RATING

RECOMMENDATION

Neutral

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RATING

RECOMMENDATION

Neutral

RATING

RECOMMENDATION

Neutral

  • Sterlite Power Transmission Growth

Get info on Sterlite Power Share Price before buying, selling and investing - Read our Research report on Sterlite Power Peer Comparison & Information like - Revenue Growth, EPS Growth, & Profitability Ratios, total assets etc. in one click.

Sterlite Power Transmission Revenue Growth

Growth in %

  • -26.00%

    1 Year

  • 8.69%

    3 Year

  • 7.19%

    5 Year

The company's total revenue has declined by 26% in FY'21 over FY'20, which is majorly due to decline in the company's revenue from operations. Due to COVID-19,the company has faced situation of work stoppage at their transmission line, restriction in movement of goods, delay in permits and approvals. The government also postponed or delayed their tenders for power transmission projects, including construction projects and upgrade/uprate projects. As a result, revenue from Solutions business and revenue from concession assets for Fiscal 2021 were adversely impacted. The company has been deriving the major portion of it's total revenue from sale of its power transmission assets since the past two financial years FY'20 and FY'21, which could be an extremely harmful position for the company and can lead to hamper its long term growth.

Sterlite Power Transmission Net Profit Growth(PAT)

Growth in %

  • -7.73%

    1 Year

  • 53.97%

    3 Year

  • NA

    5 Year

Despite the company liquidating its assets in FY'21, they have faced a decline of 7.73% in FY'21 over FY'20 and their net profit has decreased from INR 942 Cr in 2020 to INR 870 Cr in 2021. Additionally, the company has seen a decline in revenue of approximately INR 1340 Cr in FY'21 due to decrease in the revenue from engineering, procurement and construction (EPC) contracts, revenue from construction of concession assets and revenue from power transmission services.

Sterlite Power Transmission EPS Growth

Growth in %

  • -7.73%

    1 Year

  • 53.97%

    3 Year

  • NA

    5 Year

  • Sterlite Power Transmission Book Value Growth

Growth in %

  • NA

    1 Year

  • NA

    2 Year

  • NA

    3 Year

The book value of the company has been negative for all financial years preceding FY'21. This is because the company's total equity has been negative as the company has included the losses for the respective financial years as a part of other equity. Therefore, the company had to liquidate its assets in FY'20 and FY'21 in order to attain profitability and hence we can see that the book value per share has become INR 95 in FY'21.

Sterlite Power Transmission EBITDA Growth

Growth in %

  • -25.46%

    1 Year

  • 28.27%

    3 Year

  • 25.06%

    5 Year


Sterlite Power Transmission Operating Profit Growth

Growth in %

  • -21.71%

    1 Year

  • 37.35%

    3 Year

  • 40.06%

    5 Year

The EBIT of the company has decreased from INR 2165 Cr in 2020 to INR 1695 Cr in 2021 showing a decline of 22% year-on-year. This decrease in operating profit is attributable to the company having a decrease in its revenue in FY'21 due to discontinuity of business operations as a result of the pandemic further resulting in decreased operating revenues.

Sterlite Power Transmission Asset Growth

Growth in %

  • -26.15%

    1 Year

  • -5.96%

    3 Year

  • -3.12%

    5 Year

The company's total assets have decreased by 26% in FY'21 over FY'20. This is mainly attributable to the company selling off its transmission line assets worth INR 400 Cr in FY'21. The company has also decreased its capital work in progress which comprises of the expenses on transmission lines by INR 1000 Cr approximately in FY'21 compared to previous year. Additionally, concession contract assets have also decreased by INR 400 Cr in FY'21.

Sterlite Power Transmission Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • 75.18%

    3 Year

  • 4.34%

    5 Year

The company's cash flow from operations has increased in FY'21 and has become positive at INR 553 Cr. This is a massive increase for the company since the company's cash flow from operations was negative since the past two years. This increase can be attributed to the company selling off its other assets as well as an increase in the contract liabilities for EPC contracts including advances from customers by INR 300 Cr approximately. As a result we have a positive cash flow from operations.

