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    Task 3 by Aditya Gupta

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    ADITYA GUPTA
    The document compares the financial performance of Tata Power and Adani Power over 5 years from 2017-2022. It analyzes their revenue growth, sales volume growth, market share, and debt levels. The key points are: 1) Tata Power achieved higher revenue CAGR of 8.7% compared to 6.4% for Adani Power over the period. 2) Sales volumes fell more for Tata Power (-4.5% CAGR) due to its shift from coal to renewables, while Adani Power saw lower decline of 2.8% with long term agreements. 3) Tata Power has been consistently profitable with an average net margin of 2.5%,

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    Task 3 by Aditya Gupta

    Uploaded by

    ADITYA GUPTA
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    The document compares the financial performance of Tata Power and Adani Power over 5 years from 2017-2022. It analyzes their revenue growth, sales volume growth, market share, and debt levels. The key points are: 1) Tata Power achieved higher revenue CAGR of 8.7% compared to 6.4% for Adani Power over the period. 2) Sales volumes fell more for Tata Power (-4.5% CAGR) due to its shift from coal to renewables, while Adani Power saw lower decline of 2.8% with long term agreements. 3) Tata Power has been consistently profitable with an average net margin of 2.5%,

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    The document compares the financial performance of Tata Power and Adani Power over 5 years from 2017-2022. It analyzes their revenue growth, sales volume growth, market share, and debt levels. The key points are: 1) Tata Power achieved higher revenue CAGR of 8.7% compared to 6.4% for Adani Power over the period. 2) Sales volumes fell more for Tata Power (-4.5% CAGR) due to its shift from coal to renewables, while Adani Power saw lower decline of 2.8% with long term agreements. 3) Tata Power has been consistently profitable with an average net margin of 2.5%,

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    © All Rights Reserved
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    21 views7 pages

    Task 3 by Aditya Gupta

    Uploaded by

    ADITYA GUPTA
    The document compares the financial performance of Tata Power and Adani Power over 5 years from 2017-2022. It analyzes their revenue growth, sales volume growth, market share, and debt levels. The key points are: 1) Tata Power achieved higher revenue CAGR of 8.7% compared to 6.4% for Adani Power over the period. 2) Sales volumes fell more for Tata Power (-4.5% CAGR) due to its shift from coal to renewables, while Adani Power saw lower decline of 2.8% with long term agreements. 3) Tata Power has been consistently profitable with an average net margin of 2.5%,

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    of 7

    COMPARISON OF TATA POWER AND ADANI

    POWER
     Comparison of 5 years Sales Growth.
    2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
    Revenue (in m)
    Adani Power 2,03,042 2,38,841 2,64,677 2,62,214 2,77,111
    Tata Power 2,75,605 3,08,868 3,03,502 3,37,355 4,39,227

    Revenue Growth (%)


    Adani Power -10.20% 17.60% 10.80% -0.90% 5.70%
    Tata Power -4.70% 12.10% -1.70% 11.20% 3.00%

    Revenue (in M)
    5,00,000
    4,50,000
    4,00,000
    3,50,000
    3,00,000
    2,50,000
    2,00,000
    1,50,000
    1,00,000
    50,000
    0
    2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

    Adani Power Tata Power

    The revenue of Tata Power has grown at a compound annual growth rate (CAGR) of 8.7%
    against 6.4% of Adani Power in the last five years.

    Despite India's under penetration of power, the top private players didn't see strong growth
    in their revenues. This is mainly because of a slowdown in economic growth and lower
    agricultural demand due to heavy monsoons.

    The same is reflected in the lower volumes from thermal sources for both companies.
     Compare 5 years Revenue Growth.

    2017- 2018- 2019- 2020- 2021-


    2018 2019 2020 2021 2022
    Sales Volume (in m
    0.70%
    units)
    Adani Power 48,000 55,200 64,000 59,300 52,100
    Tata Power 18,727 19,250 18,119 16,504 16,630

    2017- 2018- 2019- 2020- 2021-


    2018 2019 2020 2021 2022
    Sales Volume
    Growth (%)
    Adani Power -20.30% 15.00% 15.90% -7.30% -13.80%
    Tata Power 1.20% 2.80% -5.90% -8.90% 0.70%

    Sales Growth
    70,000

    60,000

    50,000

    40,000

    30,000

    20,000

    10,000

    0
    2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

    Adani Power Tata Power

    The volume for Adani Power fell 2.8% while that of Tata Power fell -4.5%% (CAGR) in the last
    five years.

