NATIONAL THERMAL POWERCORPORATION

-FINANCIAL STATEMENTS ANALYSIS

COMPANY IN BRIEF

Type: Government Owned Public Enterprise

Founded: 1975

Current Share Price: Rs. 173.75 (BSE)

Industry : Power Generation/Distribution

Employees : 25,944 ( 2010 )

CURRENT SHARE HOLDING PATTERN

CASH FLOW STATEMENTNTPC

March 2010 March 2009 March 2008 March 2007

Net Profit before tax

108076 94678 105294 88965

Net cash from Operating Activities

105942 96881 97860 80653

Net cash from Investing Activities

-104977 -75004 -62038 -31458

Net cash from Financing Activities

-19086 -8493 -23487 -763

Net (decrease)/ Increase in Cash Equivalents

-18121 13384 16186 48432

Opening Cash 162716 149332 133146 84714

Closing Cash 144595 162716 149332 133146

Note: All the figures are in Rs. millions

INFERENCE ON OPERATING ACTIVITIES

Increase in Operating Activities-9.35%

Increase is Guarantee fee by 81.66%.

Significant Increase in Inventories.

Increase in Loans/advances.

INFERENCE ON INVESTING ACTIVITIES

Increase in Investing Activities-39%

Purchase of Investments increases by

RS.105,208 Millions

Significant Investments in Joint

ventures/ Subsidiaries

81.38%

Increase in Dividends Received

25.3%

Decrease in Disposal of Fixed

Assets 8 3 %

INFERENCE ON FINANCING ACTIVITIES

Increase in Financing Activities-124%

Increase in Dividends paid by

5.5%

Increased Repayments of

Long term Borrowing 17.12%

Increase in Interest paid 31.77%

Decrease in proceeds from Long

term Borrowings 05%

RATIO ANALYSIS

• Current Ratio• Debtors Turnover Ratio• D/E (Debt/Equity) Ratio• Collection Period (Debtors)• Profit Margin• Expense Ratio (Financial)

GROWTH OF THE COMPANY

2009-2010 2008-2009

Current Ratio 1.34 0.95

Debtors Turn around Ratio 9.06 Times 12.78 Times

Collection Period (Debtors) 40.27 Days 28.55 Days

D/E Ratio 0.59 0.59

Gross Profit Margin 23.46% 22.61%

Financial Expense Ratio 1.91 1.95

- A Deep Insight in to Cash Flow Statement

MAJOR COMPETITORSTATA Power

Reliance Power

Adani Power

Power Grid Corporation

NHPC

C U R R E N T R AT I O

Current Ratio =Current Assets

Current Liabilities

NTPC Adani Power Reliance Power

Current Ratio 1.34 2.063 3.017

D E BTO R S T U R N O V E R R AT I O

Debtors turnover ratio =Net credit sales

Average debtors

NTPC Adani Power Reliance Power

Debtors turnover Ratio 9.06 Times 3.3933 Times 0.719 Times

D E B T O R S C O L L E C T I O N P E R I O D

NTPC Adani Power Reliance Power

Debtors Collection Period 40.27Days 107.56 Days 507.46 Days

Debtors collection period

=12 Months

Debtors turnover ratio

D / E R AT I O

NTPC Adani Power Reliance Power

D/E Ratio 0.59 1.83 0.105

Debt-equity ratio =Total Debt

Shareholders’ equity

P R O F I T M A R G I N R AT I O

NTPC Adani Power Reliance Power

PROFIT MARGIN Ratio 23.10% 62.88 % 106.62%

Gross profit margin =Gross Profit

Sales X 100

E X P E N S E R AT I O

NTPC Adani Power Reliance Power

Expense (Financial) Ratio 1.91 3.89 18.35

C o n c l u s i o n

NTPC enjoys reasonably good amount of financial flexibility.

Company is in the high growing stage – Expansion Stage.

Investor’s point of view- Dividend paid every year remains almost constant i.e. 5.5%

Net Profit margin highest among its competitors Rs. 9102.59 Cr…….

THANK-YOUCREDITS

AMIT KANABARNISARG TRIVEDI

ANIL KAMANIANIL BEHAL