  • Sterlite Power Transmission Solvency Ratios

Sterlite Power Transmission D/E Ratio

The company has seen a positive total debt to equity ratio since the total equity had been negative for years preceding 2020 due to loss for the year being included in the other equity. The company has massively reduced its total debt and has seen a decrease of INR 100 Cr approx in loan from banks, INR 1200 Cr approx in loans from financial institutions, INR 340 Cr in bills discounted and acceptance and INR 95 Cr approx in working capital demand from banks. Additionally, the company had received advance from Sterlite Interlinks Ltd worth INR 620 Cr approx in 2020, which they have cleared off in 2021. Despite the company reducing its debt, the debt to equity ratio is still very high.

Sterlite Power Transmission Current Ratio

The company's current ratio has shown a growth of 11.3% in FY'21 over FY'20. The current assets of the company have decreased by 5% approx due to decrease in inventory and bank balance in FY'21 over FY'20. The current liabilities, on the other hand, have decreased by 32% due to a large reduction of INR 600 Cr in FY'21 over FY'20. This has resulted in the current ratio rising.

Sterlite Power Transmission Quick Ratio

Sterlite Power Transmission Interest Coverage Ratio

The interest coverage ratio of the company has increased and reached 2.95 in FY'21. This is because the company's total debt has decreased by INR 4100 Cr in FY'21 over FY'20, as a result of which the company's finance cost has decreased by INR 200 Cr approx due to which the company's interest coverage has increased.

  • Sterlite Power Transmission Operating Efficiency


Sterlite Power Transmission Operating Profit EBIT Margin(OPM)

The EBIT of the company has decreased by 22% in FY'21 over FY'20 due to the discontinuity of business as a result of the pandemic. On the other hand the revenue from operations have decreased by INR 1000 Cr in FY'21 over FY'20 due to decrease in revenue from engineering, procurement and construction (EPC) contracts, revenue from power transmission services and revenue from construction of concession asset. As a result the EBIT margin has increased.

Sterlite Power Transmission Profit Before Tax Margin (PBT Margin)

Sterlite Power Transmission Profit After Tax Margin (PAT Margin)

The company' net profit has decreased by INR 72 Cr in FY'21 over FY'20. Despite the company selling off its transmission assets in FY'21, they were still unbale to increase their net profit over the previous year. The revenue from operations has shown a much larger decline of approximately INR 1000 Cr due to which the PAT margin has increased.

  • Sterlite Power Transmission Profitablity Ratio


Sterlite Power Transmission Return on Equity(RoE)

The ROE of the company has become positive in FY'21 which is due to the company having a positive equity balance in the current and previous financial year. The company's net income has decreased in FY'21 compared to FY'20 despite the company liquidating its commissioned assets in both the financial years and generating unnatural revenue from it. Hence the company's ROE being very high is a misrepresentation since the company is not generating sufficient revenue from its operations.

Sterlite Power Transmission Return on Capital Employed(RoCE)

The return on capital employed had a massive jump from 1.45% in FY'19 to 52.08% in FY'20. This was mainly due to decrease in purchase of raw materials and stock as well as higher total revenue in FY'20. On the other hand, the ROCE has decreased to 44.43% in FY'21, which is because of the company's EBIT decreasing as a result of the company facing decreased revenues in FY'21 as a result of stoppages in currently under-work transmission lines due to the widespread pandemic across the country.

Sterlite Power Transmission Return to Assets (RoA)

The ROA of the company has shown a growth of 24.3% in FY'21 over FY'20. The company's net income has decreased by 8% in FY'21 over FY'20, which is due to a decline in revenue from operations as a result of which the company had to liquidate its assets. The total assets of the company have decreased by 26% in FY'21 over FY'20 since the company has sold off its transmission line assets worth INR 400 Cr and capital work in progress decreased by INR 1000 Cr. As a result the ROA has increased.

  • Sterlite Power Transmission Valuation Ratios

Sterlite Power Transmission Dividend Yield

Sterlite Power Transmission Earning Yield