STAKEHOLDERS EMPOWERMENT SERVICES KSK ENERGY …KSK Energy Ventures Limited is a power project...
Transcript of STAKEHOLDERS EMPOWERMENT SERVICES KSK ENERGY …KSK Energy Ventures Limited is a power project...
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STAKEHOLDERS EMPOWERMENT SERVICES
1 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
KSK Energy Ventures Ltd. NSE Code - KSK TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH NOVEMBER 2017)
Sector - Power Generation & Distribution NSE Market Price (`) 7.35 NSE Market Cap. (₹ Cr.) 314.60
Face Value (`) 10.00 Equity (` Cr.) 423.99
Business Group - MNC Associate 52 week High/Low (₹) 23.7/6.20 Net worth (₹ Cr.)* 3,019.90
Year of Incorporation - 2001 TTM P/E (TTM) N.A. Traded Volume (Shares) 29,06,28
TTM P/BV 0.10 Traded Volume (lacs) 213.61
Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, *As on 30th Sept’ 2017
8-2-293/82/A/431/A Road No 22, COMPANY BACKGROUND
Jubilee Hills, KSK Energy Ventures Limited is a power project development company. The
Company is engaged in the development, ownership, operation and maintenance
of power generation assets in India. The Company operates through two segments:
power generation and power development. The Company develops private sector
power projects. The Company's power plants include Sai Lilagar, which is an
approximately 85 megawatts (MW) coal-based power plant in Chhattisgarh; Sai
Regency, which is an approximately 60 MW natural gas-based power plant in
Tamilnadu; Sitapuram Power, which is an approximately 40 MW coal-based power
plant in Andhra Pradesh; VS Lignite, which is an approximately 135 MW lignite-
based power plant in Rajasthan; Sai Wardha Power, which is an approximately 540
MW coal-based power plant in Maharashtra; Sai Maithili Power, which is an
approximately 10 MW solar power plant in Rajasthan, and KSK Mahanadi Power,
which is an approximately 1,200 MW coal-based power plant in Chhattisgarh.
Hyderabad – 500 033,
Telangana
Company Website:
www.ksk.co.in
Revenue and Profit Performance
The revenue of the Company decreased from ₹4.55 crores to
₹0.76 crores from quarter ending Sep’16 to quarter ending
Sep’17. The Company made a loss of ₹75.48 crores in quarter
ending Sep’17 vis-a-vis making a loss of ₹23.89 crores in quarter
ending Sep’16.
Source: Moneycontrol
Performance vis-à-vis Market
TABLE 2- Returns
1-m 3-m 6-m 12-m
KSK Energy Ventures Ltd -25.00% -4.08% -26.87% -65.17%
Nifty 0.44% 5.71% 8.17% 28.48%
Source - Capitaline/NSE
0.00
0.50
1.00
1.50
Dec 16 Feb 17 Apr 17 Jun 17 Aug 17 Oct 17
KSK Energy Ventures Ltd NIFTY
0.76 6.22 4.55
-75.48
-25.66 -23.89
-100
-50
0
50
Sep'17 Mar'17 Sep'16
Quarterly revenue and Profit (₹ CRORE)
Revenue Profit
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STAKEHOLDERS EMPOWERMENT SERVICES
2 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
TABLE 3 - FINANCIALS
(₹ Cr.) Sep’17 Mar’17 Sep’16 % Change
Sep ’17 vs Mar’17 Mar’17 vs Sep’16
Net Worth 3,019.90 3,119.40 3,119.30 -3.19% 0.00%
Current Assets 252.40 233.00 259.70 8.33% -10.28%
Non-Current Assets 4,127.00 4,175.30 4,088.20 -1.16% 2.13%
Total Assets 4,379.40 4,408.30 4,347.90 -0.66% 1.39%
Investments 3,996.80 4,008.60 3,926.90 -0.29% 2.08%
Finance Cost 34.20 35.46 36.95 -3.55% -4.03%
Long Term Liabilities 487.30 500.10 443.00 -2.56% 12.89%
Current Liabilities 872.30 788.80 785.70 10.59% 0.39%
Turnover 0.76 6.22 4.55 -87.78% 36.70%
Profit After Tax (PAT) -75.48 -25.66 -23.89 N.A. N.A.
EPS (₹) -1.78 -0.60 -0.56 N.A. N.A.
Source - Money Control /Stock exchange filing
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: There is no qualified opinion from the Auditor for the FY 2014-15, FY 2015-16 & FY 2016-17.
Response Comment
Frequency of Qualifications -
Have the auditors made any adverse remark in last 3 years? No No
Are the material accounts audited by the Principal Auditors? Yes Yes
Do the financial statements include material unaudited
financial statements? No No
TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)
Regulatory Norms Company
% of Independent Directors on the Board 33% 33%
% of Promoter Directors on the Board - 22%
Number of Women Directors on the Board At least 1 1
Classification of Chairman of the Board - Independent Director
Is the post of Chairman and MD/CEO held by the same person? - No
Average attendance of Directors in the Board meetings (%) - 84.09%
Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 "Listing Regulations, 2015", the Company should have at least 33% Independent Directors as the Chairman of the Board is
an Independent Director. The Company has 33% of Independent Directors and hence, it meets the regulatory requirements.
