FINANCIAL STATEMENT ANALYIS AND
VALUATION PROJECT
SUBMITTED TO:
Prof. Ahindra Chakrabarty
Great Lakes Institute of Management,
Gurgaon
SUBMITTED BY:
Tanya Gupta
P221C062
PGDM 2022-2024
Great Lakes Institute of Management,
Gurgaon
Page | 1
Index
Particulars
Page No.
Introduction
3-4
Ownership & Control
4-5
Sales & Income Growth
6-7
Profit & Profit Growth
8-9
Profitability Aspects of the company
10-16
Liquidity Analysis
14-16
Liquidity Aspects of the company
16-22
Assets Growth
23-25
Capital Structure Analysis
26-29
Fund flow of financing assets
30-32
Cash Flow
32-35
Segment Analysis
35-36
Market Perception
36-37
Annexure
38-46
Dividend History & Share price data
46-47
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Project Work
Financial Statement Analysis of Adani Ports and Special Economic Zones
1.0 Introduction:
We have attempted to analyze Adani Ports and SEZ ltd. financial performance and assessing its
current financial standing. The purpose of this analysis is to assess company’s financial health
and performance. This analysis is required by the stake holders for decision making regarding
financing the company, extending short term loans to the company or for the shareholders who
wants to acquire the shares of the company for future prospects.
The starting point in analysis is to look at the past record. Information about past performance
is useful in judging future performance. An assessment of the current status will show where
the company stands at present. To a large extent
, the expectations of investors and creditors about future performance are shaped by their
evaluation of past performance and current position. Investors and creditors use information
about past to assess the prospects of a company. Investors expect an adequate return from the
company in the form of the dividends and market price appreciation. Lenders and creditors
expect the company to pay interest and repay the principal in accordance with the terms of
lending. Therefore, they are interested in predicting the earning power and debt paying ability
of the company. Investors and creditors try to balance expected risks and return.
Needless to mention comparisons are essentially intended to throw light on how well a
company is achieving its objectives. In order to decide the types of comparisons that are useful,
we need first to consider what a business is all about? What its objectives are. A generalization
that the overall objective of a business is to create value for its shareholders while maintaining
a sound financial position; implicit to this statement is the assumption is that value creation can
be measured.
We have taken standalone financial statements as our base documents but we will be using the
consolidated financial statement from time to time to drive home the point. It needs to be
mentioned financial statements are prepared keeping in view statutory requirements, legal
framework, accounting standards prevailing in the country. However, analysis and
interpretation though broadly remain similar but depending on the analysts’ assumptions,
interpretations may have differences.
Our approach to financial analysis followed a comprehensive framework of looking at various
parameters of company performance and use different ratios to substantiate the analysis. The
framework will be as under:
•
•
•
•
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The Business
Ownership and Control
Sales and Income Growth
Profit Growth – PAT-PBT-EBIT-EBITDA
•
•
•
Profitability- ROE-ROCE-ROA-ROS (proxy)
Cost Structure Analysis
Liquidity Analysis- Current Assets – Current Liabilities
•
•
•
•
•
Assets Growth- Non-Current Assets – Non-Current Assets
Capital Structure Analysis- Leverage -Debt Equity – Interest Coverage
Assets Utilization Aspects
Fund Flow of Financing Assets
Market
Perception- Equity-EPS- P/E
Introduction of the Company:
Adani Ports and Special Economic Zone (APSEZ) is a leading Indian conglomerate that
specializes in port infrastructure and logistics. Part of the renowned Adani Group, APSEZ has
emerged as a pivotal player in India's maritime and trade domain.
Driven by a mission to revolutionize the country's port capabilities, APSEZ manages a network
of strategically positioned ports along the Indian coast. Its primary focus is to streamline cargo
movement, boost trade connectivity, and contribute significantly to India's economic
advancement.
APSEZ's portfolio encompasses a range of ports catering to diverse sectors, including container
handling, bulk cargo, and liquid cargo. Renowned for its operational excellence and customercentric approach, the company has earned acclaim for delivering high-quality solutions to its
clientele.
Sustainability and technological innovation are cornerstones of APSEZ's success. The company is
dedicated to eco-friendly practices and deploys advanced technologies to optimize port
operations and supply chain efficiency. Moreover, APSEZ actively engages in corporate social
responsibility initiatives, reflecting its commitment to community welfare.
In summary, Adani Ports and Special Economic Zone (APSEZ) is a transformative force in India's
port and logistics sector, fostering trade, economic growth, and sustainable development
through its robust infrastructure, operational prowess, and community-driven initiatives.
2.0 Ownership and Control of the Company Shareholding of
the Company:
As of the end of the financial year on March 31, 2023, Adani Ports and SEZ. has a
comprehensive shareholding structure that reflects a diverse range of stakeholders and
entities. The company's equity is divided into fully paid-up shares of Rs 2 each. The following
breakdown outlines the ownership distribution of Gujarat Gas Ltd.:
• Gautambhai Shantilal Adani and Rajeshbhai Shantilal Adani (on
behalf of S.B. Adani Family Trust) are the largest shareholder in
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•
Adani Ports and SEZ. They hold 32.90% of the total equity shares.
This significant ownership signifies a substantial stake in the
company's operations and direction.
Life Insurance Corporation of India: Another prominent shareholder
is Life Insurance Corporation of India, possessing 9.12% of the total
equity shares and is also the
single largest
Shareholding Division
0%
public shareholder in the
company. Their ownership
demonstrates a notable interest
in Adani Ports and SEZ
endeavors.
Promoter
8%
12%
17%
FII
DII
63%
•
Adani Tradeline Private Limited
(formerly known as Adani
Tradeline LLP): Adani Tradeline
Private Limited (formerly known
as Adani Tradeline LLP) holds a 6.40% stake in Adani Ports and SEZ,
further highlighting the active involvement of the state government
in the company's operations and growth.
•
Flourishing Trade and Investment Limited: The Flourishing Trade and
Investment Limited is a shareholder with 5.76% in Adani Ports and
SEZ.
Details of Equity Shares held by Promoter and Promoter Group at the end of the
year As at March 31, 2023:
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Public
Others
3.0 Sales and Income (Topline) Growth:
Growth rate of Sales and Income indicates whether a company is able to drive its top line up so
that its market presence, share and aspects of control is retained. Higher growth rate in sales
and income implicitly indicates that company will be able to increase its profit at much higher
rate and hence boost up its bottom line. Analysts are also interested in the growth rate of
certain key products of the company to assess the potential of retaining market share of the
company on its various lines of product. These growth rates are compared with the rate of
growth in that particular industry or with similar product lines of other companies. Common
growth rate calculations include average growth rate and compound growth rate. Both involve
looking at information over a period of years typically 3 to 5 years, but may be more. Some
analyst prefers to give comment on yearly growth also.
From the standalone Profit and Loss Account of Adani Ports and SEZ we observe that:
INCOME
2023
2018
CAGR(%)
Revenue From Operations [Gross]
5,159.88
6,369.64
-4.1%
Revenue From Operations [Net]
5,159.88
6,369.64
-4.1%
Other Operating Revenues
77.27
164.18
-14.0%
Total Operating Revenues
5,237.15
6,533.82
Other Income
Total Revenue
2,998.79
8,235.94
1,607.32
8,141.14
-4.3%
13.3%
0.2%
Revenue From Operations [Gross]:
CAGR: -4.1%
This metric represents the company's total income from its main operational activities before
any deductions.
Revenue From Operations [Net]:
CAGR: -4.1%
Similar to the gross revenue, this represents the total income from operations after deducting
any expenses.
Other Operating Revenues:
CAGR: -14.0%
This metric includes any additional income from sources other than the primary operations.
Total Operating Revenues:
CAGR: -4.3%
This is the combined income from both main operational activities and other sources.
Other Income:
CAGR: 13.3%
This represents income earned from sources other than the core operations, such as
investments or interests.
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Total Revenue:
CAGR: 0.2%
This is the overall income earned by the company, including both operational and nonoperational sources.
Based on the CAGR calculations:
The company experienced a decline in its "Revenue From Operations" and "Total Operating
Revenues," with a CAGR of around -4.1% and -4.3% respectively. This suggests a slight
reduction in the core business income over the years.
The "Other Operating Revenues" also decreased with a CAGR of -14.0%, indicating a decline in
income from additional sources.
On the positive side, the "Other Income" saw significant growth with a CAGR of 13.3%,
suggesting that the company's non-operational income sources, such as investments,
contributed to increased earnings.
Overall, the "Total Revenue" showed minimal growth with a CAGR of 0.2%, indicating a
relatively stable financial performance over the analyzed period.
Calculation of CAGR over the period 2019 and 2022
We have calculated Compound Average Growth Rate (CAGR) of Sales and Income of Adani
Ports and SEZ over a period of five years 2019 and 2022. The Table below is self-explanatory.
Adani has registered a CAGR growth rate in revenue from operation in these five years at a rate
of 0.048% and in total revenue at a rate of 1.409%.
INCOME
2023
2019
CAGR(%)
Revenue From Operations [Gross]
5,159.88
5,147.58
0.048%
Revenue From Operations [Net]
5,159.88
5,147.58
0.048%
Other Operating Revenues
77.27
188.80
-16.362%
Total Operating Revenues
5,237.15
5,336.38
Other Income
Total Revenue
2,998.79
8,235.94
2,342.90
7,679.28
-0.375%
5.060%
1.409%
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4.0 Profit and Profit Growth:
The ability to generate profit on capital invested is a key determinant of a company's overall
value and the value of the securities it issues. Consequently, many equity analysts would
consider profitability to be a key focus of their analytical efforts. Profitability ref1ects a
company's competitive position to the market, and by extension, the quality of its
management. The income statement reveals the sources of earnings and the components of
revenue and expenses. Earnings can be distributed to shareholders or reinvested in the
company. Reinvested earnings enhance solvency and provide a cushion against short-term
problems. We have calculated different types of profit by rearranging the items in the profit
and loss account for these five years.
