Sterlite Power Annual Report | Balance Sheet for FY 2022-23

Sterlite Power Transmission Limited (Sterlite Power) Return Comparision with Primex 40 Index

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Sterlite Power Transmission Limited

STERLITE POWER TRANSMISSION Limited Balance Sheet (In Rs. Millions)

PARTICULARS	31st March 2023	31st March 2022
Assets
Non-Current Assets
Property, plant and equipment	3,445.22	3,330.52
Capital work-in-progress	2,860.58	230.77
Intangible assets	418.91	362.4
Intangible assets under development	-	0.07
Right-of-use assets	476.98	615.68
Investment in associates and joint ventures	100.82	251.79
Financial assets
Investments	8,118.56	5,955.98
Trade receivables	-	-
Other financial assets	1,412.00	926.4
Income tax assets (net)	611.73	887.52
Deferred tax assets (net)	-	175.77
Other non-current assets	43,524.79	18,431.30
Total non-current assets	60,969.59	31,168.20
Current assets
Inventories	6,597.04	2,207.18
Financial assets
Investments	805	-
Trade receivables	15,996.30	13,604.29
Cash and cash equivalents	11,576.15	11,475.58
Other bank balances	2,802.15	2,024.95
Loans	-	35.52
Other financial assets	1,827.97	1,999.97
Other current assets	9,788.56	5,537.53
Total Financial assets	49,393.17	36,885.02
Assets classified as held for sale	-	23,437.85
Total current assets	49,393.17	60,322.87
TOTAL ASSETS	1,10,362.76	91,491.07
EQUITY AND LIABILITIES
Equity
Equity share capital	244.72	122.36
Other equity
Securities premium	4,450.46	4,536.80
Retained earnings	11,321.15	8,638.98
Other reserves	-1,076.31	3,607.92
Equity attributable to equity holders of the parent	14,940.02	16,906.06
Non-controlling interest	152.76	81.53
Total equity	15,092.78	16,987.59
Liabilities
Non-current liabilities
Borrowings	35,543.51	15,629.13
Lease liabilities	366.04	454.74
Other financial liabilities	1,290.69	447.29
Employee benefit obligations	55.72	76.1
Deferred tax liabilities (net)	1,020.40	543.99
Other non-current liabilities	5,244.61	4,973.18
Total non-current liabilities	43,520.97	22,124.43
Current liabilities
Borrowings	10,570.96	5,578.08
Lease liabilities	101.04	124.62
Trade payables
total outstanding dues of micro enterprises and small enterprises	908.41	492.92
total outstanding dues of creditors other than micro enterprises and small enterprises	20,069.76	16,195.32
Other financial liabilities	7,040.29	3,057.36
Employee benefit obligations	77.64	106.66
Other current liabilities	12,150.67	5,798.02
Current tax liabilities (net)	830.24	351.86
Liabilities directly associated with assets classified as held for sale	-	20,674.21
Total current liabilities	51,749.01	52,379.05
Total liabilities	95,269.98	74,503.48
TOTAL EQUITY AND LIABILITIES	1,10,362.76	91,491

STERLITE POWER TRANSMISSION Limited Profit & Loss Statement (In Rs. Millions)

PARTICULARS	31st March 2023	31st March 2022
INCOME
Revenue from operations	62,970.68	51,974.83
Other income	1,550.61	7,970.70
Total income	64,521.29	59,945.53
EXPENSES
Cost of raw material and components consumed	17,383.57	12,003.35
Construction material and contract expense	27,264.53	27,388.71
Purchase of traded goods	676.87	579.31
(Increase)/Decrease in inventories of finished goods, work-in-progress and traded goods	-1,287.48	176.84
Employee benefits expense	2657.63	2,470.37
Other expenses	6,328.89	3,788.66
Total expenses	53,024.01	46,407.24
Earnings before interest, tax, depreciation and amortization (EBITDA)	11,497.28	13,538.29
Depreciation and amortization expense	1,058.04	803.56
Finance costs	7,255.02	4,256.76
Finance income	-1,288.56	-884.6
Profit before share of profit of associates and joint ventures and tax expense	4,472.78	9,362.57
Share of loss of associates and joint ventures	-2,168.87	-2,675.60
Exceptional item	-	117
Profit before tax	2,303.91	6,569.97
Tax expense:
Current tax	1,463.64	1,570.18
Deferred tax charge	1,196.92	743.27
Income tax for earlier years	-29.33	-144.9
Income tax expense	2,631.23	2,168.55
Profit/(loss) for the year	-327.32	4,401.40
Total comprehensive income for the year, net of tax	-2,069.97	9,619.57
Earnings per equity share
Basic earnings per share	-2.67	35.97
Diluted earnings per share	-2.67	35.97

