ANDHRA PETRO 2020-21 Annual Report Analysis

Wed, 31 Mar

ANDHRA PETRO has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ANDHRA PETRO Income Statement Analysis

• Operating income during the year rose 24.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 322.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.2% in FY21 as against 7.1% in FY20.
• Depreciation charges increased by 9.5% and finance costs increased by 500.1% YoY, respectively.
• Other income grew by 16.4% YoY.
• Net profit for the year grew by 450.6% YoY.
• Net profit margins during the year grew from 3.0% in FY20 to 13.5% in FY21.

ANDHRA PETRO Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,559	5,661	24.2%
Other income	Rs m	33	39	16.4%
Total Revenues	Rs m	4,593	5,699	24.1%
Gross profit	Rs m	325	1,372	322.4%
Depreciation	Rs m	128	140	9.5%
Interest	Rs m	15	91	500.1%
Profit before tax	Rs m	215	1,179	449.0%
Tax	Rs m	76	415	446.0%
Profit after tax	Rs m	139	765	450.6%
Gross profit margin	%	7.1	24.2
Effective tax rate	%	35.4	35.2
Net profit margin	%	3.0	13.5

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ANDHRA PETRO Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 403 million as compared to Rs 313 million in FY20, thereby witnessing an increase of 28.9%.
• Current assets rose 144% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 32%.

ANDHRA PETRO Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,235	3,037	35.9
Current Liabilities	Rs m	313	403	28.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,372	4,465	32.4
Current assets	Rs m	818	1,997	144.0
Fixed Assets	Rs m	2,554	2,468	-3.4
Total Assets	Rs m	3,372	4,465	32.4

ANDHRA PETRO Cash Flow Statement Analysis

• ANDHRA PETRO's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 207.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 637.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -66 million, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 65 million from the Rs 10 million net cash flows seen during FY20.

ANDHRA PETRO Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	407	1,253	207.6%
Cash Flow from Investing Activities	Rs m	-152	-1,122	-
Cash Flow from Financing Activities	Rs m	-245	-66	-
Net Cash Flow	Rs m	10	65	546.9%

Current Valuations for ANDHRA PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 61.8, stands at 6.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	53.7	66.6
TTM Earnings per share	Rs	1.6	9.0
Diluted earnings per share	Rs	1.6	9.0
Price to Cash Flow	x	5.2	4.1
TTM P/E ratio	x	10.1	6.9
Price / Book Value ratio	x	1.6	1.2
Market Cap	Rs m	3,492	3,730
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 5.0x during FY21, from 2.6x during FY20. 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 deteriorated and stood at 13.9x during FY21, from 15.1x during FY20. 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 25.2% during FY21, from 6.2% during FY21. 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 41.8% during FY21, from 10.3% during FY20. 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 19.2% during FY21, from 4.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.6	5.0
Debtors’ Days	Days	48	28
Interest coverage	x	15.1	13.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.6	19.2
Return on equity	%	6.2	25.2
Return on capital employed	%	10.3	41.8

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 16.5 to Rs 61.8, registering a gain of Rs 45.3 or around 275.4%.

Overall, the S&P BSE SENSEX is up 74.1% 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