Power Generation Industry

8/9/2019 Power Generation Industry

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INTRODUCTION

The critical role played by the power industry in the economic progress of a country has to

be emphasized. A self sufficient power industry is vital for a nation to achieve economicstability.

Before Independence

The British controlled the Indian power industry firmly before Independence. The then

legal and policy framework was conducive to private ownership, with not much regulationwith regard to operational safety.

Post Independence

Immediately after Independence, the country was faced with capacity restraint. India

adopted a socialist structure for economic growth and all the major industries were

controlled by public sector enterprises. By 1970's India had nationalized most of its energyassets, due to its commitment to social goals. By the late 1980's the Indian economy felt

the strain of the socialist agenda followed since independence. Faced with a serious

deterioration in public finance and balance of payment crisis, the Union government aspart of its policy of economic liberalization allowed greater investment by private sector in

the power industry.

Constitutional Position

Power as a matter of legislative and executive competence, falls in the Concurrent List

(List III of the Seventh Schedule to the Constitution of India).Both the Parliament andstate legislatures have the rights to pass laws on the matter and any law passed by the

Parliament overrides the existing state laws unless

The existing law is conserved or saved from such a repeal or

A law passed by the state legislature receives acknowledgment from the President

of India.

Post Liberalization

Understanding the critical part played by the power industry, the Union government

passed several laws and restructured the Power Industry to gear it up to meet the

challenges posed to the Indian economy post Liberalization.

Electricity Bill 2001

Learning from the experience gained through various reform initiatives, the Indian

government passed the Electricity Bill 2001.The Bill seeks to

Consolidate and rationalize existing laws.

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To address the issues of developing industry including regulation, power trading,

non discriminatory open access, choice of dispensing with vertically integrated state

enterprises and encouraging private enterprise.

Energy Conservation Act 2001

The Act was enacted by the Indian government to facilitate stringent steps to ensure theefficient use of energy and its conservation. A Bureau of Energy Efficiency was set up to

monitor and regulate the Power Industry according to the provisions of the act.

Non Renewable Energy

Fossil fuels

The Industrial Revolution in Europe in the 19th century forced human's to seek alternative

sources of fuel to cater to the increasing demand. Focus was shifted to fossil fuels as an

alternate source of energy.

Fossil fuels were formed millions of years ago. They are nothing but fossilized organic

remains that after millions of years has been converted into oil, gas and coal. Because thisprocess takes a long time, they are known as non renewable.

Coal

It is the most easily available fossil fuel in the world. It is mostly carbon and is used as a

combustion fuel, especially after the Industrial Revolution. Coal can further be divided

into lignite, bituminous and anthracite. Lignite and Bituminous have lesser percentage of

carbon and therefore burn faster. They are not environmentally friendly, WhereasAnthracite has about 98% carbon and therefore burns slowly and is more environmentally

friendly. Coal can be found in both underground mines and open mines.

Though Petroleum gained prominence through the 20th century, coal still continues to be

the most used raw material for power generation.

Oil and Gas

Oil and Gas is mostly found in underground rocks. Millions of years ago when plants andanimals died, they got buried in layers of mud and sand. The earth's crust changed its

shape and put immense pressure and heat on the dead plants and animals. Over a period oftime, the energy in those plants and animals changed into hydrocarbon liquids and gases.They then turned into chemicals called hydrocarbons .Most of the hydrocarbons is found

under the sea bed. Oil has a disastrous effect on the environment and many scientists

believe the main reason for global warming

Natural gas is usually found near a source of oil. It is a mixture of light hydrocarbons. It is

lighter than air and is odorless. It is therefore mixed with a chemical that gives it a strong

odour and thereby easy to detect in case of a leak. It is the cleanest burning fossil fuel.

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can be used to generate power with the same power plant that are burning fossil fuels andis very much environmentally friendly.

It is being used in the western countries for applications such as combined heat and powergeneration. In India 90% of the rural households and 15% of the urban households use bio

mass fuel.

Nuclear Energy

Nuclear energy can be created in nuclear reactors under strict human control. The nuclearpower can be generated by the fission of uranium, plutonium or thorium or the fusion of

hydrogen into helium. Nowadays mostly Uranium is used for generating nuclear power.

With a view to increase India's dependence on nuclear energy to offset the energy crisis in

the country, the Indian government entered into an agreement with the government ofUSA called the 123 agreement. This agreement aims to assuage greater cooperation

between the two countries in the field of nuclear technology.

Ministry of Power

Indian power sector comes under the Ministry of Power India. Earlier known as Ministry

of Energy, it comprised of separate departments for power, coal and non-conventional

sources of energy. In 1992, the Ministry of Power started working independently with

work areas covering planning and strategizing the Indian power projects and policies.The power management and implementation of the various power projects undertaken,

formulation and amendments of the power laws in India, management of the power supply

in India, monitoring of the power plants in india, power companies in India, powergeneration in India and other power shortage problems etc.

The Ministry of Power (MoP) is coordinated by Central Electricity Authority (CEA) in alltechnical and economic aspects. Along with the CEA, other subsidiary organizations of

the Mop are:

National Thermal Power Corporation (NTPC)

National Hydro Electric Corporation (NHEC) Power Finance Corporation of India (PFCI)

Nuclear Power Corporation of India Limited

North Eastern Electric Power Corporation (NEEPC)

Rural Electrification Corporation (REC)

Damodar Valley Corporation (DVC) Bhakra Beas Management Board (BBMB)

Tehri Hydro Development Corporation (THDC) Satluj Jal Vidyut Nigam (SJVN)

Power Grid Corporation of India Ltd (Power Grid India)

Power Trading Corporation (PTC) Bureau of Energy Efficiency (BEE)

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Power Infrastructure in India:

The power industry in India derives its funds and financing from the government, some

private players that have entered the market recently, World Bank, public issues and otherglobal funds. The Power Ministry India has set up Power Finance Corporation of India

that looks after the financing of the power sector in India. The Power Finance Corporation

Limited provides finance to major power projects in India for power generation andconversion, distribution and supply of power in India.

Power Finance Corporation (PFC) Ltd India also looks after the installation of any new

power projects as well as renovation of an existing power project India. The PFC in

association with central electricity authority and the ministry of power facilitates the

development in infrastructure of the power sector India. They have taken up constructionof mega power projects that will answer to the power shortage in various states through

power transmission through regional and national power grids.

Power Supply Units India:

Power is derived from various sources in India. These include thermal power, hydropoweror hydroelectricity, solar power, biogas energy, wind power etc. the distribution of the

power generated is undertaken by Rural Electrification Corporation for electricity power

supply to the rural areas, North Eastern Electric Power Corporation for electricity supply

to the North East India regions and the Power Grid Corporation of India Limited for an allIndia supply of electrical power in India.

Thermal Power in India is mainly generated through coal, gas and oil. India coal

power forms a majority share of the source of power supply in India. The electricpower in India is generated at various thermal power stations in India. The power

generated at these thermal power plants is then distributed all over India through a

network of powergrid at regional and national levels. The power ministryorganization responsible for the thermal power management in India is the NTPC.

Hydropower is India is one of the mega power generators in India. Various

hydropower projects and hydro power plants have been set up by the ministry ofpower for generation of hydro power in India. Various dams and reservoirs are

constructed on major rivers and the kinetic energy of the flowing water is utilized

to generate hydroelectricity. The power generator here is the running water. Thehydroelectric power plants and the hydro power generation companies are

managed by the National Hydro Electric Power Corporation (NHPC). Wind Power in India is available in plenty as India witnesses high intensity winds

in various regions due to the topographical diversity in India. Efforts have beenmade to utilize this natural source of energy available free of cost for wind power

generation. Huge wind energy farms have been set up by the government for

tapping the wind energy by using gigantic windmills and them converting thekinetic energy of the wind into electricity by the use of power converters. The wind

power advantages start with the very fact that a wind energy power plant does not

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require much infrastructure input and the raw material i.e. wind itself is availablefree of cost.

