WACC

Eq+ RS /Eq+RS+Dbt*K 9.14

Equity portion 0.62

Debt Portion 0.38

WACC

Cost of Equity 12.50

Beta: 0.67
Rm 0.16
Rf 0.07

Cost of debt 4.79

Reported Net Profit 5,820.20 6,864.70 7,414.80 8,201.30 8,728.20
Total Value Addition 1,483.04 1,854.37 2,338.01 2,431.53 3,061.66
Preference Dividend 0 0 0 0 0
Equity Dividend 243.97 282.23 282.61 278.83 549.52
growrth rate 0.17946118690079 0.08013460165776 0.10607164050278
1+g 1.17946118690079 1.08013460165776 1.10607164050278
(1+g)^n 1.10661536294696
(1+g)^n-1----growth 0.10661536294696
0.06424591223343
1.06424591223343
Key Financial Ratios of NTPC ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08

Investment Valuation Ratios

Face Value 10 10 10
Dividend Per Share 2.8 3.2 3.5
Operating Profit Per Share (Rs) 9 12.32 13.98
Net Operating Profit Per Share (Rs) 31.71 39.58 44.98
Free Reserves Per Share (Rs) 43.24 47.38 52.34
Bonus in Equity Capital -- -- --
Profitability Ratios
Operating Profit Margin(%) 28.4 31.13 31.07
Profit Before Interest And Tax Margin(%) 18.66 22.84
Gross Profit Margin(%) 32.62 33.28 25.31
Cash Profit Margin(%) 27.3 25.25 23.74
Adjusted Cash Margin(%) 24.31 24.58 23.74
Net Profit Margin(%) 20.2 19.39 18.51
Adjusted Net Profit Margin(%) 17.2 18.69 18.51
Return On Capital Employed(%) 12.26 14.69 15.15
Return On Net Worth(%) 12.95 14.13 13.66
Adjusted Return on Net Worth(%) 11.02 13.61 13.57
Return on Assets Excluding Revaluations 7.84 8.13 65.81
Return on Assets Including Revaluations 7.84 8.13 65.81
Return on Long Term Funds(%) 12.26 14.69 15.15
Liquidity And Solvency Ratios
Current Ratio 2.11 2.42 2.36
Quick Ratio 1.84 2.18 2.16
Debt Equity Ratio 0.46 0.52 0.5
Long Term Debt Equity Ratio 0.46 0.52 0.5
Debt Coverage Ratios
Interest Cover 11.59 9.49 10.28
Total Debt to Owners Fund 0.46 0.52 0.5
Financial Charges Coverage Ratio 5.04 6.29 7.31
Financial Charges Coverage Ratio Post Ta 4.93 5.35 5.82
Management Efficiency Ratios
Inventory Turnover Ratio 12.31 14.1 33.59
Debtors Turnover Ratio 23.32 30.78 17.52
Investments Turnover Ratio 25.14 30.51 33.59
Fixed Assets Turnover Ratio 0.76 0.82 0.7
Total Assets Turnover Ratio 0.4 0.44 0.46
Asset Turnover Ratio 0.57 0.65 0.7
Average Raw Material Holding -- -- --
Average Finished Goods Held -- -- --
Number of Days In Working Capital 131.98 167.21 171.01
Profit & Loss Account Ratios
Material Cost Composition 0.09 0.07 0.07
Imported Composition of Raw Materials -- -- --
Selling Distribution Cost Composition 0.15 0.17 0.12
Expenses as Composition of Total Sales -- -- --
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 45.23 44.11 45.53
Dividend Payout Ratio Cash Profit 33.45 33.83 35.33
Earning Retention Ratio 46.91 54.23 54.17
Cash Earning Retention Ratio 62.44 65.2 64.49
AdjustedCash Flow Times 2.95 2.89 2.86

