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7/29/2019 annual report of fmcg sector
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FINANCIAL REPORT & ANALYSISOF
FMCG SECTOR (HUL, ITC AND P&G)
GROUP 5
Iniyan|Jatin|Indirasoni|Naveen|Souvik|Yogesh
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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
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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
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THANK YOU