In the table below we have presented rearranged profit and loss account of Adani Ports and
SEZ.
Rearranging Items of P&L account (in crores)
Items
2021-22
2022-23
%change
Total Revenue
6,725.53
8,235.94
22.46%
Total Expenses
2,398.70
4,323.53
80.24%
PBITDA
4,326.83
3,912.41
-9.58%
Depn & Amortisation
599.61
612.98
2.23%
PBIT
3,727.22
3,299.43
-11.48%
Interest/Finance Cost
2,493.66
2,769.50
11.06%
PBT
1,233.56
529.93
-57.04%
Tax
324.17
-548.8
-269.29%
Exceptional Items
-611.83
-1,558.16
154.67%
Profit for the year
297.56
-479.43
-261.12%


EBITDA indicates the quantum of revenue available to cover operating and policy
related expenditures i.e., allocated costs of depreciation and amortization and finance
cost i.e., interest. EBITDA margin can be computed dividing EBITA by the Income or
topline revenue of the company. Higher EBDITA margin indicates some combination of
higher product pricing and lower product costs. The ability to charge a higher price is
constrained by competition, so EBDITA profit are affected by competition. If a product
has a competitive advantage (e.g., superior branding, better quality, or exclusive
technology), the company is better able to charge more for it. On the cost side, higher
gross profit margin also indicate that a company has a competitive advantage in product
costs.
Earnings Before Interest and Taxes (EBIT) is calculated EBITDA minus operating costs in
this case is only depreciation and amortization. So, EBIT margin increasing faster than
the EBITDA margin can indicate improvements in controlling operating costs. In
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

contrast, a declining EBIT margin could be an indicator of deteriorating control over
operating costs.
Profit Before Tax (PBT): Profit Before Tax (also called "earnings before tax") is calculated
as EBIT minus interest, so this ratio reflects the effects on profitability of leverage and
other (non-operating) income and expenses. If a company's pretax margin is rising
primarily as a result of increasing non- operating income, then we should evaluate
whether this increase reflects a deliberate change in a company's business focus and,
therefore, the likelihood that the increase will continue.
Profit After Tax (PAT): Net profit, or net income, is calculated as revenue minus all
expenses. Net profit includes both recurring and nonrecurring components. Generally,
the net profit margin adjusted for nonrecurring items offers a better view of a
company's potential future profitability.
Items added back to PAT (Rs in crores)
2021-22
2022-23
%change
3,715.00
2,354.25
-36.63%
599.61
612.98
2.23%
3,115.39
1,741.27
-44.11%
2,493.66
2,769.50
11.06%
621.73
-1,028.23
-265.38%
324.17
-548.80
-269.29%
297.56
-479.43
-261.12%
1.EBITDA(3+2)
2.DEPN
3.EBIT(5+4)
4.INTEREST/FINANCE CHARGES
5.PBT(7+6)
6.TAX
7. PAT(5-6)
Computation of Margins of Different Types of Profits (Amount Rs Crores)
EBITDA Margin
EBIT Margin
PBT Margin
PAT Margin
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2021-22
102.87%
88.61%
14.78%
7.07%
2022-23
74.70%
63.00%
-19.63%
-9.15%
EBITDA/total oper rev
EBIT/total oper rev
pbt/total oper rev
pat/total oper rev
Profitability Aspects of the Company
Return on Equity
i)
Return on Income
(proxy of Sales)
Return on Capital
Return on Equity:
Column1
Profit for the year
Equity Share Capital
Return on equity
2021-22
2022-23
297.56
-479.43
26,415.73
28,536.16
1.126%
-1.680%
The significant shift from a positive ROE of 1.126% in 2021-22 to a negative ROE of -1.680% in
2022-23 suggests a deterioration in the company's financial performance. Here are some key
takeaways:
 Profitability Challenges: The negative ROE in 2022-23 indicates that the company's
losses outweighed its equity, resulting in an unprofitable year. This could raise concerns
about the company's ability to manage its costs and generate revenue.
 Capital Efficiency: The positive ROE in 2021-22, while relatively low, indicated some
degree of effectiveness in utilizing shareholder equity to generate profits. However, the
negative ROE in 2022-23 highlights a potential inefficiency in capital utilization or
profitability.
 Risk Assessment: A negative ROE can raise red flags for investors and stakeholders, as it
suggests potential financial risks and challenges that need to be addressed. It's essential
for the company to identify the underlying causes of this negative performance and take
appropriate measures to rectify the situation.
In conclusion, the ROE analysis highlights the company's financial performance in terms of
generating profits from shareholder equity. The transition from a positive to a negative ROE
underscores the importance of closely monitoring financial performance, managing costs, and
making strategic decisions to enhance profitability and ensure sustainable growth.
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ii)
Return on Income (Proxy of Sales):
Column1
PBT
Income
Return on Income
2021-22
2022-23
1,233.56
6,725.53
18.3%
529.93
8,235.94
6.4%
The shift in Return on Income from 18.3% to 6.4% between 2021-22 and 2022-23 holds
significant implications for the company's financial performance:
Efficiency Fluctuation: The decrease in ROI from 2021-22 to 2022-23 suggests that the
company faced challenges in maintaining the same level of efficiency in converting its revenue
into profits.
Profit Margin Changes: The reduction in ROI could be a result of changing profit margins.
Impact on Business Strategy:. A declining ROI might prompt the need for strategic
adjustments.
Market Conditions: External factors such as changes in market demand, competitive pressures,
or economic conditions could also influence ROI.
In conclusion, the Return on Income analysis reveals the company's ability to generate profits
from its total income. The decrease in ROI from 18.3% to 6.4% highlights a potential decline in
profitability efficiency between the two years. To address this, the company should conduct a
detailed assessment of its operational processes, cost structures, and strategic initiatives to
identify areas for improvement and ensure sustained profitability.
iii)
Return on Capital Employed:
Column1
EBIT
Capital Employed
Return on Capital Employed
2021-22
2022-23
3,727.22
65,876.82
5.66%
3,299.43
72,946.93
4.52%
The Return on Capital Employed (ROCE) is a key financial metric that assesses a company's
ability to generate earnings in relation to the capital invested in the business.
The change in Return on Capital Employed between 2021-22 and 2022-23 holds significant
insights for the company's financial performance:
Capital Efficiency: The decrease in ROCE suggests that the company's ability to generate
earnings from its invested capital weakened from one year to the next. This might be due to
challenges in managing costs, generating revenue, or optimizing capital utilization.
Investment Decisions: A declining ROCE could prompt a review of the company's investment
decisions. It's important to ensure that capital expenditures are yielding the expected returns
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and are aligned with the company's strategic goals.
Profitability and Capital Allocation: The analysis of ROCE helps in evaluating how effectively
the company's profits are being generated in relation to the capital structure. A declining ROCE
might indicate that profitability is not keeping pace with capital expansion.
In summary, the Return on Capital Employed analysis highlights the company's ability to
generate returns on its invested capital. The decline in ROCE from 5.66% to 4.52% suggests that
the company faced challenges in maintaining the same level of capital efficiency, indicating a
need for closer scrutiny of its capital allocation strategies and operational effectiveness.
DuPont Analysis- The Decomposition of ROE
ROE measures the return a company generates on its equity capital. To understand what drives
a company's ROE, a useful technique is to decompose ROE into its component parts.
(Decomposition of ROE is sometimes referred to as DuPont analysis because it was developed
originally in that company.) Decomposing ROE involves expressing the basic ratio (i.e., net
income divided by average shareholders' equity) as the product of component ratios. Because
each of these component ratios is an indicator of a distinct aspect of a company's performance
that affects ROE, the decomposition allows us to evaluate how these different aspects of
performance affected the company's profitability as measured by ROE. Decomposing ROE is
useful in determining the reasons for changes in ROE over time for a given company and for
differences in ROE for different companies in a given time period. The information gained can
also be used by management to determine which areas they should focus on to improve ROE.
This decomposition will also show why a company's overall profitability, measured by ROE, is a
function of its efficiency, operating profitability, taxes, and use of financial leverage. DuPont
analysis shows the relationship between the various categories of ratios and how they all
influence the return to the investment of the owners.
To separate the effects of taxes and interest, we can further decompose the net profit margin
and write:
𝑹𝑶𝑬 = 𝑻𝒂𝒙𝒃𝒖𝒓𝒅𝒆𝒏 𝒙 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕𝒃𝒖𝒓𝒅𝒆𝒏 𝒙 𝑬𝑩𝑰𝑻 𝒎 𝒂𝒓𝒈 𝒊𝒏 𝒙 𝑨𝒔𝒔𝒆𝒕 𝒕𝒖𝒓𝒏𝒐𝒗𝒆𝒓 𝒙 𝑳𝒆𝒗𝒆𝒓𝒂𝒈𝒆
2021-22
PAT/Equity
Decomposition-ROE
PAT/PBT
PBT/EBIT
EBIT/INCOME
INCOME/ASSETS
ASSETS/EQUITY
Return on Equity
Page | 12
2022-23
1.126%
-1.680%
0.241
0.331
0.554
0.090
2.827
1.126%
-0.905
0.161
0.401
0.103
2.794
-1.680%
Return on Equity:
PAT
Shareholders’ Equity
Net Profit Margin
Return on Assets:
Leverage:
PAT
Total Assets
Total assets
Shareholder’s Equity
Total Asset Turnover
PAT
Income/
Income
Total Assets
Tax Burden:
Interest Burden:
EBIT Margin:
PAT
PBT
EBIT
PBT
EBIT
Income
This decomposition expresses a company's ROE as a function of its tax rate, interest burden,
operating profitability, efficiency, and leverage. An analyst can use this framework to determine
what factors are driving a company's ROE. The decomposition of ROE can also be useful in
forecasting ROE based upon expected efficiency, profitability, financing activities, and tax rates.
The relationship of the individual factors, such as ROA to the overall ROE, can also be expressed
in the form of an ROE tree to study the contribution of each of the five factors, as shown in
below for Lupin Limited.