Solar Power in India is being utilized to generate electricity on smaller scale by

setting up massive solar panels and capturing the solar power. Solar power India isalso being utilized by the power companies in India to generate solar energy for

domestic and small industrial uses.

Nuclear Power in India is generated at huge nuclear power plants and nuclearpower stations in India. A nuclear power plant generates the electricity using

nuclear energy. All the nuclear power plants in India are managed by the Nuclear

Power Corp of India Ltd (NPCL). The electricity from all India nuclear plants isdistributed by the NPCL as per the nuclear power project scheme.

Biogas Production in India is still in its infancy stage. Also the number of biogas

plants in India is still very low. India being the largest domestic cattle producer has

plenty of biogas fuel and thus utilization of the fuel for mass biogas production bysetting up more biogas plants in India would solve the power shortage problem to

some extend.

Power for ALL by 2012

The Government of India has an ambitious mission of POWER FOR ALL BY 2012. Thismission would require that our installed generation capacity should be at least 200,000

MW by 2012 from the present level of 144,564.97 MW. Power requirement will double

by 2020 to 400,000MW.

INDUSTRY INVESTMENT

Companies Market Capital-2009 (in crores)

NTPC 175452

Tata Power 30372

Reliance Infra 28194

Torrent Power 14058

CESC 4771

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Industry Investmen

NTPC

69%

Tata Power

12%

Reliance Infra

11%

Torrent Power

6%

CESC

2%

NTPC

Tata Power

Reliance Infra

Torrent Power

CESC

In power generation industry, we considered Top 5 companys investment in 2009. theinvestment in NTPC is 175452 cr because of this is a Public Sector Company and

remaining 4 companies are Tata Power, Reliance Infra, Torrent Power, CESC investments

are 30372 cr, 28194 cr, 14058 cr, 4771 cr, respectively

INDUSTRY GROWTH

Power development is the key to the economic development. The power Sector has been

receiving adequate priority ever since the process of planned development began in 1950.

The Power Sector has been getting 18-20% of the total Public Sector outlay in initial planperiods. Remarkable growth and progress have led to extensive use of electricity in all thesectors of economy in the successive five years plans. Over the years (since 1950) the

installed capacity of Power Plants (Utilities) has increased to 89090 MW (31.3.98) from

meagre 1713 MW in 1950, registering a 52d fold increase in 48 years. Similarly, theelectricity generation increased from about 5.1 billion units to 420 Billion units 82 fold

increase. The per capita consumption of electricity in the country also increased from 15

kWh in 1950 to about 338 kWh in 1997-98, which is about 23 times. In the field of Rural

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Electrification and pump set energisation, country has made a tremendous progress. About85% of the villages have been electrified except far-flung areas in North Eastern states,

where it is difficult to extend the grid supply.

Growth of Electricity Generation during the year 2009-10 (up to August, 2009):-

The electricity Generation in the month of August, 2009 has been about 65 Billion unitsrecording a growth of 9% despite reduction in hydro generation to the tune of 12% due to

failure of monsoon. High growth could be achieved due to increase in thermal generation

by 15%. The cumulative generation during the year 2009-10 (up to August, 2009) hasbeen about 319 Billion units representing a growth rate of 6.3% despite decline in hydro

generation (-11%). There was a growth of 10.5% in thermal and nuclear generation due to

availability of gas from KG basin, enhanced availability of nuclear fuel and higher import

of coal by power plants. 18 MMSCMD gas had been allocated to the existing gas basedpower plants from KG basin by Govt. of India to utilize the capacity stranded due to

shortage of gas. The pattern of energy generation during the previous two years and the

current year is graphically depicted as under:

The annual growth in power generation during 10th Plan period and the first two year of11th Plan has been as under:

10th Plan Growth in Achievement(%)

2002-03 3.12003-04 5.0

2004-05 5.2

2005-06 5.1

2006-077.3

11th Plan

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2007-08 6.3

2008-09 2.7

The growth in electricity generation during 2008-09 was constrained due to unsatisfactoryperformance of some of new thermal generatineg units commissioned during 2006-07 and

2007-08, delay in cokkissioning of new units during 2008-09, long outages, shortage of

coal/gas/nuclear fuel, poor hydrology, etc.

MARKET STRATEGIES

Power Generation Strategy with focus on low cost generation, optimization ofcapacity utilization, controlling the input cost, optimisation of fuel mix,

Technology upgradation and utilization of Non Conventional energy sources

Transmission Strategy with focus on development of National Grid includingInterstate connections, Technology upgradation & optimization of transmission

cost.

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Distribution strategy to achieve Distribution Reforms with focus on Systemupgradation, loss reduction, theft control, consumer service orientation, quality

power supply commercialization, Decentralized distributed generation and supply

for rural areas.

Regulation Strategy aimed at protecting Consumer interests and making the sector

commercially viable.

Financing Strategy to generate resources for required growth of the power sector.

Conservation Strategy to optimise the utilization of electricity with focus on

Demand Side management, Load management and Technology upgradation toprovide energy efficient equipment / gadgets.

Communication Strategy for political consensus with media support to enhance the

genera; public awareness.

PRODUCTION

Electricity - production: 665.3 billion kWh (2007 est.)

Year Electricity - production Rank Percent ChangeDate of

Information

2003 533,300,000,000 7 2001

2004 533,300,000,000 7 0.00 % 2001

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2005 547,200,000,000 7 2.61 % 2002

2006 556,800,000,000 7 1.75 % 2003

2007 630,600,000,000 5 13.25 % 2004

2008 665,300,000,000 5 5.50 % 2007 est.

2009 665,300,000,000 5 0.00 % 2007 est.

Production

53,

330

53,

330

54,

720

55,

680

63,

060

66,

530

66,

530

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1 2 3 4 5 6 7

Years

KWH(incrores)

Production

Definition: This entry is the annual electricity generated expressed in kilowatt-hours. The

discrepancy between the amount of electricity generated and/or imported and the amountconsumed and/or exported is accounted for as loss in transmission and distribution.

Generation

Grand Total Installed Capacity is 147,402.81 MW

Thermal Power

Current installed capacity of Thermal Power(as of 12/2008) is 93,392.64 MW which is

63.3% of total installed capacity.

Current installed base of Coal Based Thermal Power is 77,458.88 MW which

comes to 53.3% of total installed base.

Current installed base of Gas Based Thermal Power is 14,734.01 MW which is

10.5% of total installed base. Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9%

of total installed base.

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http://en.wikipedia.org/wiki/Fossil_fuel_power_planthttp://en.wikipedia.org/wiki/Fossil_fuel_power_plant


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The state of Maharashtra is the largest producer of thermal power in the country

Hydro Power

India was one of the pioneering states in establishing hydro-electric powerplants, The

power plant at Darjeeling and Shimsa (Shivanasamudra) was established in 1898 and 1902

respectively and is one of the first in Asia. The installed capacity as of 2008 wasapproximately 36647.76. The public sector has a predominant share of 97% in this sector.

Nuclear Power

Currently, seventeen nuclear power reactors produce 4,120.00 MW (2.9% of total installed

base).

Main article:Nuclear power in India

Renewable Power

Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of totalinstalled base with the southern state of Tamil Nadu contributing nearly a third of

it(4379.64 MW) largely through wind power.