Board Diversity: The Company has 9 directors out of which 8 are male and 1 is female.
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STAKEHOLDERS EMPOWERMENT SERVICES
3 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
TABLE 5 - FINANCIAL RATIOS
Ratios Sep’17 Mar’17 Sep’16
% Change
Sep ’17 vs
Mar’17
Mar’17 vs
Sep’16
Turn
ove
r
Rat
ios
Inventory Turnover N.A. N.A. N.A. N.A. N.A.
Debtors Turnover 0.03 0.20 0.11 -87.33% 83.45%
Fixed asset Turnover 0.00 0.00 0.00 -87.64% 33.85%
Current Asset Turnover 0.00 0.03 0.02 -88.72% 52.37%
Ret
urn
Rat
ios Operating Profit Margin -5,918.42% 18.33% 53.63% -32,391.74% -65.82%
Net Profit Margin -9,931.58% -412.54% -525.05% N.A. N.A.
Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.
Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.
Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.
Liq
uid
ity
Rat
ios
Current Ratio 0.29 0.30 0.33 -2.04% -10.63%
Quick Ratio 0.29 0.30 0.33 -2.04% -10.63%
Cash Ratio 0.26 0.26 0.28 -0.40% -7.75%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio 0.25 0.22 0.24 13.91% -10.16%
Interest Coverage Ratio N.A. 0.03 0.07 N.A. -51.32%
Trad
ing
Rat
ios
Market Cap / Sales 546.72 57.26 255.32 854.83% -77.57%
Market Cap/ Net Worth 0.14 0.11 0.37 20.51% -69.34%
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA N.A. 312.41 476.11 N.A. -34.38%
Source - Money Control/Stock exchange filing
TABLE 6 - TRADING VOLUME
Particulars Sep’17 Mar’17 Sep’16
% Change
Sep ’17 vs
Mar’17
Mar’17 vs
Sep’16
Trading Volume (shares) (avg. of 1 qtr) 19,92,619 7,38,095 1,39,793 169.97% 427.99%
Trading Volume (shares) (high in 1 qtr) 2,10,71,782 95,34,615 8,54,614 121.00% 1,015.66%
Trading Volume (shares) (low in 1 qtr) 1,24,470 71,566 23,578 73.92% 203.53%
Ratio - High/low trading volume 169.29 133.23 36.25 27.07% 267.56%
Ratio - High/average trading volume 10.57 12.92 6.11 -18.14% 111.30%
Source - Capitaline
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
Sep-17 Mar-17 Sep-16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 48.46 57.83 68.12 • No new equity shares were issued during
the Oct’ 16 to Sept’ 17.
• The promoter shareholding decreased by
19.66% due to invocation of pledged shares.
• The shareholding of public shareholders
increased by the same percentage.
• The promoters have pledged 45.48% of their
shareholding.
Public - Institutional shareholding 17.74 19.39 17.62
Public - Others shareholding 33.80 22.78 14.26
Non-Promoter Non-Public
Shareholding 0.00 0.00 0.00
Source - NSE
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STAKEHOLDERS EMPOWERMENT SERVICES
4 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER 2017)
S. No. Promoters Shareholding S. No. Public Shareholders Shareholding
1 KSK Energy Ltd. 34.63%
1 HDFC Trustee Company Ltd. - HDFC
Equity Fund 8.99%
2 KSK Energy Company Pvt. Ltd. 9.21% 2 LB Mauritius IV Ltd. 4.36%
3 KSK Power Holdings Ltd. 4.63%
3 Tree Line Asia Master Fund
(Singapore) Pte Ltd 2.36%
Source - NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The promoters have not sold/bought any shares during the FY 2016-17
Preferential issue to promoters No preferential issue of shares was made to the promoters during the FY 2016-17
Preferential issue to others No preferential issue of shares was made to other shareholders during the FY 2016-17
GDRs issued by the Company The Company did not issue any GDRs during the FY 2016-17
Issue of ESOPs/Issue of shares other
than Preferential allotment
The Company did not issue any shares to the employees under its ESOP Scheme during
the FY 2016-17
Source - Annual Report FY 16-17
TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No. Name and Description of main products / services % to Total turnover of the Company
1 Project Management / Development of Power Projects 100%
Source - Annual Report FY 16-17
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STAKEHOLDERS EMPOWERMENT SERVICES
5 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
𝐸𝑃𝑆 =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company
𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in
the future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced
over a period.
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover
Current Assets
Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating
income (also known as “operating profit”) during a given period by its sales during the same period.
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit
Sales Turnover
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STAKEHOLDERS EMPOWERMENT SERVICES
6 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’
equity.
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates
a Company's effectiveness in using its working capital.
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟
Current Assets − Current Liabilities
Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡
𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥
𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡
Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is
calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-
share stock price by the per-share revenue.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.
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STAKEHOLDERS EMPOWERMENT SERVICES
7 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝
𝐸𝐵𝐼𝑇𝐷𝐴
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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STAKEHOLDERS EMPOWERMENT SERVICES
8 | P A G E
SECTOR: POWER GENERATION & DISTRIBUTION REPORTING DATE: 27TH NOVEMBER, 2017
KSK ENERGY VENTURES LTD. www.ksk.co.in
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Research Analyst: Kirti Dhokiya