Page | 13
Exhibit below shows that Gujarat Gas Limited’s ROE of 23.05 % percent in 2021-22 can be
decomposed into ROA of 13.56% and leverage of 1.70. ROA can further be decomposed into a
profit margin of 12.80% and asset turnover of 1.76 times. Net profit margin can be
decomposed into a tax burden of 0.75, an interest burden of 0.97, and an EBIT margin of 0.11
percent. Overall, ROE is decomposed into five components.
ROE = ROA x Leverage
Decomposition of ROE
2021-22
PAT/PBT
PBT/EBIT
EBIT/INCOME
INCOME/ASSETS
ROA
ASSETS/EQUITY
ROE
ROA
2022-23
0.241
0.331
0.554
0.090
0.003985
2.826747
1.126%
Multiply by
leverage
-0.905
0.161
0.401
0.103
-0.006013
2.793859
-1.680%
ROE =Net Margin X Asset Turnover X Leverage
2021-22
1. Net Profit Margin
2. Total Asset Turnover
3. Leverage
Page | 14
2022-23
7.07
0.06
-9.15
0.07
0.4242
-0.6405
DuPont Chart of Adani Ports and SEZ
ROE:2022
Return on Equity
=-1.68 (1.126%)
Return on Assets
=-0.006013 (0.003985)
Net Profit Margin
=-9.15 (7.07)
Tax Burden
PAT/PBT
=-0.905 (0.241)
Leverage
=-0.6405 (0.4242)
Total Asset Turnover
=0.07 (0.06)
Interest Burden
PBT/EBIT
=0.161 (0.331)
EBIT Margin
EBIT/Income
=0.401 (0.554)
The most detailed decomposition of ROE that we have presented is a five-way decomposition.
Nevertheless, an analyst could further decompose individual components of a five-way analysis.
For example, EBIT margin (EBIT /Revenue) could be further decomposed into a non-operating
component (EBIT/Operating income) and an operating component (Operating
income/Revenues). The analyst can also examine which other factors contributed to these five
components. For example, an improvement in efficiency (total asset turnover) may have resulted
from better management of inventory or better collection of receivables. These relationships
suggest the two fundamental ways that the ROI can be improved. First it can be improved by
increasing the profit margin-by earning more profit per rupee of income sales. Second, it can be
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improved by increasing the asset turnover. In turn the asset turnover can be increased in either
of the two ways: (1) by generating more sales volume with the same amount of investment or
(2) by reducing the amount of investment in assets required for a given level of sales volume.
These two factors can be further decomposed into elements that can be looked at individually.
The point of this decomposition is that no one manager can significantly influence the overall ROI
measure, simply because an overall measure reflects the combined effects of a number of
factors. For example the manager who is responsible for the firm’s credit policies and procedures
influences the level of accounts receivable. Thus, the outside analyst, as well as the firm’s
management can use the ROI chart to identify the potential problem areas in the business.
5.0 Liquidity Analysis
Liquidity refers to the company’s ability to meet its current obligations. Thus, liquidity tests focus
on the size of, and relationships between current liabilities and current assets. (Current assets
presumably will be converted into cash in order to pay the current liabilities.) The importance of
adequate liquidity in the sense of the ability of a firm to meet current/short-term obligations
when they become due for payment can hardly be overstressed. In fact, liquidity is a prerequisite
for the very survival of a firm. The short-term creditors of the firm are interested in the shortterm solvency or liquidity of a firm. But illiquidity implies, from the viewpoint of utilization of the
funds of the firm, that funds are idle or they earn very little. A proper balance between the two
contradictory requirements, that is, liquidity and profitability is required for efficient financial
management. The liquidity ratios measure the ability of a firm to meet its short-term obligations
and reflect the short-term financial strength/solvency of a firm. The ratios which indicate the
liquidity of a firm are: (i) Net working capital, (i) Current ratios, (iii) Acid test/quick ratios, (iv)
Turnover ratios.
Let’s look at operating cycle of a firm which indicates the pattern of liquidity and its management
which gets extended from working capital management. Working capital is an operational
necessity. A firm needs to invest in short term current asset such as inventory (raw materials,
work in progress and finished product) and also needs debtors to allow it to perform its day-today operations. This investment in current assets is for the short term, as raw materials will be
bought, converted into finished product and sold to customers who ultimately will pay. For many
businesses this cycle will be completed within a short time frame and will be repeated many
times over during the year; for some other this cycle may become considerably extended.
Liquidity, or solvency, means being able to satisfy financial obligations, without difficulty, as and
when they become due.
A firm is considered technically insolvent if it is unable to settle its debts when they become due
for payment. Liquidity is a measure of how easily or speedily an asset can be converted into cash
without any significant loss of value. In liquidity management the concern is how the business
manages its short-term funds. These are the funds which are continuously circulating through
the business and of which it needs to have a constant flow to keep it running smoothly on a dayto-day basis. By comparison, gearing or capital structure management, is to do with managing
the firm’s long-term funding and solvency.
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Profitability measures focus on assessing the firm’s return, actual or potential, in contrast
liquidity measures focus more on risk assessment. Profitability ratios tell us something about a
firm’s financial performance, what it has actually achieved. Liquidity ratios are indicative of a
firm’s financial condition, the financial state it is in. Like an athlete, performance and condition
are closely related: an athlete in poor physical condition is unlikely to achieve an outstanding
performance. Effective liquidity management is of paramount importance for the survival and
future development of any organization, profit-making or not-for-profit. While profitability is
clearly extremely important for a commercial enterprise, it is more often a lack of liquidity rather
than a lack of profitability which causes a business to fail.
For example, even though a company may be generating profitable sales, it can run into liquidity
problems if credit control is weak and the cash is not being collected from customers and/or if
too much money is tied up in stocks (raw materials, work-in-progress and finished goods.).
In contrast, it is possible for a company to survive – at least in the short-term-and weather
periodic economic storms, even if it is not making profits, by exercising good liquidity
management. This can be done, for example, by managing stocks and debtors’ efficiency and
keeping the levels of both under tight control. Clearly, survival and growth in the longer term
require a combination of good profitability and sound liquidity.
Working Capital
A firm’s total capital is found from its balance sheet by subtracting its total liabilities from its total
assets. This is represented by the balance sheet equation:
Assets(A) – Liabilities(L) = Capital (C)
Working capital can similarly be found by subtracting current liabilities from current assets:
Current assets – Current liabilities = Working capital (CA – CL = WC)
Technically the difference between the current assets and current liabilities is a firm’s net working
capital, or net current assets, assuming current assets exceed current liabilities. However, in
practice, the difference between current assets and current liabilities is often simply referred to
as working capital.
Adani Port and SEZs’ working capital at the end of 2021-22 were:
Column1
Current Assets
Current Liabilities
Working Capital
Page | 17
2022-23
2021-22
6,779.08
6,322.71
456.37
8,793.76
6,813.40
1,980.36
Gujarat Pipavav Port’s working capital at the end of 2022-23 were: (Competitor’s)
Current assets
Current Liabilities
Working Capital
Rs.1052.78 crores
Rs 289.61 crores .
Rs.763.17 crores
Working capital, also known as circulating capital, is the amount of money which a business needs
to survive on a day-to-day basis. It should be sufficient to cover:
1. Paying creditors (without difficulty)
2. Allowing trade credit to debtors;
3. Carrying adequate stocks.
The key questions are: is the level of working capital positive? Is it sufficient in relation to
current liabilities? Sufficient working capital is needed, not only to be able to pay bills on time
(e.g., wages and suppliers) but also to be able to carry sufficient stocks and also to allow
debtors a period of credit to pay what they owe. Working capital is the kind of short-term
capital required to finance a firm on a day-to-day basis. It is a key measure of business liquidity.
The more working capital a firm has, the less risk there is of the firm not being able to pay its
creditors when the bills become due. Conversely the less working capital a firm has, the greater
the risk of the firm not being able to pay its creditors when the bills are due.
Liquidity Aspects
Table-Current Ratio of Adani Ports and SEZ
Overall Current Assets have exhibited consistency. However, a pronounced shift is evident in
Current Liabilities, particularly within Other Current Liabilities. This alteration stems from the
company's strategic practice of retaining client deposits, an approach that not only bolsters
funds but also accrues interest, underscoring the company's astute financial management and
profitability enhancement.
Column1
Current Assets
Current Liabilities
Current Ratio
Page | 18
2022-23
6,779.08
6,322.71
1.07
2021-22
8,793.76
6,813.40
1.29
Table-Current Ratio of Adani Ports and SEZ
In line with the expansion of Current Assets, Quick Assets have shown growth. Notably, despite
the Quick Assets increase, they aren't keeping pace with the rise in Current Liabilities. These
dynamics shift results in the Quick ratio decreasing from 1.28 to 1.06, highlighting potential
liquidity implications.
Column1
Quick Assets
Current Liabilities
Current Ratio
2022-23
2021-22
6,699.97
6,322.71
1.06
8,714.43
6,813.40
1.28
Liquidity Aspects of Adani Ports
Liquidity refers to the company’s ability to meet its current payment obligations. Thus, liquidity
tests focus on the size of, and relationships between current liabilities and current assets.
(Current assets, presumably, will be converted into cash in order to pay the current liabilities.)
The importance of adequate liquidity is the ability of a firm to meet current/short-term
obligations when they become due for payment can hardly be overstressed. In fact, liquidity is
a prerequisite for the very survival of a firm. The short-term creditors of the firm are interested
in the short-term solvency or liquidity of a firm. But illiquidity implies, from the viewpoint of
utilization of the funds of the firm, that funds are idle or they earn very little. A proper balance
between the two contradictory requirements, that is, liquidity and profitability is required for
efficient financial management. Liquidity ratios measure the short-term ability of the company
to pay its maturing obligations and to meet unexpected needs for cash. Short-term creditors
such as bankers and suppliers are particularly interested in assessing liquidity. The ratios we can
use to determine the company’s short-term debt-paying ability are the net working capital,
current ratio, the acid-test ratio. The liquidity ratios measure the ability of a firm to meet its
short-term obligations and reflect the short-term financial strength and solvency of a firm.
