PPL Corporation (PPL) has reported a 16.22 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $403 million, or $0.59 a share in the quarter, compared with $481 million, or $0.71 a share for the same period last year.
Revenue during the quarter went down marginally by 2.98 percent to $1,951 million from $2,011 million in the previous year period. Gross margin for the quarter expanded 81 basis points over the previous year period to 57.05 percent. Total expenses were 59.20 percent of quarterly revenues, up from 59.08 percent for the same period last year. That has resulted in a contraction of 13 basis points in operating margin to 40.80 percent.
Operating income for the quarter was $796 million, compared with $823 million in the previous year period.
"We remain on track to deliver on our commitments to shareowners in 2017," said William H. Spence, PPL's chairman, president and Chief Executive Officer. "And we remain confident in our ability to deliver our projected long-term earnings and dividend growth as we invest approximately $3 billion a year to build a smarter, more reliable and more secure energy grid and to advance a cleaner energy future."
Operating cash flow drops significantly
PPL Corporation has generated cash of $135 million from operating activities during the quarter, down 75.76 percent or $ 422 million, when compared with the last year period.
The company has spent $677 million cash to meet investing activities during the quarter as against cash outgo of $661 million in the last year period.
Cash flow from financing activities was $607 million for the quarter, up 427.83 percent or $492 million, when compared with the last year period.
Cash and cash equivalents stood at $409 million as on Mar. 31, 2017, down 49.75 percent or $405 million from $814 million on Mar. 31, 2016.
Working capital remains negative
Working capital of PPL Corporation was negative $2,029 million on Mar. 31, 2017 compared with negative $1,353 million on Mar. 31, 2016. Current ratio was at 0.52 as on Mar. 31, 2017, down from 0.67 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 9 days for the quarter from 1 days for the last year period. Days sales outstanding went up to 55 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding was almost stable at 36 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 82 days for the quarter from 79 for the same period last year.
Debt moves up marginally
PPL Corporation has witnessed an increase in total debt over the last one year. It stood at $20,041 million as on Mar. 31, 2017, up 1.09 percent or $217 million from $19,824 million on Mar. 31, 2016. Total debt was 51.34 percent of total assets as on Mar. 31, 2017, compared with 51.21 percent on Mar. 31, 2016. Debt to equity ratio was at 1.98 as on Mar. 31, 2017, down from 2.03 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 3.67 for the quarter from 3.67 for the same period last year.
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