Ntpc Debt jumped on 25.5% in 2015 and Revenue increased slightly on 1.9%
29-05-2015 • About Ntpc (
$NTPC) • By InTwits
Ntpc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ntpc has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.3%. At the same time it's a lot of higher than industry average of 11.7%.
- CAPEX is quite volatile: 920 in FY2015, 1,890 in FY2014, 550 in FY2013, 1,300 in FY2012, 990 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ntpc ($NTPC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 574,185 | 649,583 | 706,111 | 784,787 | 799,440 | 1.9% |
| EBITDA | 126,651 | 146,469 | 177,050 | 196,016 | 168,579 | -14.0% |
| Net Income | 93,482 | 98,147 | 125,908 | 114,036 | 99,863 | -12.4% |
Balance Sheet
|
|---|
| Cash | 6,990 | 11,682 | 6,274 | 9,458 | 11,277 | 19.2% |
| Short Term Debt | 36,953 | 49,522 | 58,311 | 59,127 | 88,891 | 50.3% |
| Long Term Debt | 470,596 | 548,519 | 645,877 | 755,423 | 933,629 | 23.6% |
Cash flow
|
|---|
| Capex | 137,358 | 131,497 | 204,057 | 189,485 | 193,199 | 2.0% |
Ratios
|
|---|
| Revenue growth | 19.0% | 13.1% | 8.7% | 11.1% | 1.9% | |
| EBITDA growth | -5.0% | 15.6% | 20.9% | 10.7% | -14.0% | |
| EBITDA Margin | 22.1% | 22.5% | 25.1% | 25.0% | 21.1% | -3.9% |
| Net Income Margin | 16.3% | 15.1% | 17.8% | 14.5% | 12.5% | -2.0% |
| CAPEX, % of revenue | 23.9% | 20.2% | 28.9% | 24.1% | 24.2% | 0.0% |
| ROIC | 8.7% | 9.0% | 9.6% | 9.1% | 6.3% | -2.8% |
| ROE | 14.3% | 13.7% | 16.2% | 13.5% | 11.8% | -1.7% |
| Net Debt/EBITDA | 4.0x | 4.0x | 3.9x | 4.1x | 6.0x | 1.9x |
Revenue and profitability
Ntpc's Revenue increased slightly on 1.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.58 pp from 5.1% to 5.7% in FY2015.
Net Income marign decreased on 2.0 pp from 14.5% to 12.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Ntpc had CAPEX/Revenue of 24.2%. The company's CAPEX/Revenue increased on 3.9 pp from 20.2% in FY2012 to 24.2% in FY2015. It's average CAPEX/Revenue for the last three years was 25.7%.Ntpc investments to CAPEX were large: 115% of EBITDA.
Return on investment
The company operates at low ROIC (6.32%) and ROE (11.79%). ROIC decreased on 2.8 pp from 9.1% to 6.3% in FY2015. ROE decreased slightly on 1.7 pp from 13.5% to 11.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.0x and Debt / EBITDA is 6.1x. Net Debt / EBITDA surged on 1.9x from 4.1x to 6.0x in FY2015. Debt jumped on 25.5% in FY2015 while cash jumped on 19.2% in FY2015.
Appendix 1: Peers in Electric Utilities
Below we provide Ntpc benchmarking against other companies in Electric Utilities industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Adani Power ($ADANIPOWER) | | 91.5% | 65.7% | 128.0% | 21.7% |
| Nava Bharat Ventures ($NBVENTURES) | | -10.4% | 15.3% | 51.6% | 6.1% |
| Ptc India ($PTC) | | -12.1% | 14.2% | 31.5% | 14.9% |
| Bf Utilities ($BFUTILITIE) | -79.1% | 41.4% | 9.2% | 20.6% | |
| Power Grid Corporation Of India ($POWERGRID) | -63.7% | 19.7% | 27.2% | 18.9% | |
| |
|---|
| Median (16 companies) | -63.1% | 32.0% | 15.3% | 8.4% | 6.1% |
|---|
| Ntpc ($NTPC) | | 13.1% | 8.7% | 11.1% | 1.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 85.4% | 83.7% | 85.6% | 84.9% | |
| Bf Utilities ($BFUTILITIE) | 36.4% | 43.9% | 55.1% | 61.2% | |
| Jaiprakash Power Ventures ($JPPOWER) | 88.6% | 91.7% | 70.6% | 60.1% | |
| Nhpc ($NHPC) | 69.6% | 71.4% | 66.5% | 59.3% | 63.4% |
| Orient Green Power Company ($GREENPOWER) | 42.7% | 24.4% | 53.3% | 57.8% | 82.8% |
| |
|---|
| Median (17 companies) | 31.9% | 28.3% | 25.1% | 26.2% | 19.6% |
|---|
| Ntpc ($NTPC) | 22.1% | 22.5% | 25.1% | 25.0% | 21.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 590.3% | 378.9% | 341.9% | 229.9% | |
| Power Grid Corporation Of India ($POWERGRID) | 160.8% | 184.3% | 172.4% | 173.4% | |
| Gvk Power & Infrastructure ($GVKPIL) | 76.3% | 139.1% | 136.7% | 109.1% | 52.7% |
| Orient Green Power Company ($GREENPOWER) | 340.9% | 422.5% | 170.0% | 77.0% | 19.3% |
| Nava Bharat Ventures ($NBVENTURES) | 39.1% | 69.0% | 30.5% | 70.6% | 55.3% |
| |
|---|
| Median (15 companies) | 76.3% | 104.0% | 46.8% | 39.9% | 16.3% |
|---|
| Ntpc ($NTPC) | 23.9% | 20.2% | 28.9% | 24.1% | 24.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alstom T&D India ($ALSTOMT&D) | 11.2% | 0.0% | 15.7% | 14.6% | 16.1% |
| Ptc India ($PTC) | 8.1% | 11.2% | 10.4% | 13.6% | 12.3% |
| Nava Bharat Ventures ($NBVENTURES) | 11.7% | 5.3% | 6.3% | 9.2% | 5.2% |
| Tata Power Co ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| Power Grid Corporation Of India ($POWERGRID) | | 8.3% | 8.8% | 8.4% | |
| |
|---|
| Median (19 companies) | 4.2% | 4.8% | 5.4% | 4.9% | 6.3% |
|---|
| Ntpc ($NTPC) | 8.7% | 9.0% | 9.6% | 9.1% | 6.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Energy Ventures ($KSK) | 13.1x | 16.3x | 16.2x | 27.0x | |
| Gvk Power & Infrastructure ($GVKPIL) | 9.6x | 19.1x | 23.9x | 20.1x | 20.2x |
| Lanco Infratech ($LITL) | 9.3x | 16.3x | 12.9x | 19.2x | |
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | |
| Gmr Infrastructure ($GMRINFRA) | 7.9x | 19.5x | 15.1x | 16.7x | |
| |
|---|
| Median (19 companies) | 7.9x | 11.3x | 8.6x | 6.6x | 4.6x |
|---|
| Ntpc ($NTPC) | 4.0x | 4.0x | 3.9x | 4.1x | 6.0x |
