NTPC 2023-24 Annual Report Analysis

Wed, 7 Aug

NTPC has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

NTPC Income Statement Analysis

• Operating income during the year fell 8.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.0% in FY24 as against 28.1% in FY23.
• Depreciation charges decreased by 5.7% and finance costs decreased by 3.4% YoY, respectively.
• Other income grew by 568.1% YoY.
• Net profit for the year grew by 5.6% YoY.
• Net profit margins during the year grew from 9.9% in FY23 to 11.4% in FY24.

NTPC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,733,380	1,588,748	-8.3%
Other income	Rs m	9,333	62,350	568.1%
Total Revenues	Rs m	1,742,712	1,651,098	-5.3%
Gross profit	Rs m	486,511	428,907	-11.8%
Depreciation	Rs m	147,923	139,432	-5.7%
Interest	Rs m	108,746	105,031	-3.4%
Profit before tax	Rs m	239,175	246,794	3.2%
Tax	Rs m	67,961	66,000	-2.9%
Profit after tax	Rs m	171,214	180,794	5.6%
Gross profit margin	%	28.1	27.0
Effective tax rate	%	28.4	26.7
Net profit margin	%	9.9	11.4

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NTPC Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 786 billion as compared to Rs 845 billion in FY23, thereby witnessing an decrease of -7.0%.
• Long-term debt down at Rs 1,462 billion as compared to Rs 1,879 billion during FY23, a fall of 22.2%.
• Current assets rose 6% and stood at Rs 858 billion, while fixed assets fell 15% and stood at Rs 3,217 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4,075 billion as against Rs 4,576 billion during FY23, thereby witnessing a fall of 11%.

NTPC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,470,232	1,498,850	1.9
Current Liabilities	Rs m	845,350	785,845	-7.0
Long-term Debt	Rs m	1,878,836	1,461,591	-22.2
Total Liabilities	Rs m	4,576,369	4,075,465	-10.9
Current assets	Rs m	810,474	857,660	5.8
Fixed Assets	Rs m	3,764,686	3,216,634	-14.6
Total Assets	Rs m	4,576,369	4,075,465	-10.9

NTPC Cash Flow Statement Analysis

• NTPC's cash flow from operating activities (CFO) during FY24 stood at Rs 348 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -151 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -195 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -2 billion net cash flows seen during FY23.

NTPC Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	400,516	348,309	-13.0%
Cash Flow from Investing Activities	Rs m	-261,072	-151,182	-
Cash Flow from Financing Activities	Rs m	-141,545	-195,187	-
Net Cash Flow	Rs m	-2,101	1,940	-

Current Valuations for NTPC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.6, an improvement from the EPS of Rs 17.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 417.6, stands at 20.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	178.8	163.8
TTM Earnings per share	Rs	17.7	18.6
Diluted earnings per share	Rs	17.7	18.6
Price to Cash Flow	x	5.3	8.0
TTM P/E ratio	x	10.1	20.9
Price / Book Value ratio	x	1.0	1.7
Market Cap	Rs m	1,540,800	2,555,072
Dividends per share (Unadj.)	Rs	7.3	7.8

Ratio Analysis for NTPC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.3x during FY24, from 3.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 12.1% during FY24, from 11.6% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 11.9% during FY24, from 10.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 7.0% during FY24, from 6.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	1.1
Debtors’ Days	Days	6	6
Interest coverage	x	3.2	3.3
Debt to equity ratio	x	1.3	1.0
Return on assets	%	6.1	7.0
Return on equity	%	11.6	12.1
Return on capital employed	%	10.4	11.9

To see how NTPC has performed over the last 5 years, please visit here.

NTPC Share Price Performance

Over the last one year, NTPC share price has moved up from Rs 217.9 to Rs 417.6, registering a gain of Rs 199.7 or around 91.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,203.1 (up 1.4%). Over the last one year it has moved up from 4,239.8 to 8,203.1, a gain of 3,963 points (up 93.5%).

Overall, the S&P BSE SENSEX is up 20.3% over the year.

(To know more, check out historical annual results for NTPC and quarterly results for NTPC)