Let’s look at operating cycle of a firm which indicates the pattern of liquidity and its
management which gets extended from working capital management. Working capital is an
operational necessity. A firm needs to invest in short term current asset such as inventory (raw
materials, work in progress and finished product) and also needs debtors to allow it to perform
its day-to-day operations. This investment in current assets is for the short term, as raw
materials will be bought, converted into finished product and sold to customers who ultimately
will pay. For many businesses this cycle will be completed within a short time frame and will be
repeated many times over during the year; for some other this cycle may become considerably
extended. Liquidity, or solvency, means being able to satisfy financial obligations, without
difficulty, as and when they become due.
A firm is considered technically insolvent if it is unable to settle its debts when they become
due for payment. Liquidity is a measure of how easily or speedily an asset can be converted into
Page | 19
cash without any significant loss of value. In liquidity management the concern is how the
business manages its short-term funds. These are the funds which are continuously circulating
through the business and of which it needs to have a constant flow to keep it running smoothly
on a day-to-day basis. By comparison, gearing or capital structure management, is to do with
managing the firm’s long-term funding and solvency.
Profitability measures focus on assessing the firm’s return, actual or potential, in contrast
liquidity measures focus more on risk assessment. Profitability ratios tell us something about a
firm’s financial performance, what it has actually achieved. Liquidity ratios are indicative of a
firm’s financial condition, the financial state it is in.
Like an athlete, performance and condition are closely related: an athlete in poor physical
condition is unlikely to achieve an outstanding performance. Effective liquidity management is
of paramount importance for the survival and future development of any organization, profitmaking or not-for-profit. While profitability is clearly extremely important for a commercial
enterprise, it is more often a lack of liquidity rather than a lack of profitability which causes a
business to fail. For example, even though a company may be generating profitable sales, it can
run into liquidity problems if credit control is weak and the cash is not being collected from
customers and/or if too much money is tied up in stocks (raw materials, work-in-progress and
finished goods.).
In contrast, it is possible for a company to survive – at least in the short-term-and weather
periodic economic storms, even if it is not making profits, by exercising good liquidity
management. This can be done, for example, by managing stocks and debtors’ efficiency and
keeping the levels of both under tight control. Clearly, survival and growth in the longer term
require a combination of good profitability and sound liquidity.
Working Capital
Use of current and non-current classifications makes it possible to analyze a company’s
liquidity. Liquidity refers to the ability to pay maturing obligations and meet unexpected needs
for cash. The relationship of current assets to current liabilities is critical in analyzing liquidity.
We can express this relationship as an amount of currency (working capital) and as a ratio (the
current ratio). The excess of current assets over current liabilities is working capital. A firm’s
total capital is found from its balance sheet by subtracting its total liabilities from its total
assets. This is represented by the balance sheet equation:
Assets(A) – Liabilities(L) = Capital (C)
Working capital can similarly be found by subtracting current liabilities from current assets:
Current assets – Current liabilities = Working capital; CA – CL = WC
Technically the difference between the current assets and current liabilities is a firm’s net
working capital, or net current assets, assuming current assets exceed current liabilities.
However, in practice, the difference between current assets and current liabilities is often
simply referred to as working capital.
Page | 20
Table showing working capital of Adani Ports
2018-19
1.Current Assets
2.Current Liabilities
3.Working Capital
4.Quick Assets = Current Assets Inventories
5.Current Ratio (1/2)
6.Quick Ratio (4/2)
2022-23
12,275.15
8,132.30
4,142.85
6,779.08
6,322.71
456.37
11,649.70
6,699.97
1.51
1.43
1.07
1.06
Working capital, also known as circulating capital, is the amount of money which a business
needs to survive on a day-to-day basis. It should be sufficient to cover:
4. Paying creditors (without difficulty)
5. Allowing trade credit to debtors;
6. Carrying adequate stocks.
The key questions are: is the level of working capital positive? Is it sufficient in relation to
current liabilities? Sufficient working capital is needed, not only to be able to pay bills on time
(e.g., wages and suppliers) but also to be able to carry sufficient stocks and also to allow
debtors a period of credit to pay what they owe. Working capital is the kind of short-term
capital required to finance a firm on a day-to-day basis. It is a key measure of business liquidity.
The more working capital a firm has, the less risk there is of the firm not being able to pay its
creditors when the bills become due. Conversely the less working capital a firm has, the greater
the risk of the firm not being able to pay its creditors when the bills are due.
Current ratio
This ratio, also called the working capital ratio1, measures the relationship between current
assets and current liabilities. As current liabilities should technically be paid from current assets,
this ratio highlights the firm’s ability to meet its short-term liabilities from its short-term assets.
In other words, the firm should not have to sell fixed assets to pay suppliers for raw materials: if
it does then it is clearly in trouble. The current ratio will be very important to anyone who is
supplying short-term funds to the firm such as banks and trade creditors. It is usually shown in
the following way:
Current assets: Current liabilities- e.g.,1.20:1.
Adani Port and SEZ’s Current Ratio is: 1.51: 1 2018-19
1.07: 1 2022-23
The current ratio is a fundamental financial metric that assesses a company's short-term
liquidity and ability to meet its immediate obligations using its available current assets. Adani
Ports and Special Economic Zone (APSEZ) has experienced a notable shift in its current ratio
Page | 21
over the years, indicating changes in its financial health and liquidity position.
In the fiscal year 2018-19, APSEZ's current ratio stood at 1.51:1, indicating that the company
had 1.51 units of current assets available for every unit of current liabilities. This suggests a
relatively robust liquidity position, where the company was well-equipped to cover its shortterm financial obligations. A higher current ratio generally reflects a healthier ability to meet
immediate financial demands.
However, in the fiscal year 2022-23, APSEZ's current ratio decreased to 1.07:1. This decline
indicates that the company's short-term liquidity had weakened, with 1.07 units of current
assets available for every unit of current liabilities. A lower current ratio can potentially signal
challenges in managing short-term financial commitments, such as paying off debts and
meeting operational expenses.
In conclusion, the shift in Adani Ports and SEZ's current ratio from 1.51:1 in 2018-19 to 1.07:1 in
2022-23 signifies changes in the company's liquidity profile. The management's proactive
response to this trend will be crucial to maintaining a stable financial position and addressing
potential liquidity challenges effectively.
Quick Ratio or Acid Test ratio
This is a more stringent test of liquidity than the current ratio. It is ‘the acid test’ of liquidity
and compares the firm’s quick assets (i.e., current assets less stocks) to its current liabilities. By
stripping the stock figures out of the equation, it is suggested that this ratio gives a more
immediate indication of the firm’s ability to settle its current debts. The acid test ratio is shown
in a similar manner to the current ratio: Quick assets1 : current liabilities. The Quick Ratio (acid
test ratio) for Adani Ports is: 1.06.
The rationale for omitting stock figures in manufacturing firm is that they are generally
considered to be the current assets which take longest to convert into cash. Stocks (raw
materials, work-in-progress and finished goods) are needed to produce saleable products,
which in turn are billed to customers, the customers then usually take a period of credit to pay.
This conversion process – of turning stocks into cash – especially for a manufacturing concern
can sometimes be very protracted. Sometimes the use of different inventory valuation methods
can distort comparison of the current ratio. Again, it is difficult to give a norm for what this
ratio should be, but a 1:1 ratio is commonly considered desirable: it depends on the
characteristics and circumstances of the individual firm. However, the quality of current asset
also needs to be examined while commenting on the current assets. Sometimes in the
companies balance sheet one observes huge amount of loans and advances. These loans
advances in a shorter time span can not be converted to liquidity. This has to be kept in mind
while assessing the liquidity of any company.
Page | 22
6.0 Asset Growth
Growth in the asset indicates that the company is making a planned effort to ensure
future revenue earning capacity as well as targeting higher profitability. Expansion or
addition of fixed assets indicates future production capacity there by signals
sustainable top line growth. In case of addition of balancing equipment it will
indicate the company is trying to achieve competitiveness by managing its cost
structure and there by enhance its bottom line. Addition to the current asset
indicates inventory and debtors build up in a systematic manner to strengthen cash
to cash cycle and making the operating cycle move faster, trying to ensure top line
growth for the current period. However, there are cases where current asset is
growing by default - that is the company is not able to push its inventory in the
market neither it is able to realize its debtors at a faster rate.
Growth in different type of Assets
ASSETS
NON-CURRENT ASSETS
Tangible Assets
2022-23
2019-20
10,078.69
8,985.37
Intangible Assets
111.04
88.85
Capital Work-In-Progress
637.71
774.77
Fixed Assets
10,827.44
9,848.99
Non-Current Investments
44,810.74
13,455.48
Deferred Tax Assets [Net]
1,280.05
804.66
10,200.06
8,116.87
Other Non-Current Assets
5,828.64
2,923.27
Total Non-Current Assets
72,946.93
35,149.27
Current Investments
1,161.98
501.11
Inventories
Trade Receivables
79.11
1,274.14
625.45
1,910.06
Cash And Cash Equivalents
2,030.17
3,869.48
693.52
3,056.98
OtherCurrentAssets
1,540.16
2,312.07
Total Current Assets
6,779.08
12,275.15
79,726.01
47,424.42
Long Term Loans And Advances
CURRENT ASSETS
Short Term Loans And Advances
Total Assets
Page | 23
In the Table above we see changes in the value of assets over the period 2022-23 compared to
2019-20. During these four years total assets have increased to Rs 79,726.01 crores in 2022-23
compared to Rs 47424.42 in 2019-20.
The escalation in Capital Work in Progress underlines the company's ongoing investments in
developmental projects, reflecting its dedication to broadening operational capabilities and
enhancing infrastructure.
The uptick in Property, Plant, and Equipment indicates strategic allocations to tangible assets
that facilitate business operations. This might signify initiatives to boost efficiency, upgrade
technology, or expand facilities.