STERLITE POWER TRANSMISSION Limited Consolidated Cash Flow Statement (In Rs. Millions)

PARTICULARS	31st March 2023	31st March 2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit/(loss) as per consolidated statement of profit and loss	-327.32	4,401.42
Adjustment for taxation	2,631.23	2,168.55
Profit before tax	2,303.91	6,569.97
Non-cash adjustment to reconcile profit before tax to net cash flows
Depreciation and amortization expense	1,058.04	803.56
Provision for doubtful debts	-	103.59
Reversal of impairment allowance for trade receivables	-31.74	-
Loss on sale of property, plant and equipment (net)	5.48	4.48
Gain/(Loss) on sale of stake in subsidiary (loss of control)	-	-94.44
Indemnification expenses incurred under share purchase agreeement	59.56	77.13
Net profit on sale of investments in Indigoid Investment Managers Limited and in units of India Grid Trust	-	-297.5
Write down related to assets held for sale	-	-422.23
Share based payment expense	59.06	-
Impairment and expected loss on concession contract assets (including loss for onerous contracts)	898.66	-
Income on investment in India Grid Trust	-	-11.47
Share in loss of associates and joint ventures	2,168.87	2,675.60
Finance costs	7,255.02	4,256.76
Finance income	-1,288.56	-884.6
Net gain on sale of power transmission assets	-1,350.05	-7,031.95
Consideration received from India Grid Trust on sale of transmission assets in earlier years	-	-513.65
	8,834.33	-1,334.72
Operating profit before working capital changes	11,138.24	5,235.25
Movements in working capital:
Increase in trade payables	4,134.39	6,599.79
Increase/(decrease) in employee benefits obligation	-53.24	5.46
Increase in other liabilities	6,550.15	1,675.43
Increase/(decrease) in other financial liabilities	-1977.89	746.02
Increase in trade receivables	-2,240.06	-4,539.86
(Increase)/decrease in inventories	-4,389.86	880.66
(Increase)/decrease in other financial assets	-25.06	1,227.29
Increase in other assets	-28,871.07	-13,327.14
Change in working capital	-26,872.64	-6,732.36
Cash used in operations	-15,734.39	-1,497.11
Direct taxes paid (net of refunds)	-689.25	-1,381.35
Net cash used in operating activities	-16,423.64	-2,878.46
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment, including capital work-in-progress and capital advances	-1,992.34	-6,582.65
Proceeds from sale of property, plant and equipment	71.22	67.74
Sale of mutual funds	1,401.81	9.07
Purchase of mutual funds	-2,200.00	-
Consideration paid on acquisition of Sterlite Interlinks Limited	-13.36	-
Consideration paid on acquisition of Maharashtra Transmission Communication Infrastructure Limited	-100	-200
Proceeds from sale of power transmission assets	3,787.05	6,097.72
Proceeds from sale of units of India Grid Trust	-	283.72
Proceeds from sale of investment in Indi grid Investment Managers Limited	-	359.95
Investment in bank deposits (net)	-1,402.52	1,747.60
Income on investment in India Grid Trust	-	11.47
Payment for indemnification expenses as per share purchase agreement	-39.43	-225.16
Loans given	-624.9	-35
Loans repaid	4,000.42	302.02
Investment in shares of joint ventures	-162.02	-1,007.91
Investment in non-convertible debentures of joint ventures	-836.41	-2,453.00
Investment in compulsorily convertible debentures of joint ventures	-919.69	-99.13
Proceed from sale of non-convertible debentures of joint ventures	-	1,914.23
Finance income received	523.11	301.24
Net cash flow from investing activities	1492.94	491.91
C. CASH FLOW FROM FINANCING ACTIVITIES
Payment of dividend on equity shares	-	-317.97
Payment of dividend on redeemable preference shares	-13.21	-
Proceeds of long-term borrowings	22,404.63	16,788.29
Repayment of long-term borrowings	-1,189.77	-977.61
Proceeds/(repayment) of short-term borrowings (net)	225.21	-2,015.56
Repayment of lease liabilities	-149.21	-86.31
Finance costs paid	-5,633.23	-4,603.51
Net cash flow from financing activities	15644.42	8,787.33
Net increase in cash and cash equivalents	713.72	6,400.79
Cash and cash equivalents as at beginning of year	11,475.58	6,711.19
Cash and cash equivalents on dispoal/loss of control of subsidiaries in power transmission and infrastructure business	-	-657.76
Cash and cash equivalents on conversion of Sterlite Interlinks Limited from associate to subsidiary	21.3	-
Cash and cash equivalents on addition of subsidiary (refer note 49)	-	65.71
Decrease of cash and cash equivalents classifed under assets held for sale (refer note 12)	-638.33	-1,044.40
Adjustments on account of foreign currency translation	3.88	0.05
Cash and cash equivalents as at year end	11,576.15	11,475.58

