Ratio Analysis of

Power Grid Corporation of India Ltd.

Over the last 5 years

SUBMITTED BY:SHUBHAM DIKSHIT

PGDM-FS
ROLL NO 10

BALANCE SHEET
Balance Sheet of
Power Grid
Corporation of India

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

4,629.73

4,629.73

4,208.84

4,629.73

4,629.73

4,208.84

16,737.27 11,585.08

9,325.1
4

Sources Of Funds
Total Share
4,629.73
Capital
Equity Share
4,629.73
Capital
Share
Application
0
Money
Preference
0
Share Capital
Reserves

Mar
'09
12
mths

Mar '13

4,208.8
4
4,208.8
4

21,609.74

18,858.05

Revaluation
Reserves

Net worth

26,239.4
7

23,487.7
8

21,367.0
0

15,793.9
2

Secured Loans

66,107.98

51,446.77

36,637.03 31,345.78

2,685.89

2,098.69

2,028.81

3,071.01

68,793.8
7
95,033.3
4

53,545.4
6
77,033.2
4

38,665.8
4
60,032.8
4

34,416.7
9
50,210.7
1

13,533
.98
25,288.
25
3,177.1
8
28,465
.43
41,999
.41

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

Unsecured
Loans
Total Debt
Total
Liabilities

Mar
'09
12
mths

Application Of Funds
Gross Block

80,525.70

63,347.47

50,332.20 43,186.09

Less: Accum.
Depreciation

19,125.06

15,685.17

13,108.22 11,141.02

Net Block

61,400.6
4

47,662.3
0

37,223.9
8

32,045.0
7

40,319.
33
9,190.8
9
31,128
.44

Capital Work in
Progress

19,114.92

28,183.54

23,712.93 20,438.37

Investments

1,147.50

1,284.45

1,398.35

1,453.22

551.53

440.31

381.51

344.9

1,434.09

1,497.49

1,114.00

2,214.86

1,661.97

2,336.88

3,680.06

3,277.64

3,647.59

4,274.68

5,175.57

5,837.40

25,822.91

8,803.38

8,210.74

3,494.92

29,470.50

13,078.06

13,386.31

9,332.32

14,889.28

11,696.95

12,813.27 10,603.54

Provisions

1,210.94

1,478.16

Total CL &
Provisions

16,100.22

13,175.11

Net Current
Assets

13,370.2
8

-97.05

2,302.42

3,729.51

Miscellaneous
Expenses

3.56

5.5

Total Assets

95,033.3
4

77,033.2
4

60,032.8
4

50,210.7
1

41,999
.41

Inventories
Sundry Debtors
Cash and Bank
Balance
Total Current
Assets
Loans and
Advances
Fixed Deposits
Total CA, Loans
& Advances
Current
Liabilities

2,875.46

2,458.29

15,688.73 13,061.83

13,286.
00
1,592.
83
297.57
1,373.5
6
53.06
1,724.1
9
2,928.0
1
2,375.8
2
7,028.0
2
8,851.5
6
2,189.8
2
11,041.
38
4,013.
36

PROFIT & LOSS ACCOUNT STATEMENT

Mar
'10
12 mths 12 mths

Mar '13

Mar '12 Mar '11

Mar '09

12 mths

12 mths

12 mths

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost

12,757.8 10,164.
486.55
5
27
0
0
0
12,757.8 10,164.
486.55
5
27
570.89
620.74
710.05
0
0
0
13,328. 10,785. 1,196.6
74
01
0
63.59
105.94
886.4

0.05
85.01
842.97

0.03
75.63
745.89

7,127.4
5
0
7,127.4
5
491.79
0
7,619.
24
0.03
68.27
959.26

6,579.81
0
6,579.81
496.99
0
7,076.80
0.02
55.16
899.86

Other Manufacturing
Expenses
Selling and Admin
Expenses
Miscellaneous
Expenses
Preoperative
Expense Capitalized
Total Expenses

164.71

107.04

185.38

222.73

765.51

724.92

623.27

116.57

106.58

-169.91

-913.16

1,821.44

1,652.9
5

1,444.8
2

1,324.3
1

478.23

Mar '13
Operating Profit
PBDIT

Mar '12 Mar '11

12 mths 12 mths
10,936. 8,511.3
41
2
11,507.3 9,132.0
0
6
1,943.2
2,535.22
6

12 mths
958.27
-248.22

5,620.16

4,616.2
6

24.7

-18.66

PBT (Post Extra-ord

Items)

5,644.86

4,597.6
0

Tax

1,410.36

1,342.6
5

Reported Net
Profit

4,234.5 3,254.9
0
5

Total Value Addition

1,757.85

1,652.9
0

1,625.4
4
1,873.6
6
2,199.3
9
0
4,073.0
5
-4.37
4,077.4
2
1,127.8
4
5,205.2
6
1,444.7
9