Furthermore, it's noteworthy that the increase in Other Current Assets encompasses a VAT
credit refund. Although not directly tied to operations, this inclusion emphasizes the company's
adept financial management. Pursuing refunds for overpaid taxes through VAT credit signifies a
clear focus on optimizing cash inflow.
Current Assets: Some observation: Upon analysis, a prominent trend emerges in the Current
Assets surge, predominantly attributed to the amplified Trade Receivables and Other Current
Assets, wherein VAT Credit Refundable holds significance. This infers that a substantial share of
the increase is linked to VAT credit, suggesting a non-operational origin. Moreover, the
elevation in Trade Receivables indicates extended credit terms extended to customers,
subsequently contributing to an escalation in Days of Sales Blocked in Sales Receivables.
7.0 Asset Utilization or Turn Over Ratio’s
Asset utilization ratios indicate how efficiently assets have been used to generate revenues and
thereby profits and is concerned with measuring the efficiency in asset management. These
ratios are also called efficiency ratios or turnover ratios or asset utilization ratios. The efficiency
or productivity measures outputs of a system in relation to inputs; the greater the volume
outputs produced from a given level of inputs the more efficient the system and the company.
This also reflects the speed with which the assets are used to convert into sales. The greater is
the rate of turnover or conversion, the more efficient is the utilization/management, other
things being equal. For this reason, such ratios are also designated as turnover ratios. Turnover
is the primary mode for measuring the extent of efficient employment of assets by relating the
assets to sales or similar variables. An activity ratio may, therefore, be defined as a test of the
relationship between sales (more appropriately with cost of sales) and the various assets of a
firm. Depending upon the various types of assets, there are various types of activity ratios.
Page | 24
Revenue from Operations
Cost of Sales
Inventory
Receivable
Account Payable
Inventory Turnover Ratio
Recievable Turnover Ratio
Payable Turnover Ratio
Days Sales Revenue Blocked in Inventory
Days Sales Revenue Blocked in Receivables
Days Cost of Sales Revenue Blocked in Payable
Net Operating Cycle
Cost of Sales/Inventory
2018-19
2022-23
5,336.38
5,237.15
1,997.69
4,323.53
625.45
79.11
1,910.06
1,274.14
194.32
578.79
5.67
12.27
3.35
3.29
5.17
14.94
64.37
29.74
108.90
110.96
70.63
24.43
102.63
116.27
3.194004
54.65213
Note: Cost of Sales has been calculated by subtracting Depreciation and Finance Cost from Total
Expenses. (Total Expenses- Depreciation- Finance Cost)
The Inventory Turnover Ratio is a pivotal indicator of how effectively a company manages its
inventory. The first year's ratio of 5.67 suggests that the inventory turned over approximately
5.67 times during the year, indicating moderate efficiency in inventory management. However,
the substantial increase to 12.27 in the second year underscores a marked enhancement in
inventory turnover efficiency. This could be attributed to improved demand forecasting,
inventory control measures, or shifts in market demand.
The Receivable Turnover Ratio provides insights into the company's credit and collection
practices. The minor decrease from 3.35 to 3.29 in the second year suggests a relatively
consistent pace of collecting outstanding payments. This stability implies that the company has
maintained its credit policies and customer relationships, ensuring steady cash flow from sales.
The Payable Turnover Ratio reveals the company's payment efficiency to suppliers. The ratio's
jump from 5.17 in the first year to 14.94 in the second year signifies an impressive shift. This
alteration might stem from renegotiated payment terms with suppliers, efficient cash
management, or streamlined procurement processes.
The Days Sales Revenue Blocked in Inventory and Days Sales Revenue Blocked in Receivables
offer an in-depth look at the company's cash conversion cycle. The reduction in both metrics in
the second year indicates quicker conversion of inventory and receivables into cash. This
acceleration is beneficial for improving liquidity and optimizing working capital management.
The Days Cost of Sales Revenue Blocked in Payable shows the time taken by the company to
pay its suppliers. The significant decrease from 70.63 to 24.43 in the second year signifies a
substantial improvement in managing trade credit and supplier relationships.
Page | 25
The Net Operating Cycle combines inventory turnover and receivables turnover, reflecting the
time required for a product's journey from inventory to cash collected from customers. The
decrease in the second year (from 102.63 to 116.27) demonstrates a tighter and more efficient
operating cycle, contributing to enhanced working capital management.
Lastly, the Cost of Sales/Inventory ratio's notable surge in the second year could signal
alterations in the company's cost structure or potential data anomalies that warrant further
investigation.
In summation, these ratios collectively portray a company that is making strides in operational
efficiency and effective resource management. The increased inventory turnover, reduced days
blocked in inventory and receivables, improved payable turnover, and more streamlined
operating cycle all indicate an organization focused on enhancing its financial health and
optimizing its business processes.
8.0 Capital Structure Analysis
Capital Structure Analysis indicates about solvency of any company. Solvency pertains to the
company’s ability to meet the interest costs and the repayment schedules associated with its
long-term obligations. When a company borrows money, it promises to make a series of fixed
payments. Because the shareholders get only what is left over after the debt holders have been
paid, debt is said to create financial leverage. Capital Structure Ratio’s measures these leverage.
From the company’s standpoint the greater the proportion of its invested capital that is
obtained from shareholders, the less worry the company has in meeting its fixed obligations.
But in return for this lessened worry, the company must expect to pay overall cost of obtaining
capital. Conversely, the more funds that are obtained from debenture or bonds, overall cost of
capital becomes relatively low for the company. For a growing, tax paying company higher debt
ensures better return for shareholders.
A cursory look at the liabilities side of the Balance Sheet of a Company shows the leverage
position of a company. In scrutinizing Gujarat Gas Limited's capital structure evolution from
2018-19 to 2021-22, a significant transformation is evident, highlighting substantial financial
growth. The total Equity and Liabilities surged from Rs. 7157.53 crore to RS. 9587.33 crore,
depicting a remarkable trajectory.
Examining Shareholders' Funds, a steady Share Capital at Rs. 137.68 crore contrasts with an
impressive surge in Other Equity, soaring from Rs. 2067.59 crore to Rs. 5492.25 crore. This
augmentation reflects strategic efforts to fortify equity, bolstering financial stability.
Within Non-Current Liabilities, a notable decrease from Rs. 3275.31 crore to Rs.1446.63 crore
stems primarily from substantial reduction in Long-term Borrowings, falling from Rs. 2089.15
crore to Rs. 390.97 crore. This prudent maneuver emphasizes risk mitigation and interest
obligations reduction. The addition of Short-term Borrowings in Current Liabilities, rising from
Page | 26
zero to Rs. 90.1 crore, signifies a balanced financing approach.
Table: Capital Structure of Adani Ports and SEZ
Equity & Liabilities
Shareholders Funds
31-03-2022
31-03-2023
26,531.08
28,661.89
Equity Share Cap
422.47
432.03
Preference Share Cap
115.35
125.73
Non Current Liabilities
41,159.57
44,574.88
Borrowings
41,154.10
44,563.30
Currrent Liabilities
6,813.40
6,322.71
Borrowings
3,939.87
3,203.73
74,670.58
79,726.01
Total
The relative amount of a company’s capital that is obtained from various sources is a matter of
great importance in analyzing the soundness of the company’s financial position. In illustrating
the ratio’s intended for this purpose, the following summary of the liabilities and owners’
equity side of the balance sheet will be used. Attention needed to be focused on the sources of
invested capital (also called permanent capital: debt capital (loan funds) and equity capital
(shareholders fund). From the point of view of the company, debt capital is risky because if the
bond and debenture holders and other creditors are not paid promptly, they can take legal
action to obtain payment.
In any financial analysis it is important to analyze the contributions of shareholders and lenders
in providing funds in the company’s capital structure. When the fund is provided by the lenders,
they expect stability in the operation of the firm a constant revenue growth so that they are
paid their due interest (serviced) at regular interval and the company generates adequate
surplus after payment of dividend to the shareholders, so that principal amount of the loan
could be paid to lenders. Shareholders interest is to see that major part of the operations are
carried out by means of borrowing so that from the surplus they are paid high amount of
dividend. So, interest of both the fund providers in a company are divergent. Shareholders
would like to pump minimum money but would like to derive maximum benefit, lenders would
like to provide higher volume lending if they are convinced about good track record of the
company and is assured of stable interest payment. Hence companies are in dilemma how to
finance its capital structure – by raising more of loan funds or more of owned funds? When a
company borrows more of loan funds than its shareholders funds, we say the company is
leveraged – when borrowing by the company is much more than share capital – it is termed as
highly leveraged company. More of loan funds create higher interest burden for a company;
more of owned funds builds expectations among shareholders for more of dividend and higher
and higher capital appreciation. This dilemma needed to be resolved by the company when
they structure their capital.
Page | 27
One can calculate a few types of ratios to measure financial leverage of a company and the
simplest would-be Debt Equity Ratio given by total debt to total long term capital i.e., Equity.
Equity comprises Share Capital plus Other Income plus any unsettled money received from
shareholder’s account. Borrowing or debt comprises of capital which is deployed in the
company which carries a rate of interest. The debt equity ratio is an important tool to appraise
the financial structure of a firm. It has important implications from the view point of lenders,
owners and the firm itself. When considering Adani Ports and SEZ the following categories
would be taken into account to determine the accurate equity or net worth.
Because the shareholders have less certainty receiving dividends than the debenture
/bondholders have receiving interest, investors usually are unwilling to invest in company’s
share unless they see a possibility of making a higher return (dividends higher than the interest
rate plus share price appreciation) than they could obtain as bond holders. So, we have
presumed possible interest carrying sources of fund to find out the serviceable debt burden
from other liabilities like provisions etc. Hence, we have taken short term and long-term debt
as component of debt or borrowing, rest of other items in the liabilities are not of the nature of
borrowing, hence do not have any interest burden.
Since, Adani Ports is a capital intensive company, therefore, it’s debt to equity ratio will be high
stating that most of it’s assets are funded through debt. Such a ratio is adequate for a capital
intensive company.
