ANDHRA PETRO 2017-18 Annual Report Analysis

Sat, 31 Mar

ANDHRA PETRO has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ANDHRA PETRO Income Statement Analysis

• Operating income during the year rose 75.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 468.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY18 as against 4.1% in FY17.
• Depreciation charges increased by 5.1% and finance costs decreased by 23.8% YoY, respectively.
• Other income grew by 17.6% YoY.
• Net profit for the year declined by 731.7% YoY.
• Net profit margins during the year grew from 2.6% in FY17 to 9.2% in FY18.

ANDHRA PETRO Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	2,874	5,036	75.3%
Other income	Rs m	21	24	17.6%
Total Revenues	Rs m	2,894	5,061	74.9%
Gross profit	Rs m	116	662	468.3%
Depreciation	Rs m	90	95	5.1%
Interest	Rs m	156	119	-23.8%
Profit before tax	Rs m	-109	473	-533.4%
Tax	Rs m	-35	8	-121.4%
Profit after tax	Rs m	-74	465	-731.7%
Gross profit margin	%	4.1	13.1
Effective tax rate	%	32.5	1.6
Net profit margin	%	-2.6	9.2

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ANDHRA PETRO Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 734 million as compared to Rs 649 million in FY17, thereby witnessing an increase of 13.2%.
• Long-term debt down at Rs 136 million as compared to Rs 744 million during FY17, a fall of 81.7%.
• Current assets fell 20% and stood at Rs 552 million, while fixed assets fell 2% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 3 billion during FY17, thereby witnessing a fall of 7%.

ANDHRA PETRO Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,135	1,577	38.9
Current Liabilities	Rs m	649	734	13.2
Long-term Debt	Rs m	744	136	-81.7
Total Liabilities	Rs m	2,638	2,463	-6.6
Current assets	Rs m	691	552	-20.1
Fixed Assets	Rs m	1,948	1,911	-1.9
Total Assets	Rs m	2,638	2,463	-6.6

ANDHRA PETRO Cash Flow Statement Analysis

• ANDHRA PETRO's cash flow from operating activities (CFO) during FY18 stood at Rs 604 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -75 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -516 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 13 million from the Rs -1 million net cash flows seen during FY17.

ANDHRA PETRO Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	-143	604	-
Cash Flow from Investing Activities	Rs m	118	-75	-
Cash Flow from Financing Activities	Rs m	23	-516	-
Net Cash Flow	Rs m	-1	13	-

Current Valuations for ANDHRA PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an improvement from the EPS of Rs -0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.4, stands at 11.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	33.8	59.3
TTM Earnings per share	Rs	-0.9	5.5
Diluted earnings per share	Rs	-0.9	5.5
Price to Cash Flow	x	129.1	7.6
TTM P/E ratio	x	-34.9	11.8
Price / Book Value ratio	x	1.5	2.7
Market Cap	Rs m	1,693	4,283
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ANDHRA PETRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY18, from 1.1x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5.0x during FY18, from 0.3x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 29.5% during FY18, from -6.5% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 34.5% during FY18, from 2.5% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 23.7% during FY18, from 3.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.1	0.8
Debtors’ Days	Days	277	248
Interest coverage	x	0.3	5.0
Debt to equity ratio	x	0.7	0.1
Return on assets	%	3.1	23.7
Return on equity	%	-6.5	29.5
Return on capital employed	%	2.5	34.5

To see how ANDHRA PETRO has performed over the last 5 years, please visit here.

ANDHRA PETRO Share Price Performance

Over the last one year, ANDHRA PETRO share price has moved up from Rs 25.5 to Rs 57.4, registering a gain of Rs 32.0 or around 125.5%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for ANDHRA PETRO and quarterly results for ANDHRA PETRO)

Read: Latest Annual Report Analysis of ANDHRA PETRO