SALES

The sales of the Top five power generation companies have shown below:

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Companies 2006

(in crores)

2007

(in crores)

2008

(in crores)

2009

(in crores)NTPC 26319 32817 37302 42197

Tata Power 4553 4919 5910 7257

Reliance Infra 3964 5752 6332 9640
http://en.wikipedia.org/wiki/Hydroelectric_Powerhttp://en.wikipedia.org/wiki/Darjeelinghttp://en.wikipedia.org/w/index.php?title=Shimsa&action=edit&redlink=1http://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Nuclear_power_in_Indiahttp://en.wikipedia.org/wiki/Renewable_energyhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Hydroelectric_Powerhttp://en.wikipedia.org/wiki/Darjeelinghttp://en.wikipedia.org/w/index.php?title=Shimsa&action=edit&redlink=1http://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Nuclear_power_in_Indiahttp://en.wikipedia.org/wiki/Renewable_energyhttp://en.wikipedia.org/wiki/Tamil_Nadu


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Sales

26319

32817

37302

42197

4553

4919

5910

7257

3964

5752

6335

9640

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2006 2007 2008 2009

Years

ratios NTPC

Tata Power

Reliance Infra

NTPC: This is Public Sector Company. These company sales are continuously increased

from 26319 cr in 2006 to 42197 cr in 2009.

Tata Power: This is Private Sector Company. These company sales are continuously

increased from 4553 cr in 2006 to 7257 cr in 2009.

Reliance Infra: This is Private Sector Company. These company sales are continuouslyincreased from 3964 cr in 2006 to 9640 cr in 2009.

All the above sales are good except Torrent Power and CESC. These two companies salesare fluctuating because of Govt policies in prices of electricity.

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EXPORTS

India offers to export electricity to Nepal

Nepals Water Resources Ministry, said Nepal has received a proposal from India to

export as much as 200 megawatts of electricity.

Upadhaya said some of the existing transmission lines have to be upgraded to import the

electricity. He did not say now long the process would take.

Nepal has imported about 50 megawatts of power in the past, but the amount has not been

enough to make up for the shortfall.

Nepalese citizens receive only eight hours of electricity a day because of low water levels

in reservoirs that drive hydroelectric plants. The government-owned Nepal ElectricityAuthority imposed a 16-hour-per-day power outage because of worsening power crisis.

Nepal produces only about half of its electricity needs, in part because of unusually low

levels this year in reservoirs that feed the country's hydroelectric plants.

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SWOT ANALYSIS

Strengths:

The company has 180 products under 30 major product groups that cater to the

needs of the core sector like power, industry, transmission, transportation, defence,

telecommunications and oil business.

BHEL's ability to acquire modern technology and make it suitable to Indian

conditions has been an exceptional strength of the company.

Strong relationship with NTPC is the strength, as NTPC is planning a capacity

expansion of Rs. 52 bn and based on the past, 85% of NTPC projects have beenbagged by BHEL. The company also enjoys purchase price preference.

Weaknesses:

PSU status is a big weakness for BHEL as it is subject to their rules and

regulations and is forced to carry a huge amount of labor force, which it is not able

to retrench.

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The company offers very stringent credit facilities to the customers and this is a

weakness when compared in the face of rising competition. On the other hand their

customers in the power segment, SEBs, have a huge amount of receivablesstanding against their name in the company's balance sheet. This is a major

weakness for the company.

The company is vertically integrated, which could have been avoided by

outsourcing its components for power generation and transmission. This could

have reduced the cost.

Opportunities:

The power sector reforms are expected to pick up in the near future in India, whichwould directly benefit BHEL.

Increase in defence budget will increase the topline for the company.

NTPC is planning additional capacities to the tune of 2,800 MW, at a cost of Rs 52

bn. BHEL could benefit a lot as it has happened in the past that significant portionof the project of NTPC is handled by BHEL. Nearly 85% of the NTPC projects

were assigned to BHEL only.

The business of modernization and renovations of power plants is expected to

grow in India.

The disinvestment plans of the government would bring in new resources and

experience into the company.

Joint Venture with Siemens in the name of Powerplant Performance ImprovementLtd. (PPIL), is a major strength for the company. This tie-up will be beneficial as

there is a lot of scope for business. During FY00 the PPIL received orders worth

Rs. 320 crore.

Threats:

The global trend of consolidation has already resulted in a fall in turnover of the

company and this will prove to be a major threat in the years to come as well.

The company is dependent on NTPC to a great extent.

Recently, the government has permitted the import of second hand capital goods

that are 10 years old without the need for a license. This move will definitelyincrease competitive pressures for BHEL.

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TOP PLAYERS IN POWER GENERATION

1. NTPC

NTPC, India's largest power company, was set up in 1975 to accelerate power

development in India. It has emerged as an Integrated Power Major, with a significant

presence in the entire value chain of power generation business.NTPC ranked 317th in the 2009, Forbes Global 2000 ranking of the Worlds biggest

companies. With a current generating capacity of 30,644 MW, NTPC has embarked on

plans to become a 75,000 MW company.

NTPCs quest for diversification started with its foray into Hydro Power. It has, since

then, been moving towards becoming a highly diversified company through backward,

forward and lateral integration. The company is well on its way to becoming an

Integrated Power Major, having entered Hydro Power, Coal Mining, Power Trading,Equipment Manufacturing and Power Distribution. NTPC has made long strides in

developing its Ash Utilisation business. In its pursuit of diversification, NTPC has also

developed strategic alliances and joint ventures with leading national and international

companies.

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Hydro Power: In order to give impetus to hydro power growth in the country and

to have a balanced portfolio of power generation, NTPC entered hydro power

business with the 800 MW Koldam hydro project in Himachal Pradesh. Two more

projects have also been taken up in Uttarakhand. A wholly owned subsidiary,

NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW.

Coal Mining: In a major backward integration move to create fuel security, NTPC

has ventured into coal mining business with an aim to meet about 20% of its coal

requirement from its captive mines by 2017. The Government of India has so far

allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint

venture route. Coal Production is likely to start in 2009-10.

Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned

subsidiary was created for trading power leading to optimal utilization of NTPCs

assets. It is the second largest power trading company in the country. In order to

facilitate power trading in the country, National Power Exchange Ltd., a JV

between NTPC, NHPC, PFC and TCS has been formed for operating a PowerExchange.

Ash Business: NTPC has focused on the utilization of ash generated by its power

stations to convert the challenge of ash disposal into an opportunity. Ash is being

used as a raw material input for cement companies and brick manufacturers.

NVVN is engaged in the business of Fly Ash export and sale to domestic

customers. Joint ventures with cement companies are being planned to set up

cement grinding units in the vicinity of NTPC stations.

Power Distribution: NTPC Electric Supply Company Ltd. (NESCL), a wholly

owned subsidiary of NTPC, was set up for distribution of power. NESCL is

actively engaged in Rajiv Gandhi Gramin Vidyutikaran Yojanaprogramme for

rural electrification and also working as 'Advisor cum Consultant' for Ministry of

Power for implementation of Accelerated Power Development and Reforms

Programme(APDRP) launched by Government of India.

Equipment Manufacturing: Enormous growth in power sector necessitates

augmentation of power equipment manufacturing capacity. NTPC has formed JVs

with BHEL and Bharat Forge Ltd. for power plant equipment manufacturing.

NTPC has also acquired stake in Transformers and Electricals Kerela Ltd. (TELK)

for manufacturing and repair of transformers.