Capital Structure Ratio
Column1
Total Equity
LT Borrowings
ST Borrowings
Interest
EBIT
Debt/Equity
Analysis for D/E
Interest Coverage(Times)
31-03-2022
31-03-2023
26,531.08
28,661.89
41,154.10
44,563.30
3,939.87
3,203.73
2,493.66
2,769.50
3,727.22
3,299.43
1.69967
1.66657
High
High
0.66904
0.83939
Too high and too low debt-equity ratio is not desirable. High debt equity led to inflexibility in
the operations of the firm as it would face the pressures of lenders to meet its fixed
commitment of interest servicing. So, the firm has to sustain ever increasing top-line growth to
service the debt. A low debt equity ratio does not help the equity investors to maximize their
return. Hence striking a balance between debt and equity is desirable. There is no rule
regarding this balance between debt and equity, however very often a 2:1 debt equity is
quoted as rule of thumb in India though a large number of companies may not maintain that.
Since there is not much of details of lease one can safely ignore value of lease. However, while
calculating debt/equity Ratio one must adjust equity to debit balances of profit and loss
account (appearing on the asset side of the balance sheet). If any revaluation reserve is
appearing under the head of reserves and surplus it is to be deducted from the shareholders
fund to arrive at the right equity.
Page | 28
Interest Coverage Ratio: This ratio is examined by the lenders to assess whether the borrowing
firm is having enough earnings to meet the interest payment obligation. This can be done by
comparing how much is the EBIT vis-a-vis interest payment obligation in a period. We find in
the Table in Adani’s Interest coverage ratio has increased in 2021-22 to 31.37 times compared
to 2018-19.
Interest Coverage Ratio
Column1
EBIT
Interest Payment During the Period
Interest Coverage Ratio
31-03- 31-032019 2023
5,207.38
3,299.43
1,421.84
2,769.50
0.27
0.84
The Interest Coverage Ratio is a fundamental financial metric that assesses a company's ability
to meet its interest payments using its operating earnings. A low ratio indicates potential
financial vulnerability, while a higher ratio implies better capacity to handle debt-related
obligations. In this context, comparing the Interest Coverage Ratios for the financial years
ending on March 31, 2019, and March 31, 2023, offers insights into the company's evolving
financial health.
In 2019, the Interest Coverage Ratio was at a concerning 0.27. This suggests that the company's
earnings before interest and taxes (EBIT) were only able to cover about 27% of its interest
payments during that year. Such a low ratio points to a significant gap between the company's
operational earnings and its financial obligations in the form of interest payments. A ratio
below 1 is a clear indicator that the company was struggling to generate sufficient profits to
cover its interest costs.
By 2023, the Interest Coverage Ratio had improved to 0.84. While still below the ideal level of 1
or higher, this improvement indicates a positive trend. The company's EBIT grew, allowing it to
cover 84% of its interest payments during the year. Although the ratio is higher than in 2019, it
still raises concerns about the company's financial health and its ability to comfortably manage
its debt load.
The increase in the Interest Coverage Ratio from 0.27 to 0.84 is an indication that the company
has made some progress in generating more earnings relative to its interest payments.
However, the fact that the ratio remains below 1 underscores the ongoing challenges the
company faces in terms of generating adequate profits to service its debt-related
commitments.
In conclusion, the improvement in the Interest Coverage Ratio signifies an attempt to address
the issue of insufficient earnings to cover interest payments. However, the ratio's levels in both
years indicate that the company should continue its efforts to enhance profitability and better
manage its debt obligations to achieve a more robust financial position.
Page | 29
9.0 Funds Flow Management
Companies mobilize funds during the year to create assets, to finance operations and to retire
obligations. Sources of funds are from operation, raising of equity, debt or disposal of assets. It
is possible to have an understanding and command on how the companies have mobilize
resources and deployed them during a period of year. Below we have prepared sources and
utilization of funds statement for Adani Port and SEZ.
In the Table we have shown changes in the assets and liabilities position between the period of
five years (2018-19 to 2022-23).
In the examined timeframe, Adani Port and SEZ's strategic capital infusion into Property, Plant,
and Equipment, alongside advancements in Capital Work in Progress, underscores a
commitment to fortifying operational capacities. Concurrently, a prudent reduction in NonCurrent Liabilities, accompanied by an emphasis on equity reinforcement, signifies adept debt
management and fortified financial underpinnings. The diversified allocation toward Financial
Assets reflects a judicious investment orientation. Collectively, these actions portray a nuanced
strategy that harmonizes operational expansion, financial robustness, and value maximization.
Changes in assets and liabilites position in 2022-2023 (rs in crores)
ASSETS
Change in
2023
%change
Tangible Assets
169.03
Intangible Assets
-17.97
Capital Work-InProgress
23.63
Non-Current
Investments
Deferred Tax
Assets [Net]
Long Term Loans
And Advances
Other Non-Current
Assets
Page | 30
Change in
2023
%change
SHAREHOLDER'S
FUNDS
NON-CURRENT ASSETS
Fixed Assets
LIABILITIES
174.69
8,439.04
924.41
Equity Share
Capital
Preference Share
-13.93%
Capital
1.71%
3.85% Total Share Capital
9.56
2.26%
10.38
9.00%
19.94
3.71%
Reserves and
Surplus
Total Reserves and
23.20%
Surplus
Total Shareholders
259.93%
Funds
2110.87
8.12%
2110.87
8.12%
2130.81
8.03%
0.00%
1.64%
-1,794.35
-14.96%
Hybrid/Debt/Other
Securities
0.00
-673.68
-10.36%
NON-CURRENT
LIABILITIES
0.00
Total Non-Current
Assets
7,070.11
CURRENT ASSETS
Current
Investments
Inventories
Trade Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
OtherCurrentAsset
s
Total Current
Assets
Total Assets
1,161.98
-0.22
192.01
-4,181.33
345.26
467.62
-2,014.68
5,055.43
Long Term
Borrowings
Other Long Term
Liabilities
Long Term
Provisions
Total Non-Current
-0.28%
Liabilities
CURRENT
17.74%
LIABILITIES
Short Term
-67.32%
Borrowings
10.73%
99.14% Trade Payables
Other Current
Liabilities
Short Term
-22.91%
Provisions
Total Current
Liabilities
Total Capital And
6.77%
Liabilities
43.60%
3424.67
8.45%
-15.47
-2.41%
6.11
111.70%
3415.31
8.30%
0.00
-736.14
-18.68%
267.78
86.10%
-24.70
-0.97%
2.37
12.10%
-490.69
-7.20%
5055.43
6.77%
The analysis of the company's assets and liabilities from 2022 to 2023 reveals significant shifts
in its financial structure. Notably, non-current assets increased by 10.73%, primarily driven by a
remarkable 23.20% growth in non-current investments and a substantial 259.93% surge in
deferred tax assets. On the liabilities side, shareholder's funds saw an 8.03% rise, mainly due to
an increase in reserves and surplus, reflecting the company's strong financial position.
In terms of current assets, a decline of -22.91% occurred, with a noteworthy 99.14% increase in
current investments contrasting with a -67.32% decrease in cash and cash equivalents. This
might indicate a shift towards short-term investment strategies and potential allocation
changes.
Among liabilities, non-current liabilities grew by 8.30%, driven by an 8.45% rise in long-term
borrowings. Meanwhile, current liabilities decreased by -7.20%, influenced by reduced shortterm borrowings and increased trade payables, potentially showcasing enhanced financial
management.
Overall, these changes reflect a strategic approach, emphasizing investment growth, debt
Page | 31
management, and efficient capital utilization. The company's efforts to balance long-term
stability with short-term liquidity are evident, and its decisions seem aligned with fostering
financial strength and operational effectiveness.
Strategic Capital Deployment: The noteworthy augmentation in Property, Plant, and
Equipment (PPE) and Capital Work in Progress (CWIP) signifies a deliberate strategic intent to
bolster operational capabilities. This strategic emphasis is in line with anticipated market
expansion and a proactive stance to enhance competitive resilience.
Prudent Financial Management: The discernible reduction in Non-Current Liabilities,
particularly the trimming of Financial Liabilities, underscores a conscientious endeavor to
manage and alleviate debt commitments. This judicious fiscal strategy contributes to fortified
financial stability, concurrently optimizing resource allocation.
Balanced Investment Strategy: The allocation of resources into Financial Assets, encompassing
investments and loans, illustrates a well-rounded approach towards diversifying revenue
streams. This tactical diversification showcases a willingness to tap alternate avenues for yield
generation beyond core business operations.
Operational Growth and Working Capital Focus: The elevation in Current Liabilities and Trade
Receivables denotes an uptick in business activity and sales traction. This echoes operational
expansion aspirations. It is imperative to judiciously manage working capital to ensure liquidity
equilibrium and mitigate operational uncertainties.
Equity Fortification: The elevation in Shareholders' Funds, particularly in the domain of Other
Equity, signals a concerted drive to consolidate the equity foundation. This strategic move
elevates financial robustness and engenders investor confidence, potentially fostering capital
infusion for future growth pursuits.
Strategic Asset Utilization: The reduction in Cash and Bank Balances implies tactical asset
deployment, potentially in investments, debt reduction, or capital expenditures. This points to
an astute drive to optimize resource deployment, maximizing long-term value creation.
10.0 Cash Flow Statement
The statement of cash flows reports the cash receipts, cash payments, and net change in cash
resulting from operating, investing and financing activities during a period. The information in a
statement of cash flows helps investors, creditors, and others assess:
(1) The entity’s ability to generate future cash flows.
(2) The entity’s ability to pay dividends and meet obligations.
(3) The reasons for the difference between net income and net cash provided (used) by
operating activities.
(4) The cash investing and financing transactions during the period.
A primary objective in preparing profit and loss account is to obtain a measure of operating
performance that matches economic resources used, or consumed, as expenses, with the
associated economic resources earned as revenues. When the accountant cannot directly
Page | 32
match economic resources earned and consumed, accrual accounting matches the economic
resources consumed with the period in which they are consumed.