Preference Dividend

1,273.18

976.89

Interest
PBDT

8,972.08

Depreciation

3,351.92

Other Written Of
Profit Before Tax
Extra-ordinary items

Equity Dividend

7,188.8
0
2,572.5
4
0

Mar
'10
12 mths
5,803.
14
6,294.9
3
1,586.1
2
4,708.8
1
1,979.6
9
1.78

Mar '09
12 mths
6,101.58
6,598.57
3,199.94
3,398.63
1,093.97
1.83

2,727.3
4

2,302.83

-86.13

-230.69

2,641.2
1

2,072.14

595.31

377.63

2,040.
94

1,690.61

1,324.2
8

478.21

810.23

631.34

505.08

Corporate Dividend
208.55
Tax
Per share data (annualised)
Shares in issue
46,297.2
(lakhs)
5
Earnings Per
9.15
Share (Rs)
Equity Dividend (%)

27.5

156.97

132.33

105.67

85.84

46,297.
25

46,297.
25

42,088.
41

42,088.41

7.03

-11.24

4.85

4.02

21

17.5

15

12

KEY FINANCIAL RATIOS OF POWER GRID CORPORATION OF INDIA

Ratios
Mar '13

Mar '12

Mar '11

Mar '10

A) Balance
Sheet Ratios
Current Ratio=
Current
Assets/Current
Liabilities

1.63

0.88

0.78

0.65

0.60

Liquid Ratio=
Quick
Assets/Quick
Liabilities

1.80

0.96

0.81

0.68

0.61

Stock to
Working Capital
Ratio = Closing
Stock / Working
Capital

0.04125
%

Proprietor's ratio
= Proprietor's
Funds/Total
Assets

27.61%

Debt Equity
Ratio =
Borrowed Funds/
Proprietors
Funds
Capital Gearing
Ratio = Capital
Entitled to Fixed
Interest or
Dividend /
Capital Not
Entitled to Fixed
Interest

B) Revenue
Statement
Ratios

2.62

4.53694 -0.1657%
%

30.49%

2.28

35.59%

1.81

0.09248
%

31.45%

2.18

2.10

2.62

2.27

1.80

2.17

Mar '13

Mar '12

Mar '11

Mar '10

Gross Profit
Ratio = GP/Net
Sales

59.44%

58.42%

-648.98% 53.57%

76.04%

Operating Profit
ratio =
Operating
Profit/Net Sales
* 100

85.72%

83.73%

-196.95% 81.34%

92.67%

Expenses Ratio
=
Expenditure/Net
Sales

0.73%

0.09%

3.98%

0.01%

Net Profit ratio =

NPAT/Net Sales * 31.76%
100

30.18%

-435.00% 26.77%

23.87%

Stock Turnover
Ratio = COGS /
Average Stock

23.13

23.08

1.28

--

--

Return on
Capital
Employed =
PBIT / Capital
Employed

8.58%

8.51%

-4.07%

8.58%

13.10%

Returns On
Proprietor's
Funds = NPAT /
Proprietor's
Fund * 100

16.13%

0.03%

C) Composite
Ratios

13.85%

-24.36%

12.92%

Dividend Per
Share = Total
Dividend Paid /
No. Of Shares

2.75

2.10

1.75

1.50

1.20

Earnings Per
Share = (NPATpreference
Dividend)/No. Of
equity Shares

9.15

7.03

-11.24

4.85

4.02

Dividend Payout
Ratio =
Dividend To
Equity Share
Holders / Profit
Available to
Equity
Shareholders *
100

34.99

34.83

34.94

36.11

34.95

Debt Service
Ratio = PBIT /
Interest

3.21

Debtors
Turnover Ratio =
8.70
Credit Sales /
(Debtors + Bills
Receivable)
Price Earnings
Ratio = MPS /
EPS

15.03

3.37

7.78

-1.50

0.29

2.72

3.97

5.32

INTERPRETATION
1. Current ratio has increased substantially over the years which shows that current assets
have increased with respect to current liabilities. Assets have increased this year mainly
due to increase in loans and advances.
2. Proprietors ratio has decreased and debt equity ratio has increased over the last year due
to shrinking of proprietors funds because of loans and advances taken.
3. Net profit ratio is consistent over the last years and also that net sales have increased
significantly. This further shows that the profit margin for the company are pretty stable
even during high production levels. Now, since the company has taken loans and
advances indicating future expansion plans in view of getting high profits considering the
profit margin to remain stable.
4. Stock turnover ratio has increased over the years indicating that company has taken
measures to efficiently utilize its inventory in order to gain excess of working capital i.e
(current assets-current liabilities)
5. Return on Capital Employed (ROCE) or Return on Investment (ROI) has seen a decline
in the past few years but power grid corporation has been able to maintain the level of
ROI at 8% over the last year, keeping in view that company has taken huge amount of
loans it shows a positive sign for the current years ROI and it is also expected to increase
over the next financial periods if everything goes normal.
6. Earnings per share has almost doubled in the last five years which shows that the bottom
line has risen and company is targeting towards higher profit margins and uncapping its
potential to deliver huge amount of profits by increasing its production.
7. Debt service ratio has shown a significant rise over the last 5 years indicating that the

company is in a more comfortable position to payout its interests and also ensure profits
after this.