Key Financial Ratios of NTPC ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

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Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 2.40 2.80 3.20 3.50 3.60

Operating Profit Per Share (Rs) 8.84 9.00 12.32 13.98 12.79

Net Operating Profit Per Share (Rs) 27.37 31.71 39.58 44.98 50.91

Free Reserves Per Share (Rs) 39.73 43.24 47.38 52.34 56.25

Bonus in Equity Capital -- -- -- -- --

Profitability Ratios

Operating Profit Margin(%) 32.30 28.40 31.13 31.07 25.11

Profit Before Interest And Tax

Margin(%)21.30 18.66 22.84 23.44 18.06

Gross Profit Margin(%) 37.10 32.62 33.28 25.31 19.48

Cash Profit Margin(%) 31.03 27.30 25.25 23.74 21.10

Adjusted Cash Margin(%) 28.82 24.31 24.58 23.74 21.10

Net Profit Margin(%) 23.20 20.20 19.39 18.51 18.11Adjusted Net Profit Margin(%) 20.99 17.20 18.69 18.51 18.11

Return On Capital Employed(%) 13.15 12.26 14.69 15.15 12.27

Return On Net Worth(%) 13.90 12.95 14.13 13.66 13.90

Adjusted Return on Net Worth(%) 12.57 11.02 13.61 13.57 12.18

Return on Assets Excluding

Revaluations8.57 7.84 8.13 7.86 --

Return on Assets Including

Revaluations8.57 7.84 8.13 7.86 --

Return on Long Term Funds(%) 13.15 12.26 14.69 15.15 12.27

Liquidity And Solvency RatiosCurrent Ratio 1.72 2.11 2.42 2.36 2.89

Quick Ratio 1.44 1.84 2.18 2.16 2.59

Debt Equity Ratio 0.42 0.46 0.52 0.50 0.59

Long Term Debt Equity Ratio 0.42 0.46 0.52 0.50 0.59

Debt Coverage Ratios

Interest Cover 16.79 11.59 9.49 10.28 11.91

Total Debt to Owners Fund 0.42 0.46 0.52 0.50 0.59

Financial Charges Coverage Ratio 5.73 5.04 6.29 7.31 7.97

Financial Charges Coverage Ratio PostTax 5.56 4.93 5.35 5.82 7.08

Management Efficiency Ratios

Inventory Turnover Ratio 14.08 12.31 14.10 33.59 28.21

Debtors Turnover Ratio 24.47 23.32 30.78 17.52 12.78

Investments Turnover Ratio 43.42 25.14 30.51 33.59 28.21

Fixed Assets Turnover Ratio 0.74 0.76 0.82 0.70 0.67

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Total Assets Turnover Ratio 0.38 0.40 0.44 0.46 0.45

Asset Turnover Ratio 0.52 0.57 0.65 0.70 0.67

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

Number of Days In Working Capital 98.28 131.98 167.21 171.01 173.56

Profit & Loss Account Ratios

Material Cost Composition 0.07 0.09 0.07 0.07 0.07

Imported Composition of Raw

Materials Consumed-- -- -- -- --

Selling Distribution Cost Composition 0.20 0.15 0.17 0.12 0.13

Expenses as Composition of Total Sales-- -- -- -- --

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 38.69 45.23 44.11 45.53 42.31

Dividend Payout Ratio Cash Profit 28.93 33.45 33.83 35.33 32.83Earning Retention Ratio 57.23 46.91 54.23 54.17 51.75

Cash Earning Retention Ratio 68.85 62.44 65.20 64.49 63.70

AdjustedCash Flow Times 2.42 2.95 2.89 2.86 3.62


Earnings Per Share 7.04 7.06 8.33 8.99 9.95

Book Value 50.67 54.53 58.94 65.81 71.55

Cash Flow of NTPC ------------------- in Rs. Cr. -------------------

Mar '05 Mar '06 Mar '07 Mar '08 M

12 mths 12 mths 12 mths 12 mths 1

Net Profit Before Tax 6068.00 6271.20 8896.50 10529.40 94

Net Cash From Operating Activities 5047.30 6206.40 8065.30 10171.10 96

Net Cash (used in)/from

Investing Activities-6417.90 -2713.60 -3145.80 -6203.80 -7

Net Cash (used in)/from Financing

Activities 813.80 -1099.70 -76.30 -2348.70 -8

Net (decrease)/increase In Cash andCash Equivalents

-556.80 2393.10 4843.20 1618.60 1

Opening Cash & Cash Equivalents 6635.10 6078.30 8471.40 13314.60 1

Closing Cash & Cash Equivalents 6078.30 8471.40 13314.60 14933.20 1

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Source : Religare Technova


12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 8,245.50 8,245.50 8,245.50 8,245.50 8,245.50

Equity Share Capital 8,245.50 8,245.50 8,245.50 8,245.50 8,245.50

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 33,530.80 36,713.20 40,351.30 46,021.90 50,749.4

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 41,776.30 44,958.70 48,596.80 54,267.40 58,994.9

Secured Loans 4,778.10 6,173.50 7,479.60 7,314.70 8,969.60

Unsecured Loans 12,647.10 14,464.60 17,661.50 19,875.90 25,598.2

Total Debt 17,425.20 20,638.10 25,141.10 27,190.60 34,567.8

Total Liabilities 59,201.50 65,596.80 73,737.90 81,458.00 93,562.7



Application Of Funds

Gross Block 42,996.10 45,917.60 50,604.20 53,368.00 62,353.0Less: Accum. Depreciation 20,791.40 22,950.10 25,079.20 27,274.30 29,415.3

Net Block 22,204.70 22,967.50 25,525.00 26,093.70 32,937.7

Capital Work in Progress 10,038.60 13,756.00 16,962.30 22,478.30 26,404.9

Investments 20,797.70 19,289.10 16,094.30 15,267.20 13,983.5

Inventories 1,777.70 2,340.50 2,510.20 2,675.70 3,243.40

Sundry Debtors 1,374.70 867.80 1,252.30 2,982.70 3,584.20

Cash and Bank Balance 367.30 176.80 750.10 473.00 271.80

Total Current Assets 3,519.70 3,385.10 4,512.60 6,131.40 7,099.40

Loans and Advances 5,491.10 6,555.10 8,781.70 9,936.20 7,826.10Fixed Deposits 5,711.00 8,294.60 12,564.50 14,460.20 15,999.8

Total CA, Loans & Advances 14,721.80 18,234.80 25,858.80 30,527.80 30,925.3

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 5,884.60 4,910.30 5,422.20 5,548.40 7,439.20

Provisions 2,676.70 3,740.30 5,280.30 7,360.60 3,249.50

Total CL & Provisions 8,561.30 8,650.60 10,702.50 12,909.00 10,688.7

23

Balance Sheet of NTPC ------------------- in Rs. Cr. -------------------


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Net Current Assets 6,160.50 9,584.20 15,156.30 17,618.80 20,236.60

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 59,201.50 65,596.80 73,737.90 81,458.00 93,562.7

Contingent Liabilities 16,680.00 16,429.80 25,218.80 29,361.80 66,083.2

Book Value (Rs) 50.67 54.53 58.94 65.81 71.55



IncomeSales Turnover 22,565.00 26,318.60 32,817.30 37,302.40 42,196.8

Excise Duty 0.00 175.70 185.60 211.40 221.60

Net Sales 22,565.00 26,142.90 32,631.70 37,091.00 41,975.20

Other Income 2,438.60 2,897.90 2,875.60 3,119.70 3,012.80

Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 25,003.60 29,040.80 35,507.30 40,210.70 44,988.0

Expenditure

Raw Materials 17.90 25.00 23.70 26.80 31.00

Power & Fuel Cost 13,804.10 16,497.10 19,947.60 22,160.70 27,292.3Employee Cost 997.10 1,137.50 1,362.60 2,229.30 2,897.60