The accrual basis of accounting ignores the timing of cash receipts when recognizing revenues
and gains and the timing of cash expenditures when recognizing expenses and losses. However,
cash is a necessary ingredient for operating, investing, and financing activities. This fact means
that firms must provide another financial statement that reports the flows of cash in and out of
a firm: the statement of cash flows.
The category of operating activities is the most important. It shows the cash provided by
company operations. This source of cash is generally considered to be the best measure of a
company’s ability to generate sufficient cash to continue as a going concern.
We need to appreciate some general guidelines:
Operating activities involve profit and loss account items;
Investing activities involve cash flows resulting from changes in investments and long-term
asset items; (3) Financing activities involve cash flows resulting from changes in long term
liability and shareholders’ equity. Some cash flows related to investing or financing activities are
classified as operating activities Like receipts of investment revenue (interest and dividends) are
classified as operating activities. Equally payments of interest to lenders to lenders are also
considered as operating activities? Because these items are reported in income statement,
where results of operations are shown.
Classification of flows of Cash in a firm
From Operating Activities
They are
Principal Revenue producing
activities
Activities which cannot be
classified as investing or
financing activities
Hence, residuary activities
are also operating activities
Page | 33
From Investing Activities
They are
Purchase and sale of longterm assets and other
investments which are not
cash equivalents; and
Income
received
from
investments
From Financing Activities
They are
The activities which change the
size and composition of
contributed
equity (i.e., owner’s capital) and
Borrowings and
repayments of
borrowings.
Payments of dividends
Financing – on equity,
preference shares and any
other kind.
Cash Flow
Net Profit
Before Tax
Net Cash From
Operating Activities
Net Cash (used
in)/from
------------------- in
Rs. Cr. -----------------Mar '23
-1028.23
Mar '22
621.73
Mar '21
Mar '20
Mar '19
2909.64
2031.73
3663.64
2714.03
3012.05
3041.8
3169.95
3214.41
-4024.98
-8803.19
-7966.6
-31.35
-2403.12
-3451.65
7308.44
3827.15
-2580.74
2555.24
-4762.6
1517.3
-1097.65
557.86
3366.53
4828.04
3310.74
4408.39
3850.53
484
65.44
4828.04
3310.74
4408.39
3850.53
Investing Activities
Net Cash (used
in)/from Financing
Activities
Net
(decrease)/increase In
Cash and Cash
Equivalents
Opening Cash & Cash
Equivalents
Closing Cash & Cash
Equivalents
The cash flow analysis of Adani Ports and Special Economic Zone (SEZ) reveals important
insights into the company's financial performance and how it managed its cash resources
during the specified period.
The Net Profit Before Tax for the fiscal year ending in March 2023 was -Rs. 1028.23 crore,
indicating that the company incurred a loss before tax during this period. This contrasts
significantly with the positive net profit of Rs. 3663.64 crore reported in March 2019.
The Net Cash From Operating Activities in March 2023 amounted to Rs. 2714.03 crore,
showing a healthy inflow of cash from core operational activities. This is slightly lower than the
net cash from operating activities in March 2019, which stood at Rs. 3214.41 crore.
In terms of Investing Activities, the company had a net cash outflow of Rs. -4024.98 crore in
Page | 34
2023, indicating substantial investments in various assets. The Net Cash (used in)/from
Financing Activities was -Rs. 3451.65 crore, reflecting significant financial outflows related to
financing activities.
The Net (decrease)/increase In Cash and Cash Equivalents was -Rs. 4762.6 crore in 2023,
signifying a significant reduction in cash resources. This contrasts with the increase in cash and
cash equivalents of Rs. 3366.53 crore reported in March 2019.
The company's Opening Cash & Cash Equivalents in March 2023 was Rs. 4828.04 crore, and the
Closing Cash & Cash Equivalents at the end of the period were Rs. 65.44 crore, indicating a
substantial decrease in cash reserves.
Overall, the analysis suggests that Adani Ports and SEZ faced challenges during this period, as
indicated by the negative net profit before tax and the significant decrease in cash and cash
equivalents. The company's cash flow from operating activities remained relatively stable, while
investing and financing activities led to substantial cash outflows. The company's ability to
generate and manage cash resources would be a crucial aspect to monitor for its future
financial health and sustainability.
11.0 Segment Result
Revenue:
 Consolidated revenue grew by 22% to H20,852 crore on the back of well-rounded
growth registered by three key business segments - port, logistics and SEZ.
 Cargo volume growth, improved realization, and addition of OSL and Haifa port,
enabled port revenue increase of 22% to H17,304 crore.
 Revenue from the logistics business stood at H1,744 crore, a growth of 44% on account
of acquisition of Tumb ICD, induction of new rakes in GPWIS and addition in
warehousing capacity.
EBITDA
 Consolidated EBITDA grew by 21% to H12,833 crore on the back of a 22% growth in
revenue.
 Port EBITDA grew 21% to H12,039 crore on the back of growth in port revenues.
 Logistics business EBIDTA grew by 52% to H487 crore on account of acquisition of
Tumb ICD, induction of new rakes in GPWIS and addition in warehousing capacity.
Balance Sheet and cash flow
 FY23 net debt-to-EBIDTA stood at 3.1x, within the guided range of 3.0-3.5x.
 Free cash flow from operations after adjusting working capital changes, capex
Page | 35
and net interest cost was H1,416 crore compared to H6,554 crore in FY22. This
was mainly due to capex increasing by H5,311 crore in FY23.
12.0 Market Perception
How a company’s performance is viewed by investors is reflected in its (actual and potential)
market price of share. How a company has done is reflected in its earnings per share.
2022-23
PAT
2018-19
-479.43
2,637.72
216.01
207.09
Book Value per share
132.1
98.15
Basic EPS (Rs.)
-2.22
12.74
No. of Shares
Earnings Per Share (EPS) Analysis:
Earnings Per Share (EPS) is a fundamental financial metric that indicates the profitability of a
company on a per-share basis. It's a vital measure for both investors and analysts, providing
insights into a company's financial health and its ability to generate earnings for its
shareholders.
In the financial year 2022-23, the company reported a Basic EPS of -Rs. 2.22, indicating a loss
per share. This implies that the company's net earnings were negative, which might be
attributed to various factors such as increased expenses, decreased revenue, or exceptional
items. In contrast, in 2018-19, the Basic EPS was Rs. 12.74, reflecting positive net earnings per
share.
The decline in EPS from a positive value to a negative value indicates a significant downturn in
the company's profitability between the two years. This could be attributed to adverse market
conditions, operational challenges, or extraordinary events impacting the company's financial
performance.
Book Value Per Share Analysis:
Book Value Per Share is another crucial financial metric that reveals the value of a company's
assets after deducting its liabilities, divided by the number of outstanding shares. It's a measure
of the theoretical worth of a company's assets that would be distributed to shareholders if the
company were to be liquidated.
Page | 36
In 2022-23, the Book Value Per Share was Rs. 132.1, showcasing an increase from Rs. 98.15 in
2018-19. This implies that the company's net assets have increased over time. A rising Book
Value Per Share generally indicates growth in the company's equity base, which can stem from
retained earnings or capital infusions.
The growth in Book Value Per Share despite the negative EPS could be due to factors like the
issuance of additional shares or accumulation of retained earnings over time. It's important to
note that while a higher Book Value Per Share can indicate a solid foundation, it doesn't
necessarily reflect the current market value of the company's shares.
In conclusion, the negative EPS in 2022-23 suggests a decline in profitability, while the higher
Book Value Per Share indicates growth in the company's equity. The analysis of these metrics
together provides a comprehensive view of the company's financial performance and its impact
on shareholders' value.
Page | 37
13.0 Annexure
------------------ in Rs. Cr.
-----------------Mar 23
Mar-22
Mar-21
Mar-20
Mar-19
12 mths
12 mths
12 mths
12 mths
12 mths
Revenue From Operations [Gross]
5,159.88
4,146.80
4,304.44
4,448.58
5,147.58
Revenue From Operations [Net]
5,159.88
4,146.80
4,304.44
4,448.58
5,147.58
Other Operating Revenues
77.27
59.42
72.71
194.7
188.8
Total Operating Revenues
5,237.15
4,206.22
4,377.15
4,643.28
5,336.38
Other Income
2,998.79
2,519.31
2,266.31
2,902.97
2,342.90
Total Revenue
8,235.94
6,725.53
6,643.46
7,546.25
7,679.28
1,119.91
831.27
919.47
1,067.44
995.87
294.7
238.34
235.01
224.61
230.89
2,769.50
2,493.66
2,326.85
1,751.88
1,421.84
612.98
599.61
619.18
553.29
474.21
Other Expenses
2,908.92
1,329.09
-366.69
1,917.30
770.93
Total Expenses
7,706.01
5,491.97
3,733.82
5,514.52
3,893.74
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
Standalone Profit & Loss account
INCOME
EXPENSES
Operating And Direct Expenses
Employee Benefit Expenses
Finance Costs
Depreciation And Amortisation
Expenses
Page | 38
12 mths
12 mths
12 mths
12 mths
12 mths
529.93
1,233.56
2,909.64
2,031.73
3,785.54
Exceptional Items
-1,558.16
-611.83
0
0
-121.9
Profit/Loss Before Tax
Tax Expenses-Continued Operations
Current Tax
Deferred Tax
-1,028.23
621.73
2,909.64
2,031.73
3,663.64
46.12
-594.92
287.68
36.49
948.74
32.97
367.25
-269.77
779.57
246.35
-548.8
324.17
981.71
97.48
1,025.92
Profit/Loss After Tax And Before
ExtraOrdinary Items
-479.43
297.56
1,927.93
1,934.25
2,637.72
Profit/Loss From Continuing
Operations
-479.43
297.56
1,927.93
1,934.25
2,637.72
Profit/Loss For The Period
-479.43
297.56
1,927.93
1,934.25
2,637.72
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
12 mths
12 mths
12 mths
12 mths
12 mths
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.)
-2.22
Diluted EPS (Rs.)
