% Cost of Goods Sold--7%
Gross Profit & Net Profit is increasing at-8% & 30% Operating Expense is increasing at 32%
Sales in increasing at 73%
Profitability Ratio
Return On Investment--36% Return on Total Assets--29% Return on Net Assets--35% Return on Euity--5%
0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00
0.31 0.22 0.23 0.20 0.20 0.17 0.17 0.17
0.31 0.22
0.20 0.20 0.15 0.14 0.13 0.14
Return On Investments Return On Total Assets Return On Net Assets Return On Equity
FY04
FY05
FY06
FY07
Capital Employed is increasing at 43% Investment, Net Assets, Total Assets is increasing at 43%,178% & 43% resp.
Net Worth is increasing at 37%
Profitability Ratio
8.33 6.73 7.26 7.06
Earning Per Share-24% Dividend Per Share---57% Dividend Payout Ratio--65%
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00
Earning Per Share 3.2 Dividend Per Share 2.8 0.48 FY04 FY05 0.39 FY06 2.4 1.39 0.34 FY07 0.17 Dividend Payout Ratio
PAT is increasing at 225%. Company is retaining profit
Profitability Ratio
9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 1 2 3 4 0% 0% 3% 2% 1% 5% earning yield dividend yield 6%
Earning Yield--25% Dividend Yield--67%
8%
THANK YOU
doc_914756051.ppt