Other Manufacturing Expenses 586.70 705.10 842.90 920.00 940.00

Selling and Admin Expenses -284.90 353.20 410.80 389.80 473.20


Preoperative Exp Capitalised -74.80 -256.40 -418.40 -544.70 -637.40

Total Expenses 15,251.90 18,708.70 22,461.60 25,550.10 31,391.6



Operating Profit 7,313.10 7,434.20 10,170.10 11,540.90 10,583.6

PBDIT 9,751.70 10,332.10 13,045.70 14,660.60 13,596.4

Interest 1,701.60 2,004.60 2,055.70 1,982.20 1,737.00

PBDT 8,050.10 8,327.50 10,990.00 12,678.40 11,859.4

Depreciation 1,958.40 2,047.70 2,075.40 2,138.50 2,364.50

Other Written Off 0.40 1.30 9.90 3.10 3.60

Profit Before Tax 6,091.30 6,278.50 8,904.70 10,536.80 9,491.30

24

Profit & Loss account of NTPC ------------------- in Rs. Cr. -------------------


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Extra-ordinary items 574.70 633.70 134.20 -114.00 1,305.20

PBT (Post Extra-ord Items) 6,666.00 6,912.20 9,038.90 10,422.80 10,796.5

Tax 834.80 1,082.40 2,163.70 2,994.20 2,554.70

Reported Net Profit 5,807.00 5,820.20 6,864.70 7,414.80 8,201.30

Total Value Addition 15,234.00 18,683.70 22,437.90 25,523.30 31,360.6

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,979.00 2,308.70 2,638.50 2,885.90 2,968.30

Corporate Dividend Tax 268.00 323.80 389.60 490.50 501.70

Per share data (annualised)

Shares in issue (lakhs) 82,454.64 82,454.64 82,454.64 82,454.64 82,454.6

Earning Per Share (Rs) 7.04 7.06 8.33 8.99 9.95

Equity Dividend (%) 24.00 28.00 32.00 35.00 36.00

Book Value (Rs) 50.67 54.53 58.94 65.81 71.55

2. Tata Power

Recognised as Indias largest private sector power utility, with a reputation for

trustworthiness, built up over nearly nine decades, Tata Power surges ahead into yetanother year with plans of sustained growth, greater value to consumer and reliable power

supply.

Led by a powerful vision, Tata Power pioneered the generation of electricity in India. It

has now successfully served the Mumbai consumers for over ninety years and has spreadits footprints across the nation. Today, it is the countrys largest private player in the

sector. Apart from Mumbai and Delhi, the company has generation capacities in Jojobera,

Jharkhand and Karnataka.

Tata Power has an installed power generation capacity of above 2900 Mega Watts, withthe Mumbai power business, which has a unique mix of Thermal and Hydro Power,

generated at the Thermal Power Station, Trombay, and the Hydro Electric Power Stations

at Bhira, Bhivpuri and Khopoli, accounting for 1797 MW. Its diverse generation capabilityfacilitates the company in producing low cost energy, thereby giving its consumers a

greater value for money.

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made inroads into the tiny hamlets and tribal regions of our hydro catchment areas and it isour endeavour to light up these dark and narrow streets to new dawns.


Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00

Dividend Per Share 7.50 8.50 9.50 10.50 11.50

Operating Profit Per Share (Rs) 45.70 42.48 35.46 41.67 50.79

Net Operating Profit Per Share (Rs) 198.02 230.08 248.54 267.77 327.74

Free Reserves Per Share (Rs) 172.76 192.52 215.63 278.20 308.95

Bonus in Equity Capital 0.57 0.57 0.57 0.51 0.51Profitability Ratios

Operating Profit Margin(%) 23.08 18.46 14.26 15.56 15.49

Profit Before Interest And TaxMargin(%)

13.41 11.90 7.79 10.38 10.63

Gross Profit Margin(%) 21.36 18.25 16.27 10.64 10.96

Cash Profit Margin(%) 22.42 18.81 18.81 12.65 10.88

Adjusted Cash Margin(%) 17.17 15.40 14.85 12.65 10.88

Net Profit Margin(%) 13.57 12.92 13.26 14.35 12.32

Adjusted Net Profit Margin(%) 7.87 9.30 9.11 14.35 12.32

Return On Capital Employed(%) 8.37 8.69 7.61 6.96 7.32

Return On Net Worth(%) 10.82 11.07 11.63 10.88 10.66

Adjusted Return on Net Worth(%) 6.30 7.99 7.99 5.90 5.56

Return on Assets Excluding

Revaluations5.89 6.31 6.06 6.65 5.70

Return on Assets Including

Revaluations5.89 6.31 6.06 6.65 5.70

Return on Long Term Funds(%) 8.40 8.72 7.62 7.18 7.67

Liquidity And Solvency Ratios

Current Ratio 1.86 2.18 2.22 1.78 1.64

Quick Ratio 1.64 1.85 2.00 1.75 1.77

Debt Equity Ratio 0.57 0.51 0.61 0.39 0.61

Long Term Debt Equity Ratio 0.56 0.50 0.60 0.34 0.53

Debt Coverage Ratios

Interest Cover 3.73 4.86 4.03 4.63 3.33

Total Debt to Owners Fund 0.57 0.51 0.61 0.39 0.61

27

Key Financial Ratios of Tata Power

Company

------------------- in Rs. Cr. -------------------


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Financial Charges Coverage Ratio 5.83 6.63 5.55 6.23 4.15

Financial Charges Coverage Ratio Post

Tax6.17 6.89 6.34 7.78 4.86

Management Efficiency Ratios

Inventory Turnover Ratio 13.68 10.68 13.25 18.70 15.49

Debtors Turnover Ratio 5.55 5.20 3.88 4.09 4.83

Investments Turnover Ratio 1,012.70 498.76 6,072.41 18.70 15.49

Fixed Assets Turnover Ratio 1.17 1.41 1.40 0.91 0.81

Total Assets Turnover Ratio 0.49 0.55 0.51 0.53 0.52

Asset Turnover Ratio 0.72 0.77 0.79 0.91 0.81

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- -- --

Number of Days In Working Capital 112.46 131.89 166.79 122.89 123.79

Profit & Loss Account RatiosMaterial Cost Composition 62.94 70.43 70.10 72.76 73.86

Imported Composition of Raw

Materials Consumed-- -- -- -- --

Selling Distribution Cost Composition 1.56 1.19 5.19 0.59 0.67

Expenses as Composition of Total Sales1.88 1.82 2.12 0.31 4.47

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 30.81 31.41 31.60 30.84 31.20

Dividend Payout Ratio Cash Profit 18.28 21.34 22.05 23.02 22.90

Earning Retention Ratio 46.91 56.37 54.01 43.09 40.16

Cash Earning Retention Ratio 75.66 73.65 71.79 65.02 64.68

AdjustedCash Flow Times 4.16 3.84 4.71 4.02 6.44


Earnings Per Share 27.86 30.85 35.21 39.42 41.65

Book Value 257.44 278.62 302.73 362.11 390.36

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Cash Flow of Tata Power Company ------------------- in Rs. Cr. -------------------



Net Profit Before Tax 758.79 747.45 586.01 970.12 1116.68

Net Cash From Operating Activities 444.09 296.86 436.70 1126.25 648.61

Net Cash (used in)/from

Investing Activities-308.08 144.46 -946.56 -2541.14 -2220.52

Net Cash (used in)/from Financing

Activities798.58 -453.76 538.52 440.88 1588.71

Net (decrease)/increase In Cash andCash Equivalents

934.59 -12.44 28.66 -974.01 16.80

Opening Cash & Cash Equivalents 51.90 986.49 974.05 1002.71 28.70

Closing Cash & Cash Equivalents 986.49 974.05 1002.71 28.70 45.50

Profit & Loss account of Tata Power

Company

------------------- in Rs. Cr. -------------------



Income

Sales Turnover 3,919.14 4,553.71 4,918.65 5,909.78 7,257.65

Excise Duty 0.29 0.48 0.12 0.18 0.60

Net Sales 3,918.85 4,553.23 4,918.53 5,909.60 7,257.05

Other Income 408.47 345.67 375.77 517.73 651.62

Stock Adjustments -8.08 8.95 -8.32 -0.74 -0.07

Total Income 4,319.24 4,907.85 5,285.98 6,426.59 7,908.60Expenditure

Raw Materials 2,466.75 3,207.18 3,448.22 4,299.95 5,360.08

Power & Fuel Cost 0.00 0.00 0.00 0.00 0.00

Employee Cost 155.40 173.68 196.35 249.69 291.90

Other Manufacturing Expenses 171.66 167.45 187.92 241.47 246.32

Selling and Admin Expenses 124.65 152.48 323.03 130.09 129.72

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Preoperative Exp Capitalised -20.30 -5.38 -5.36 -2.22 -3.15