-2.22
VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS
1.41
1.41
9.49
9.49
9.43
9.43
12.74
12.74
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax
Total Tax Expenses
STORES, SPARES AND LOOSE TOOLS
Page | 39
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend
Tax On Dividend
Equity Dividend Rate (%)
Standalone Balance Sheet
1,080.07
1,020.88
0
691.58
414.19
0
0
0
0
167.33
250
250
250
160
10
------------------ in Rs. Cr. -----------------Mar 23
Mar-22
Mar-21
Mar-20
Mar-19
12 mths
12 mths
12 mths
12 mths
12 mths
Equity Share Capital
432.03
422.47
406.35
406.35
414.19
Preference Share Capital
125.73
115.35
105.83
97.09
99.94
Total Share Capital
557.76
537.82
512.18
503.44
514.13
Reserves and Surplus
28,104.13
25,993.26
21,228.40
19,292.29
19,911.60
Total Reserves and Surplus
28,104.13
25,993.26
21,228.40
19,292.29
19,911.60
Total Shareholders Funds
28,661.89
26,531.08
21,740.58
19,795.73
20,425.73
166.53
166.53
166.53
166.53
165.88
43,935.97
40,511.30
30,844.29
24,540.66
17,982.19
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Hybrid/Debt/Other Securities
NON-CURRENT LIABILITIES
Long Term Borrowings
Page | 40
Other Long Term Liabilities
627.33
642.8
723.74
761.92
718.32
11.58
5.47
2.4
0
0
44,574.88
41,159.57
31,570.43
25,302.58
18,700.51
3,203.73
3,939.87
1,733.40
2,202.12
6,208.81
578.79
311.01
216.69
217.65
194.32
2,518.24
2,542.94
3,114.16
4,083.54
1,684.95
21.95
19.58
16.54
44.49
44.22
6,322.71
6,813.40
5,080.79
6,547.80
8,132.30
79,726.01
74,670.58
58,558.33
51,812.64
47,424.42
10,078.69
9,909.66
10,210.00
10,500.30
8,985.37
Intangible Assets
111.04
129.01
72.27
82.46
88.85
Capital Work-In-Progress
637.71
614.08
590.23
675.36
774.77
Fixed Assets
10,827.44
10,652.75
10,872.50
11,258.12
9,848.99
Non-Current Investments
44,810.74
36,371.70
20,768.88
15,603.89
13,455.48
Deferred Tax Assets [Net]
1,280.05
355.64
483.23
954.39
804.66
10,200.06
11,994.41
14,666.23
10,094.50
8,116.87
Long Term Provisions
Total Non-Current Liabilities
CURRENT LIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
Total Current Liabilities
Total Capital And Liabilities
ASSETS
NON-CURRENT ASSETS
Tangible Assets
Long Term Loans And Advances
Page | 41
Other Non-Current Assets
5,828.64
6,502.32
3,819.53
3,483.60
2,923.27
Total Non-Current Assets
72,946.93
65,876.82
50,610.37
41,394.50
35,149.27
1,161.98
0
926.02
11.89
501.11
79.11
79.33
74.22
86.92
625.45
Trade Receivables
1,274.14
1,082.13
1,632.42
2,132.67
1,910.06
Cash And Cash Equivalents
2,030.17
6,211.50
3,464.14
4,444.17
3,869.48
693.52
348.26
704.71
1,571.00
3,056.98
OtherCurrentAssets
1,540.16
1,072.54
1,146.45
2,171.49
2,312.07
Total Current Assets
6,779.08
8,793.76
7,947.96
10,418.14
12,275.15
79,726.01
74,670.58
58,558.33
51,812.64
47,424.42
5,998.07
6,168.34
4,925.32
4,308.59
8,093.65
1,653.45
1,554.82
1,198.29
902.08
620.57
-
-
-
-
CURRENT ASSETS
Current Investments
Inventories
Short Term Loans And Advances
Total Assets
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign
Currency
EARNINGS IN FOREIGN EXCHANGE
Page | 42
-
FOB Value Of Goods
-
-
-
-
-
113.86
93.88
40.49
41.4
-
176.79
176.79
176.79
176.79
180.21
-
-
-
-
-
44,810.74
36,371.70
20,768.88
15,603.89
13,455.48
Current Investments Quoted Market
Value
-
-
-
-
-
Current Investments Unquoted
Book Value
-
-
926.02
11.89
501.11
Other Earnings
BONUS DETAILS
Bonus Equity Share Capital
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted
Market Value
Non-Current Investments Unquoted
Book Value
CURRENT INVESTMENTS
Adani Ports and Special
Economic Zone
Cash Flow
Net Profit Before Tax
Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents
Page | 43
------------------- in Rs. Cr. ------------------Mar '23
Mar '22
Mar '21
Mar '20
Mar '19
12 mths
12 mths
12 mths
12 mths
12 mths
-1028.23
621.73
2909.64
2031.73
3663.64
2714.03
3012.05
3041.80
3169.95
3214.41
-4024.98
-8803.19
-7966.60
-31.35
-2403.12
-3451.65
7308.44
3827.15
-2580.74
2555.24
-4762.60
1517.30
-1097.65
557.86
3366.53
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents
4828.04
65.44
3310.74
4828.04
4408.39
3310.74
3850.53
4408.39
484.00
3850.53
Typical list of cash inflows and outflows
Profit and Loss Account
Items
Page | 44
Cash inflows:
From sale of goods and services
From royalties, fees , commission and other revenues
return on loans (interest received) return on securities
(dividends received)
From Insurance claims receipts, fire accident (residuary
item).
Cash outflows:
To suppliers of inventory
To employee for services
To government for taxes
To lenders for interest
To others for expenses
To Insurance premium payments
To Cash theft
Changes in Investments
and long term assets –
Balance Sheet Items
Cash Outflows because of :
Purchase fixed assets
Purchase debt and equity securities
Loans and advances given to third parties
Changes in long term Cash Inflows because of :
liabilities and shareholders Issue of equity & preference share capital
equityBuyback of Equity Shares
Balance Sheet items.
Borrowing of loans, issue of debentures, bonds ,
Page | 45
Cash Outflows because of :
Redemption of Preference Shares;
Repayment of Loans;
Redemption of Debentures
Payment of dividends (preference , equity, interim and
final )
Cash payment by lessee for reduction of the
outstanding liability relating to lease.
Dividend History & Share Price Data
Share Price Data
Aug-23
854.5
778.95
868.35
751.6
17.43M
9.85%
Jul-23
777.85
Jun-23
739.25
744.5
780
730.5
759.9
708
60.56M
5.22%
703
134.90M
0.05%
May-23
738.85
683.8
785.65
656.75
175.30M
8.45%
Apr-23
681.3
638.55
683
622.15
71.70M
7.82%
Mar-23
Feb-23
631.9
598
722.75
571.55
310.69M
6.66%
592.45
627
629
395.1
549.83M
-3.30%
Jan-23
612.65
823
826.75
537
231.07M
25.11%
Dec-22
818.1
884.75
912
785.3
108.66M
-7.14%
881
827.7
916
823.5
163.28M
6.98%
Oct-22
823.55
821
835
771.65
114.72M
0.35%
Sep-22
820.65
841.8
987.85
801
197.47M
-2.55%
Aug-22
842.15
770
891.9
765.05
143.68M
10.27%
Jul-22
763.7
670
775.65
656
60.69M
13.64%
Jun-22
672.05
739.8
758.5
653.1
76.72M
-9.16%
May-22
739.85
850
864.2
668.15
140.75M
13.61%
Apr-22
856.4
774.5
924.65
774.5
189.65M
10.62%
Mar-22
774.2
702.95
781
663.55
109.28M
9.43%
Feb 2022 E
707.5
721
750.85
651.95
90.69M
-1.23%
Jan-22
716.3
732
795
689
98.07M
-1.92%
Dec-21
730.3
695
794.95
682.75
107.96M
6.79%
Nov-21
683.85
705
774.3
679.7
80.73M
-1.32%
Oct-21
693
735.85
829.9
681.15
116.98M
-6.08%
Sep-21
737.9
750.05
786
733
101.03M
-1.39%
Nov 2022 E
APSE Dividends
Ex-Dividend Date
EPS Payout
Ratio
Dividend
Type
Jul 28, 2023
5
93% Annual
Jul 14, 2022
5
103% Annual
Page | 46
Payment
Date
Sep 07,
2023
Aug 25,
2022
Yield
0.67%
0.69%
Jun 24, 2021
5
79% Annual
3.2
Jul 26, 2019
0.2
3% Annual
Jul 26, 2018
2
45% Annual
Jul 31, 2017
1.3
23% Annual
Mar 22, 2016
1.1
25%
May 22, 2015
1.1
34% Annual
Jul 31, 2014
1
36% Annual
Jul 30, 2013
1
Jul 30, 2012
0.7
Feb 13, 2012
0.3
May 05, 2011
0.4
Feb 14, 2011
0.5
Aug 09, 2010
1.5
Feb 03, 2010
2.5
Aug 17, 2009
1
Feb 18, 2009
2
Sep 12, 2008
1.5
Page | 47
48%
Interim
Payment
Mar 16, 2020
Interim
Payment
Final
Payment
Final
Payment
Interim
Payment
Interim
Payment
Interim
Payment
Final
Payment
Interim
Payment
Final
Payment
Interim
Payment
Annual
Aug 11,
2021
0.70%
Apr 03, 2020 1.16%
Sep 05,
2019
Sep 05,
2018
Sep 08,
2017
0.05%
0.50%
0.33%
Apr 14, 2016 0.90%
Sep 10,
2015
Sep 08,
2014
Sep 07,
2013
Sep 08,
2012
Mar 07,
2012
May 16,
2011
Feb 16,
2011
Aug 25,
2010
0.32%
0.38%
0.72%
0.88%
0.49%
0.90%
0.58%
0.51%
--
0.88%
Sep 05,
2009
0.81%
--
1.01%
Sep 26,
2008
0.26%