Cash Flow Statement Analysis of Sterlite Power Transmission Limited for the FY 2022 and FY 2023:

A. Cash Flow from Operating Activities:

In 2023, the net profit as per the consolidated statement of profit and loss was a loss of -327.32, a significant decline from the profit of 4,401.42 in 2022. Adjustments for taxation amounted to 2,631.23 in 2023 and 2,168.55 in 2022. Operating profit before working capital changes was 11,138.24 in 2023, surpassing the 5,235.25 recorded in 2022. Movements in working capital witnessed a substantial decrease of -26,872.64 in 2023, compared to -6,732.36 in 2022. The cash used in operations increased to -15,734.39 in 2023 from -1,497.11 in 2022, primarily attributed to changes in working capital. Direct taxes paid (net of refunds) were -689.25 in 2023 and -1,381.35 in 2022. Consequently, the net cash used in operating activities increased to -16,423.64 in 2023 from -2,878.46 in 2022.

B. Cash Flow from Investing Activities:

The cash flow from investing activities in 2023 was 1,492.94, showing an increase from 491.91 in 2022. Noteworthy transactions include the purchase of property, plant, and equipment amounting to -1,992.34 in 2023, as opposed to -6,582.65 in 2022. Proceeds from the sale of power transmission assets saw a notable increase from 6,097.72 in 2022 to 3,787.05 in 2023. Investments in non-convertible debentures of joint ventures decreased to -836.41 in 2023 from -2,453.00 in 2022. The overall net cash flow from investing activities increased, reflecting a strategic approach to capital expenditure and divestment activities.

C. Cash Flow from Financing Activities:

The net cash flow from financing activities increased substantially from 8,787.33 in 2022 to 15,644.42 in 2023. This change is primarily attributed to an increase in the proceeds of long-term borrowings, rising from 16,788.29 in 2022 to 22,404.63 in 2023. Repayment of long-term borrowings increased slightly from -977.61 in 2022 to -1,189.77 in 2023. The company also witnessed a significant change in short-term borrowings, with net proceeds increasing from -2,015.56 in 2022 to 225.21 in 2023. Overall, the company demonstrated a robust financing strategy with a considerable increase in financing activities.

Overview:

In summary, the company experienced a notable shift in its financial performance from 2022 to 2023. The operating activities showed a substantial increase in the net cash used, largely influenced by changes in working capital. Investing activities witnessed a positive shift, with a strategic approach to capital expenditure and divestment. Financing activities demonstrated a robust increase in cash flow, primarily driven by an uptick in the proceeds of long-term borrowings. The overall cash and cash equivalents increased from 11,475.58 at the beginning of 2023 to 11,576.15 at the end of the year. The detailed analysis provides insights into the company 's financial decisions and their impact on cash flow during the specified periods.

Dividend history of Sterlite Power Transmission Limited (In Rs. Millions)