Total Expenses 3,006.28 3,721.54 4,208.47 4,975.17 6,127.98



Operating Profit 904.49 840.64 701.74 933.69 1,129.00

PBDIT 1,312.96 1,186.31 1,077.51 1,451.42 1,780.62

Interest 179.75 152.62 187.11 171.82 325.73

PBDT 1,133.21 1,033.69 890.40 1,279.60 1,454.89

Depreciation 359.62 278.34 291.92 290.50 328.85

Other Written Off 18.20 9.82 9.82 5.01 4.88

Profit Before Tax 755.39 745.53 588.66 984.09 1,121.16

Extra-ordinary items -33.92 -4.41 178.17 32.13 16.43

PBT (Post Extra-ord Items) 721.47 741.12 766.83 1,016.22 1,137.59

Tax 170.11 130.68 70.03 132.35 210.91

Reported Net Profit 551.36 610.54 696.80 869.90 922.20

Total Value Addition 539.53 514.36 760.25 675.22 767.90

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 148.60 168.41 188.22 241.38 255.98

Corporate Dividend Tax 21.30 23.42 31.99 26.95 31.75

Per share data (annualised)

Shares in issue (lakhs) 1,978.98 1,978.98 1,978.98 2,207.00 2,214.24

Earning Per Share (Rs) 27.86 30.85 35.21 39.42 41.65

Equity Dividend (%) 75.00 85.00 95.00 105.00 115.00Book Value (Rs) 257.44 278.62 302.73 362.11 390.36

Source : Religare Technova

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Balance Sheet of Tata Power Company ------------------- in Rs. Cr. -------------------



Sources Of Funds

Total Share Capital 197.92 197.92 197.92 220.72 221.44

Equity Share Capital 197.92 197.92 197.92 220.72 221.44

Share Application Money 0.00 0.00 0.00 60.99 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 4,896.74 5,315.91 5,793.03 7,771.12 8,422.06

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 5,094.66 5,513.83 5,990.95 8,052.83 8,643.50

Secured Loans 1,059.07 946.00 1,354.30 2,331.09 3,931.71

Unsecured Loans 1,842.75 1,850.81 2,321.22 752.26 1,315.35

Total Debt 2,901.82 2,796.81 3,675.52 3,083.35 5,247.06

Total Liabilities 7,996.48 8,310.64 9,666.47 11,136.18 13,890.56



Application Of Funds

Gross Block 5,465.84 5,924.74 6,229.71 6,481.99 8,985.86

Less: Accum. Depreciation 2,657.37 2,921.72 3,199.40 3,476.50 3,795.32

Net Block 2,808.47 3,003.02 3,030.31 3,005.49 5,190.54

Capital Work in Progress 438.19 211.81 781.05 1,681.74 761.16

Investments 3,502.92 3,412.17 3,570.15 4,430.00 5,443.47

Inventories 297.03 442.26 396.42 473.61 644.14

Sundry Debtors 693.21 1,058.23 1,478.22 1,414.52 1,587.97

Cash and Bank Balance 39.42 25.57 956.29 28.70 45.50

Total Current Assets 1,029.66 1,526.06 2,830.93 1,916.83 2,277.61

Loans and Advances 618.04 544.68 862.68 2,039.90 2,493.82

Fixed Deposits 940.18 964.98 411.43 0.00 0.00Total CA, Loans & Advances 2,587.88 3,035.72 4,105.04 3,956.73 4,771.43

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 770.69 778.34 1,194.67 1,354.03 1,624.05

Provisions 593.00 589.20 631.58 585.44 651.99

Total CL & Provisions 1,363.69 1,367.54 1,826.25 1,939.47 2,276.04

Net Current Assets 1,224.19 1,668.18 2,278.79 2,017.26 2,495.39

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Total Assets 7,996.48 8,310.64 9,666.47 11,136.18 13,890.56

Contingent Liabilities 434.04 313.09 1,314.86 1,231.68 994.99

Book Value (Rs) 257.44 278.62 302.73 362.11 390.36

3. Reliance Infrastructure Ltd

Reliance Infrastructure Ltd is not only Indias largest private sector enterprise in powerutility but also the largest private sector player in many other infrastructure sectors of

India. In the power sector we are involved in generation, transmission, distribution and

trading of electricity and constructing power plants as EPC partners. In the infrastructurespace the company is focused on roads, Urban infrastructure which includes MRTS,

Sealink and Airports, Specialty Real Estate which includes business districts, trade towers,

convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as well as freetrade zones.

Power Utility

Reliance Infrastructure distributes more than 28 billion units of electricity to cover 25

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million consumers across different parts of the country including Mumbai and Delhi in anarea that spans over 1, 24,300 sq. kms. We also generate 941 MW of electricity, from our

power stations located in Maharastra, Andhra Pradesh, Kerala, Karnataka and Goa.

We are also emerging as one of the leading players in India in the Engineering,Procurement and Construction (EPC) segment of the power sector with an order book of

Rs 8,300 crore, having executed projects worth Rs 10000 Crores in the past 4 years.

We are also executing the first 100% private sector power transmission project for western

grid with an investment worth Rs 2,250 crores.

We are also ranked among top 5 players in power trading in the country with 1,050 MUstraded in FY2007

All this makes us a fully integrated player in the power sector.

RELIANCE INFRA:

Ratios

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Per share ratios

Adjusted EPS (Rs) 31.11 24.79 25.37 31.04 17.29

Adjusted cash EPS (Rs) 41.94 34.26 35.88 50.72 43.12

Reported EPS (Rs) 50.38 46.04 35.07 30.63 28.04

Reported cash EPS (Rs) 61.21 55.50 45.57 50.31 53.86

Dividend per share 7.00 6.30 5.30 5.00 4.70

Operating profit per share (Rs) 19.22 22.82 21.75 35.99 36.24

Book value (excl rev res) per share (Rs) 4.55 435.51 378.13 331.24 270.50

Book value (incl rev res) per share (Rs.) 4.66 462.84 408.67 366.66 311.03

Net operating income per share (Rs) 426.42 268.76 251.72 186.70 223.99

Free reserves per share (Rs) 396.55 371.20 339.74 292.31 227.62

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Profitability ratios

Operating margin (%) 4.50 8.49 8.64 19.27 16.18

Gross profit margin (%) 1.96 4.96 4.46 8.73 4.65

Net profit margin (%) 10.73 15.34 12.43 14.39 11.64Adjusted cash margin (%) 8.93 11.41 12.71 23.83 17.90

Adjusted return on net worth (%) 6.67 5.69 6.71 9.37 6.39

Reported return on net worth (%) 10.81 10.57 9.27 9.24 10.36

Return on long term funds (%) 9.66 9.67 9.45 9.04 5.85

Leverage ratios

Long term debt / Equity 0.14 0.06 0.16 0.41 0.71

Total debt/equity 0.69 0.48 0.67 0.60 0.74

Owners fund as % of total source 58.96 67.19 59.59 62.23 57.31

Fixed assets turnover ratio 1.40 0.99 0.97 0.72 0.80

Liquidity ratios

Current ratio 1.55 2.47 3.93 4.25 3.94

Current ratio (inc. st loans) 0.74 1.06 1.51 2.09 3.58

Quick ratio 1.45 2.37 3.82 4.07 3.75

Inventory turnover ratio 55.96 40.26 32.87 19.60 31.27

Payout ratios

Dividend payout ratio (net profit) 16.19 15.93 17.68 18.37 19.01

Dividend payout ratio (cash profit) 13.33 13.21 13.60 11.18 9.89Earning retention ratio 73.77 70.41 75.57 81.88 69.17