Mar '06 Mar '07 Mar '08

Earnings Per Share 7.06 8.33 8.99

Book Value 54.53 58.94 65.81

Source : Religare Technova

Explore NTPC connections
Mar '09 Mar '10

10 10
3.6 3.8
12.79 15.04
50.91 56.25
56.25 -0.47
-- --

25.11 26.73
18.06 19.79
19.48 21.01
21.1 21.87
21.1 21.87
18.11 17.72
18.11 17.72
12.27 12.58
13.9 14.06
12.18 13.09
71.55 75.26
71.55 75.26
12.27 12.58

2.89 2.44
2.59 2.17
0.59 0.61
0.59 0.61

11.91 6.97
0.59 0.61
7.97 8.44
7.08 7.29

28.21 13.93
12.78 9.06
28.21 13.93
0.67 0.69
0.45 0.46
0.67 0.69
-- --
-- --
173.56 141.09

0.07 0.06
-- --
0.13 --
-- --

42.31 41.94
32.83 32.17
51.75 54.95
63.7 66.03
3.62 3.51

Mar '09 Mar '10

9.95 10.59
71.55 75.72
Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09

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
Equity Share Capital 8,245.50 8,245.50 8,245.50 8,245.50
Share Application 0.00 0.00 0.00 0.00
Preference Share Ca 0.00 0.00 0.00 0.00
Reserves 36,713.20 40,351.30 46,021.90 50,749.40
Revaluation Reserv 0.00 0.00 0.00 0.00
Networth 44,958.70 48,596.80 54,267.40 58,994.90
Secured Loans 6,173.50 7,479.60 7,314.70 8,969.60
Unsecured Loans 14,464.60 17,661.50 19,875.90 25,598.20
Total Debt 20,638.10 25,141.10 34,567.80
Total Liabilities 65,596.80 73,737.90 81,458.00 93,562.70
Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 45,917.60 50,604.20 53,368.00 62,353.00
Less: Accum. Deprec 22,950.10 25,079.20 27,274.30 29,415.30
Net Block 22,967.50 25,525.00 26,093.70 32,937.70
Capital Work in Pro 13,756.00 16,962.30 22,478.30 26,404.90
Investments 19,289.10 16,094.30 15,267.20 13,983.50
Inventories 2,340.50 2,510.20 2,675.70 3,243.40
Sundry Debtors 867.80 1,252.30 2,982.70 3,584.20
Cash and Bank Bala 176.80 750.10 473.00 271.80
Total Current Asset 3,385.10 4,512.60 6,131.40 7,099.40
Loans and Advance 6,555.10 8,781.70 9,936.20 7,826.10
Fixed Deposits 8,294.60 12,564.50 14,460.20 15,999.80
Total CA, Loans & 18,234.80 25,858.80 30,527.80 30,925.30
Deffered Credit 0.00 0.00 0.00 0.00
Current Liabilities 4,910.30 5,422.20 5,548.40 7,439.20
Provisions 3,740.30 5,280.30 7,360.60 3,249.50
Total CL & Provision 8,650.60 10,702.50 12,909.00 10,688.70
Net Current Assets 9,584.20 15,156.30 17,618.80 20,236.60
Miscellaneous Expe 0.00 0.00 0.00 0.00
Total Assets 65,596.80 73,737.90 81,458.00 93,562.70

Contingent Liabilitie 16,429.80 25,218.80 29,361.80 66,083.20

Book Value (Rs) 54.53 58.94 65.81 71.55
Source : Asian CERC
Mar '10

12 mths

8,245.50
8,245.50
0.00
0.00
54,192.00
0.00
62,437.50
9,079.90
28,717.10
37,797.00
100,234.50
Mar '10

12 mths

66,850.10 CHANGE IN CAPEX 4,497.10

32,088.80 CHANGE IN DEPREC 2,673.50
34,761.30 CHANGE IN NC WOR 1,221.00
32,104.30 DEBT ISSUE - DEBT 3,124.30
14,807.10 fcfe
3,347.70
6,651.40
14,459.50 PBIT(1-t) 9,484.79
24,458.60 T RATE 0.25
6,357.10
0.00
30,815.70
0.00
9,568.70
3,070.50 Growth=ROE*B 7.68
12,639.20 1+growth 1.08
18,176.50
385.30 NW+TD 100,234.50
100,234.50