    For Adani Power, the volumes showed higher resistance to economic slowdown mainly due
    to long term power purchase agreements the company has with almost all its clients.

    The fall in volumes for Tata Power is higher mainly because the company is slowly phasing
    out coal-based energy sources and replacing them with renewable energy.
     Compare Market Share of the company in the industry.
    2020-
    2016-2017 2017-2018 2018-2019 2019-2020
    2021
    Adani Power -27.30% -10.20% -4.10% -8.60% 4.80%

    Tata Power -4.00% 3.90% 4.00% 1.20% 1.70%

    Net Profit
    5.00% 4.80% 3.90% 4.00%
    1.20% 1.70%
    0.00%
    ADANI POWER TATA POWER
    -5.00%
    -4.10% -4.00%
    -10.00%
    -8.60%
    -10.20%
    -15.00%

    -20.00%

    -25.00%
    -27.30%
    -30.00%

    2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

    After turning profitable for the first time in the financial year 2021, the company's net profit
    grew by 2.8x in the financial year 2022.
    Tata Power has been generating profits for a long time now with a five-year average net profit
    margin of 2.5%. The strong performance of the Solar EPC business combined with long-term
    power supply agreements has helped the company achieve that.

     Compare Debt of the company.


    2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

    Adani Power 22.4 4.4 5.5 3.3 2.5

    Tata Power 1.5 1.9 1.8 1.4 1.5


    DEBT TO EQUITY
    Adani Power Tata Power

    22.4

    5.5
    4.4
    3.3 2.5
    1.5 1.9 1.8 1.4 1.5

    2017-2018 2018-2019 2019-2020 2020-2021 2021-2022

     CONCLUSION
    Both Tata Power and Adani Power have used leverage to fund their business. Tata Power's
    debt to equity ratio stands lower at 1.5x in the financial year 2022.
    This was due to the capacity expansion at its Odisha plants and increased costs from the
    renewable capacity expansion.
    Tata Power enjoys a comfortable debt position to support its growth, with a net debt to equity
    of 1.5x. The current interest coverage ratio stands at 1.62x.
    On the other hand, Adani Power has a debt-to-equity ratio of 2.5x and an interest coverage
    ratios of 2.6x in the financial year 2022. This clearly indicates its balance sheet is over-
    leveraged.
    COMPARISON OF SBI AND ICICI BANK
     Comparison of 5 years Sales Growth.
    2018 2019 2020 2021 2022
    SBI 220499.31 242868.65 257323.59 265150.63 275457.29
    ICICI 54965.89 63401.19 74798.32 79118.27 86374.55

    SALES
    300000
    250000
    200000
    150000
    100000
    50000
    0
    2018 2019 2020 2021 2022

    SBI ICICI

     Compare 5 years Revenue Growth.


    2018 2019 2020 2021 2022
    SBI 278082.99 278082.99 296329.43 307107.27 316021.2
    ICICI 72385.52 77913.36 91246.94 98086.8 104892.08

    REVENUE
    350000
    300000
    250000
    200000
    150000
    100000
    50000
    0
    2018 2019 2020 2021 2022

    SBI ICICI
     Compare Market Share of the company in the industry.
    2018 2019 2020 2021 2022
    SBI -2.96% 0.35% 5.63% 7.69% 11.49%
    ICICI 12.33% 5.30% 10.60% 20.46% 27.02%

    NET PROFIT
    SBI ICICI

    27.02%
    20.46%
    12.33% 10.60%
    5.30% 11.49%
    5.63% 7.69%
    ICICI
    0.35%
    SBI

    2018
    -2.96% 2019 2020 2021 2022

     Compare Debt of the company.


    2018 2019 2020 2021 2022
    SBI 3,62,142 4,03,017 3,14,655 4,17,297 4,26,043
    ICICI 9,64,459 9,64,459 10,98,365 12,30,432 14,11,297

    DEBT TO EQUITY
    16,00,000.00
    14,00,000.00
    12,00,000.00
    10,00,000.00
    8,00,000.00
    6,00,000.00
    4,00,000.00
    2,00,000.00
    0.00
    2018 2019 2020 2021 2022

    SBI ICICI
     CONCLUSION
    In terms of performance, growth and shares performance, SBI has much better results
    when compared to ICICI. Also, SBI has lower debt compared to ICICI which is good for the
    SBI bank and its investors. Therefore, SBI should be preferred choice for investment.

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