Cash earnings retention ratio 80.55 78.59 82.72 88.91 87.64

Coverage ratios

Adjusted cash flow time total debt 7.73 6.21 7.14 3.96 4.67

Financial charges coverage ratio 4.25 4.13 4.76 6.88 7.30

Fin. charges cov.ratio (post tax) 5.19 5.23 5.16 6.57 8.41

Component ratios

Material cost component (% earnings) 44.32 39.50 26.96 27.67 24.57Selling cost Component 1.79 2.36 2.32 0.21 0.23

Exports as percent of total sales 0.96 0.01 - - 0.02

Import comp. in raw mat. consumed - - - - -

Long term assets / total Assets 0.63 0.53 0.27 0.23 0.24

Bonus component in equity capital (%) 3.57 3.43 3.53 3.80 4.35

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Cash flow


Profit before tax 1,193.43 1,151.70 872.37 781.47 569.64

Net cashflow-operating activity 892.64 246.97 1,118.65 380.87 420.89

Net cash used in investing activity -992.67 -2,611.77 -6,824.35 -2,103.60 1,985.68

Netcash used in fin. activity 263.16 276.53 2,228.72 1,330.26 2,778.64

Net inc/dec in cash and equivlnt 163.13 -2,088.27 -3,476.98 -393.37 5,185.21Cash and equivalnt begin of year 87.88 2,175.92 5,652.90 6,045.37 860.16

Cash and equivalnt end of year 251.01 87.65 2,175.92 5,652.00 6,045.37

Profit loss account


Income

Operating income 9,640.16 6,331.50 5,752.47 3,963.97 4,156.73

Expenses

Material consumed 4,272.53 2,501.51 1,601.86 1,031.93 1,030.04

Manufacturing expenses 3,308.95 2,403.59 2,919.43 1,710.82 2,036.25

Personnel expenses 536.62 367.95 290.35 212.80 201.68

Selling expenses 173.26 149.89 133.48 8.35 9.84

Adminstrative expenses 914.40 371.00 310.24 235.88 206.32

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Expenses capitalised - - - - -

Cost of sales 9,205.76 5,793.94 5,255.36 3,199.78 3,484.13

Operating profit 434.40 537.56 497.11 764.19 672.60

Other recurring income 971.07 738.58 695.22 555.24 311.84

Adjusted PBDIT 1,405.47 1,276.14 1,192.33 1,319.43 984.44Financial expenses 330.50 308.76 250.32 191.88 134.82

Depreciation 244.88 222.94 240.06 417.83 479.26

Other write offs - - - - -

Adjusted PBT 830.09 744.44 701.95 709.72 370.36

Tax charges 126.89 160.37 122.07 50.58 49.50

Adjusted PAT 703.20 584.07 579.88 659.14 320.86

Non recurring items 310.12 258.77 103.05 -14.22 61.00

Other non cash adjustments 127.41 241.79 157.92 -65.14 5.46

Reported net profit 1,140.73 1,084.63 840.85 579.78 387.32

Earnigs before appropriation 1,915.59 1,443.91 1,116.78 780.09 509.87Equity dividend 157.69 147.73 121.12 104.62 87.21

Preference dividend - - - - -

Dividend tax 26.80 25.11 20.58 14.87 11.74

Retained earnings 1,731.10 1,271.07 975.08 660.60 410.92

Balance sheet


Sources of funds

Owner's fund

Equity share capital 226.07 235.62 228.57 212.36 185.61

Share application money 783.49 783.49 - 88.24 568.01

Preference share capital - - - - -

Reserves & surplus 10,308.14 10,024.16 8,412.74 6,820.51 4,834.10

Loan funds

Secured loans 1,848.33 1,125.00 1,435.00 1,919.81 785.00

Unsecured loans 5,483.85 3,884.04 4,423.32 2,347.12 2,953.67

Total 18,649.88 16,052.31 14,499.63 11,388.04 9,326.39

Uses of funds

Fixed assets

Gross block 6,922.69 6,396.14 5,898.36 5,470.61 5,172.97

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Less : revaluation reserve 589.74 643.69 697.93 752.17 752.17

Less : accumulated depreciation 3,582.52 3,328.56 3,082.49 2,814.55 2,452.85

Net block 2,750.43 2,423.89 2,117.94 1,903.89 1,967.95

Capital work-in-progress 564.42 568.92 288.49 217.65 192.19

Investments 12,147.10 7,664.36 2,511.88 1,192.74 696.22

Net current assets

Current assets, loans & advances 8,972.41 9,073.85 12,849.04 10,559.79 8,668.18

Less : current liabilities & provisions 5,784.48 3,678.71 3,267.72 2,486.03 2,198.15

Total net current assets 3,187.93 5,395.14 9,581.32 8,073.76 6,470.03

Miscellaneous expenses not written - - - - -

Total 18,649.88 16,052.31 14,499.63 11,388.04 9,326.39

Notes:

Book value of unquoted investments 5,130.99 4,336.92 942.53 189.31 605.63Market value of quoted investments 16,398.06 33,986.71 1,601.17 1,007.47 97.78

Contingent liabilities 3,934.79 3,237.54 1,992.48 658.86 582.65

Number of equity sharesoutstanding(Lacs)

2260.70 2355.79 2285.30 2123.20 1855.73

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FINANCIAL ANALYSIS

1. Return on investment:

This is most important test of profitability of a business. Its measures the overall

profitability. It is ascertained by comparing profit earned and capital employed to earn.

Formula: ROI = PBIT / Capital employed

Return on Investment Ratio

12.

26 1

4.

69

15.

15

12.

27

8.

69

7.

61

6.

96

7.

32

7.

91

6.

56

6.

56

6.

22

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009

Years

ratios

NTPC

Tata Power

Reliance Infra

Interpretation:

NTPC: Under this company above Ratio increased from 12.26 in 2006 to 15.15 in 2008and it has decreased from 15.15 in 2008 to 12.27 in 2009.

Tata Power: Under this company above Ratio decreased from 8.69 in 2006 to 6.96 in 2008

and if increased from 6.96 in 2008 to 7.32 in 2009.

Reliance Infra: Under this company above Ratio has decreased from 7.91 in 2006 to 6.22in 2009.

38

Companies 2006 2007 2008 2009

NTPC 12.26 14.69 15.15 12.27

Tata Power 8.69 7.61 6.96 7.32

Reliance Infra 7.91 6.56 6.56 6.22


39/45

The reason for the fluctuations in the Return on investment is the efficiencies of

management of different companies.

2. Debt-Equity Ratio:

This ratio establishes a relationship between total long-tern Debts and share holders

funds.

Formula: Debt-Equity Ratio = Total long term debts / snare holders funds

Debt-Equity Ratio

0.

4 0.

5

0.

50.

5

0.

51 0

.61

0.

39

0.

61

0.

61

0.

6

0.

4

0.

7

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2006 2007 2008 2009

Years

ratio

NTPC

Tata Power

Reliance Infra

Interpretation:

NTPC: This ratio has increased from 0.46 in 2006 to 0.59 in 2009, but it has decreased in2008 i.e. 0.50.

Tata Power: This ratio has increased from 0.51 in 2006 to 0.61 in 2009, but it has

decreased in 2008 i.e. 0.39.

