ANDHRA PETRO 2018-19 Annual Report Analysis

Sun, 31 Mar

ANDHRA PETRO has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ANDHRA PETRO Income Statement Analysis

• Operating income during the year rose 32.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.3% in FY19 as against 13.1% in FY18.
• Depreciation charges increased by 10.6% and finance costs decreased by 50.1% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year grew by 50.2% YoY.
• Net profit margins during the year grew from 9.2% in FY18 to 10.5% in FY19.

ANDHRA PETRO Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	5,036	6,659	32.2%
Other income	Rs m	24	27	12.0%
Total Revenues	Rs m	5,061	6,686	32.1%
Gross profit	Rs m	662	1,087	64.2%
Depreciation	Rs m	95	105	10.6%
Interest	Rs m	119	59	-50.1%
Profit before tax	Rs m	473	950	101.0%
Tax	Rs m	8	252	3,214.5%
Profit after tax	Rs m	465	698	50.2%
Gross profit margin	%	13.1	16.3
Effective tax rate	%	1.6	26.5
Net profit margin	%	9.2	10.5

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ANDHRA PETRO Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 228 million as compared to Rs 734 million in FY18, thereby witnessing an decrease of -69.0%.
• Long-term debt down at Rs 56 million as compared to Rs 136 million during FY18, a fall of 58.9%.
• Current assets rose 44% and stood at Rs 793 million, while fixed assets fell 5% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 3 billion as against Rs 2 billion during FY18, thereby witnessing a growth of 6%.

ANDHRA PETRO Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	1,577	2,265	43.7
Current Liabilities	Rs m	734	228	-69.0
Long-term Debt	Rs m	136	56	-58.9
Total Liabilities	Rs m	2,463	2,607	5.8
Current assets	Rs m	552	793	43.7
Fixed Assets	Rs m	1,911	1,814	-5.1
Total Assets	Rs m	2,463	2,607	5.8

ANDHRA PETRO Cash Flow Statement Analysis

• ANDHRA PETRO's cash flow from operating activities (CFO) during FY19 stood at Rs 787 million, an improvement of 30.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -150 million, an improvement of 98.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -631 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 7 million from the Rs 13 million net cash flows seen during FY18.

ANDHRA PETRO Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	604	787	30.3%
Cash Flow from Investing Activities	Rs m	-75	-150	-
Cash Flow from Financing Activities	Rs m	-516	-631	-
Net Cash Flow	Rs m	13	7	-47.7%

Current Valuations for ANDHRA PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.7, stands at 6.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	59.3	78.4
TTM Earnings per share	Rs	5.5	8.2
Diluted earnings per share	Rs	5.5	8.2
Price to Cash Flow	x	8.7	7.3
TTM P/E ratio	x	11.8	6.6
Price / Book Value ratio	x	2.7	2.6
Market Cap	Rs m	4,283	5,838
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for ANDHRA PETRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY19, from 0.8x during FY18. 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 17.1x during FY19, from 5.0x during FY18. 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 30.8% during FY19, from 29.5% during FY19. 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 43.5% during FY19, from 34.5% during FY18. 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 29.1% during FY19, from 23.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	0.8	3.5
Debtors’ Days	Days	248	195
Interest coverage	x	5.0	17.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	23.7	29.1
Return on equity	%	29.5	30.8
Return on capital employed	%	34.5	43.5

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 down from Rs 57.4 to Rs 54.7, registering a loss of Rs 2.8 or around 4.8%.

Overall, the S&P BSE SENSEX is up 16.3% 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