What does Adani Power do? Adani Power is a coal based electric power generation company that has approximately 10,000 megawatts generation capacity. Balance sheet analysis The company's average current ratio for the last three years is 0.58, and the industry's current ratio is 1.96. Current ratio of the company has not been increasing in the previous ten years. It means the company is not capable of paying its debt by selling its assets in the short term, which is a bad sign for a company. Average ROE for the last three years is -1.53, which is even lower than the industry's average i.e., -0.05. It means that the management is not effectively using its assets for generating profits. ROE over the last 5 years Average debt-equity ratio over the previous three years is 27.8, which is much higher than the industry's average(1.86). Though the power sector is a capital intensive industry, 27 times debt to equity is a financial risk for the company. It means company won&
Google is in talks with Indian telecom giant Vodafone Idea for a 5% stake in the company. The valuation or the direct investment numbers haven't been revealed yet and when asked Google and Vodafone both have declined to comment on this. Why Vodafone-Idea need money? In late last October, the Supreme Court of India gave it's ruling on a decade-old adjusted gross revenues( AGR ) case where the supreme court asked Vodafone to pay Rs. 28,300 crore (expected to be 53,000 crores) in dues and interests to the Indian Government. Out of the huge amount Vodafone-Idea has already paid Rs. 6,854 crores which are the principal amount, it needed to pay as of March 6, 2020. Some respite came to the company where they got Rs. 733 crore tax relief. Also, the tariff hikes late last year has helped the company to survive so far. Vodafone India's parent company ( Vodafone Group plc ) with a 45% stake has been looking for investors as they don't want to put any more money into the busin