Reliance Infra: This ratio has increased from 0.61 in 2006 to 0.70 in 2009, but it decreasedin 2008 i.e. 0.49.

39

Companies 2006 2007 2008 2009

NTPC 0.46 0.52 0.50 0.59

Tata Power 0.51 0.61 0.39 0.61

Reliance Infra 0.61 0.68 0.49 0.70


40/45

The reason for fluctuations in the debt equity ratio is depending upon risk and returns

taken by various companies.

3. Current Ratio:

This ratio establishes a relationship between current assets and current liabilities.

Formula: Current Ratio = Current Assets / Current Liabilties

Current Ratio

2.

11

2.

4

2.

3

2.

8

2.

1

2.

2

1.

7

1.

62.

09

1.

51

1.

0

0.

75

0

0.5

1

1.5

2

2.5

3

3.5

2006 2007 2008 2009

years

ratio

NTPC

Tata Power

Reliance Infra

Interpretation:

NTPC: This ratio has increased from 2.11 in 2006 to 2.89 in 2009, but it has decreased in2008 i.e. 2.36.

Tata Power: This ratio has increased in both 2006 & 2007, but decreased in 2008 & 2009

i.e. 1.78, 1.64 respectively.

Reliance Infra: This ratio has continuously decreased from 2.09 in 2006 to 0.75 in 2009.

The norm of the companies indicates these ratios is 2:1 and above some of companies

maintain this ratio and some of the companies did not maintain.

4. Net Profit Ratio:

40

Companies 2006 2007 2008 2009

NTPC 2.11 2.42 2.36 2.89

Tata Power 2.18 2.22 1.78 1.64

Reliance Infra 2.09 1.51 1.06 0.75


41/45

The ratio indicates that margin of sales which s available to share holders in the farm of

dividend its shows the efficiency and profitability to a limited extent.

Formula; Net Profit Ratio = Net Profit after Tax / Sales

Net Profit Ratio

2

0.

19.

3

18

.5

18.

1

12.

9

13.

2

14.

3

12.

314.

3

12.

4 15.

3

10.

7

0

5

10

15

20

25

2006 2007 2008 2009

years

ratio

NTPC

Tata Power

Reliance Infra

Interpretation:

NTPC: This ratio has continuously decreased from 20.20 in 2006 to 18.11 in 2009.

Tata Power: This ratio has continuously increased from 12.92 in 2006 to 14.35 in 2008,

but it decreased in 2009 i.e. 12.32.

Reliance Infra: This ratio has decreased from 14.39 in 2006 to 12.43 in 2007, it has

increased from 12.43 in 2007 to 15.34 in 2008 and again decreased in 2009 i.e. 10.73.

The reason for fluctuations in the Net profit ratio is management expenses and resourceutilization.

5. Operating Profit Ratio:

41

Companies 2006 2007 2008 2009

NTPC 20.20 19.39 18.51 18.11

Tata Power 12.92 13.26 14.35 12.32

Reliance Infra 14.39 12.43 15.34 10.73


42/45

This Ratio indicates that margin of sales. It is a measure of operating efficiency whichindicates net margin.

Formula: Operating Profit Ratio = Operating Profit / Net Sales

Operating profit ratio

28.

31.

1

31.

0

25.

11

18.

4

14.

2

15.

5

15.

419

.2

8.

6

8.

4

4.

5

0

5

10

15

20

25

30

35

2006 2007 2008 2009

years

ratios(%

NTPC

Tata Power

Reliance Infra

Interpretation:

NTPC: This ratio has increased from 28.4 in 2006 to 31.13 in 2007, it decreased from

31.13 in 2007 to 31.07 in 2008 and again decreased in 2009 i.e. 25.11.

Tata Power: This ratio has decreased from 18.46 in 2006 to 14.26 in 2007, it has increased

from 14.26 in 2007 to 15.56 in 2008 and again decreased in 2009 i.e. 15.49.

Reliance Infra: This ratio has continuously decreased from 19.27 in 2006 to 4.5 in 2009.

The reason for fluctuations in the operating profit ratio is operating expenses incurred bymanagement of above companies.

42

Companies 2006 2007 2008 2009

NTPC 28.4 31.13 31.07 25.11

Tata Power 18.46 14.26 15.56 15.49

Reliance Infra 19.27 8.64 8.49 4.50


43/45

FUTURE OUTLOOK

Future Trends

43


44/45

According to experts the private sector would play a greater role in power

generation and foreign investments would increase considerable in his sector.

The government of Indias Hydrocarbon vision 2025 gives in detail the guidelines

for the policies in India for the next 25 years to attract investment in exploration,

production, refining and distribution of petroleum products.

Solar power projects worth Rs 50,000 crore in plan pipeline

The solar show has not started just yet on a big scale, but the investments now trickling in

look like precursor to a deluge.

As the world is moblising opinions and planning laws to douse the explosion of

greenhouse gases, and looking at ways and means to rescue itself from the traps of the

dirtyenergy like crude and coal sourced from hell', there is a renewed thrust on energyfrom heaven' such as solar and wind.

While this an opportunity for India to shift its focus from the conventional sources of

energy, Rajasthan can become a potential launch-pad for milestone ventures in these earlydays of green-energy revolution.

Harnessing solar energy requires vast tracts of land along with sufficient radiation. India's biggest state has both -- large swathes of desert and abundant sunshine with solar

insulation being one of the best in the world, says Naresh Pal Gangwar, chairman &

managing director of Rajasthan Renewable Energy Corporation (RREC).

Although there is not much to brag right now in terms of electricity generated from solar

sources, the pipeline of proposals has never been so robust.

The RREC has received 90 proposals worth 3,000 MW capacity to set up solar powerventures as of now. If all proposals are converted into projects, then the state would be

receiving investments up to Rs 51,000 crore. Projects with a capacity of 66 MW by 11companies, including Reliance Industries, Jindal Power, Par Solar, GVK Power and

Infrastructure Ltd, Moser Baer Photovoltaic Ltd have been approved.

To attract investors, RREC has been active in identifying suitable areas and has also built

infrastructure for electricity evacuation.

"We have prepared a landbankfor solar projects. The size of the areas starts from 5 MW

onwards. This infrastructure is complemented by an extensive evacuation system, which is

being used for wind energy," adds Gangwar.

However, the commercial viability of this sector still looks some years away. The hiatus

between solar and conventional power in terms of profitability is yet to shrink. Subsidies

on fossil fuels add to the inferior commercial feasibility of solar power.

The cost per megawatt power in case of solar is at Rs 17 crore, while that of thermal and

hydel is at around Rs 4-5 crore.

44
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45/45

But equations are fast changing. Technological advances in recent times, coupled with

subsidies to the manufacturers of solar panels, hold out hopes that prices are going to be

on the decline. This year, excess supply of solar panels owing to mushrooming ofmanufacturers has reduced prices by 45%.

Further breakthrough in cheaper thin-film technology, replacing the expensive crystallinepanels will bring down the cost of solar panels. In a place like Rajasthan, where there is

little constraint for space, thin-films will be a natural choice instead of solar thermal which

requires gallons of water. The popularity of thin-films in recent times can be gauged fromthe fact that itsmarket share has been rising from 10% levels in 2004 to almost half now.

Thin-films are solar cells made with thin coatings of silicon and other materials in place of

expensive slices of crystal.

Rajasthan receives plenty of sunshine with rich intensity and solar power is shovel' ready,

meaning, once a project is sanctioned, it takes a few weeks or a couple of months (in caseof high capacities) to be on stream. Also, in due course, the per-unit cost of power comes

down as the input cost drastically declines compared to other sources of generation like

thermal and hydel.

To encourage and facilitate investments in the sector, the state government is currently

drafting a new renewable energy policy which is expected to be announced early next

year.
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