PPL Corporation (PPL) has reported a 20.36 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $473 million, or $0.69 a share in the quarter, compared with $393 million, or $0.58 a share for the same period last year.
Revenue during the quarter went up marginally by 0.59 percent to $1,889 million from $1,878 million in the previous year period. Total expenses were 58.39 percent of quarterly revenues, down from 63.47 percent for the same period last year. This has led to an improvement of 508 basis points in operating margin to 41.61 percent.
Operating income for the quarter was $786 million, compared with $686 million in the previous year period.
"Based on PPL's continued strong performance year-to-date and better than expected third-quarter results across our business units, we are raising the midpoint of our 2016 ongoing earnings forecast," said William H. Spence, PPL’s chairman, president and Chief Executive Officer.
Operating cash flow improves
PPL Corporation has generated cash of $2,230 million from operating activities during the nine month period, up 9.80 percent or $199 million, when compared with the last year period.
The company has spent $2,066 million cash to meet investing activities during the nine month period as against cash outgo of $2,612 million in the last year period.
The company has spent $558 million cash to carry out financing activities during the nine month period as against cash outgo of $183 million in the last year period.
Cash and cash equivalents stood at $416 million as on Sep. 30, 2016, down 57.59 percent or $565 million from $981 million on Sep. 30, 2015.
Working capital remains negative
Working capital of PPL Corporation was negative $1,313 million on Sep. 30, 2016 compared with negative $1,478 million on Sep. 30, 2015. Current ratio was at 0.62 as on Sep. 30, 2016, down from 0.67 on Sep. 30, 2015.
Days sales outstanding went down to 58 days for the quarter compared with 61 days for the same period last year.
Debt comes down marginally
PPL Corporation has recorded a decline in total debt over the last one year. It stood at $19,148 million as on Sep. 30, 2016, down 3.11 percent or $614 million from $19,762 million on Sep. 30, 2015. Total debt was 50.34 percent of total assets as on Sep. 30, 2016, compared with 50.35 percent on Sep. 30, 2015. Debt to equity ratio was at 1.92 as on Sep. 30, 2016, down from 1.93 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.52 for the quarter from 3.10 for the same period last year.
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