30,534.60
75.72
Debt ratio for 2010 0.38
Equity ratio for 201 0.62
Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 26,318.60 32,817.30 37,302.40 42,196.80
Excise Duty 175.7 185.6 211.4 221.6
Net Sales 26,142.90 32,631.70 37,091.00 41,975.20
Other Income 2,897.90 2,875.60 3,119.70 3,012.80
Stock Adjustments 0 0 0 0
Total Income 29,040.80 35,507.30 40,210.70 44,988.00
Expenditure
Raw Materials 25 23.7 26.8 31
Power & Fuel Cost 16,497.10 19,947.60 22,160.70 27,292.30
Employee Cost 1,137.50 1,362.60 2,897.60
Other Manufacturing Expens 705.1 842.9 920 940
Selling and Admin Expenses 353.2 410.8 389.8 473.2
Miscellaneous Expenses 247.2 292.4 368.2 394.9
Preoperative Exp Capitalised -256.4 -418.4 -544.7 -637.4
Total Expenses 18,708.70 22,461.60 25,550.10 31,391.60
Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths

Operating Profit 7,434.20 10,170.10 11,540.90 10,583.60

PBDIT 10,332.10 13,045.70 14,660.60 13,596.40
Interest 2,004.60 2,055.70 1,982.20 1,737.00
PBDT 8,327.50 10,990.00 12,678.40 11,859.40
Depreciation 2,047.70 2,075.40 2,138.50 2,364.50
Other Written Off 1.3 9.9 3.1 3.6
Profit Before Tax 6,278.50 8,904.70 10,536.80 9,491.30
Extra-ordinary items 633.7 134.2 -114 1,305.20
PBT (Post Extra-ord Items) 6,912.20 9,038.90 10,422.80 10,796.50
Tax 1,082.40 2,163.70 2,994.20 2,554.70
Reported Net Profit 5,820.20 6,864.70 7,414.80 8,201.30
Total Value Addition 18,683.70 22,437.90 25,523.30 31,360.60
Preference Dividend 0 0 0 0
Equity Dividend 2,308.70 2,638.50 2,885.90 2,968.30
Corporate Dividend Tax 323.8 389.6 490.5 501.7
Per share data (annualised)
Shares in issue (lakhs) 82,454.64 82,454.64 82,454.64 82,454.64
Earning Per Share (Rs) 7.06 8.33 8.99 9.95
Equity Dividend (%) 28 32 35 36
Book Value (Rs) 54.53 58.94 65.81 71.55
Source : Asian CERC
Mar '10

12 mths

46,623.60
245.9
46,377.70
2,869.00
0
49,246.70

31.1
29,689.10
2,412.40
1,096.60
0
750.9
0
33,980.10
Mar '10

12 mths

12,397.60
15,266.60
1,808.90
13,457.70
2,650.10
0
10,807.60
603.3
11,410.90
2,682.70
8,728.20
33,949.00
0
3,133.20
527.6

82,454.64
10.59
38
75.72
 YEAR Mar '2011 Mar '2012
PAT 9,658.76 10,688.53
Less: CAPEX 4,842.55 5,214.53
Add: DEPRECIATION 2,878.87 3,100.01
Less: CHANGE IN NON CASH WORKING CAPITAL 1,314.79 1,415.79
Add: DEBT ISSUE-DEBT REDEMPTION 3,364.29 3,622.72

FCFE 9,744.58 10,780.95

Terminal Value
Present value Factor (WACC or cost of cap-9.14) 0.92 0.84

Present Value 8,928.52 9,050.84

Free Cash Flow Equity Valuation 741,264.15

Value per Share 899.00
Mar '2013 Mar '2014 Mar '2015 Mar '2016
11,828.09 13,089.15 14,484.66
5,615.08 6,046.40 6,510.86
3,338.13 3,594.55 3,870.67
1,524.54 1,641.65 1,767.75
3,901.00 4,200.66 4,523.33

11,927.61 13,196.31 14,600.04 15,721.55

1,076,818.41
0.77 0.70 0.65 0.65

9,174.90 9,300.72 9,428.32 695,380.85