BPCL 2017-18 Annual Report Analysis

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BPCL 2017-18 Annual Report Analysis
Thu, 23 Aug

BPCL 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.

BPCL Income Statement Analysis

  • Operating income during the year rose 17.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.4% in FY18 as against 6.8% in FY17.
  • Depreciation charges and finance costs increased by 36.9% YoY and 70.3% YoY, respectively.
  • Other income declined by 1.8% YoY.
  • Net profit for the year grew by 3.0% YoY.
  • Net profit margins during the year declined from 4.7% in FY17 to 4.1% in FY18.

BPCL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 2,012,507 2,357,698 17.2%
Other income Rs m 18,146 17,827 -1.8%
Total Revenues Rs m 2,030,652 2,375,525 17.0%
Gross profit Rs m 137,457 151,727 10.4%
Depreciation Rs m 21,076 28,850 36.9%
Interest Rs m 6,964 11,857 70.3%
Profit before tax Rs m 127,562 128,846 1.0%
Tax Rs m 41,926 43,816 4.5%
Profit after tax Rs m 95,070 97,919 3.0%
Gross profit margin % 6.8 6.4
Effective tax rate % 32.9 34.0
Net profit margin % 4.7 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BPCL Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 457 billion as compared to Rs 473 billion in FY17, thereby witnessing an decrease of -3.4%.
  • Long-term debt stood at Rs 289 billion as compared to Rs 233 billion during FY17, a growth of 24.3%.
  • Current assets rose 7% and stood at Rs 406 billion, while fixed assets rose 10% and stood at Rs 554 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,204 billion as against Rs 1,091 billion during FY17, thereby witnessing a growth of 10%.

BPCL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 308,198 366,186 18.8
 
Current Liabilities Rs m 473,001 457,019 -3.4
Long-term Debt Rs m 232,553 289,043 24.3
Total Liabilities Rs m 1,090,863 1,204,206 10.4
 
Current assets Rs m 379,101 405,993 7.1
Fixed Assets Rs m 505,177 554,147 9.7
Total Assets Rs m 1,090,863 1,204,206 10.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BPCL Cash Flow Statement Analysis

  • BPCL's cash flow from operating activities (CFO) during FY18 stood at Rs 111 billion, an improvement of 22.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -71 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -40 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -143 million from the Rs -14 billion net cash flows seen during FY17.

BPCL 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 90,411 110,684 22.4%
Cash Flow from Investing Activities Rs m -152,739 -70,655 -
Cash Flow from Financing Activities Rs m 48,040 -40,172 -
Net Cash Flow Rs m -14,289 -143 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BPCL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.8, an decline from the EPS of Rs 65.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 358.1, stands at 8.2 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 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.8 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 1,391.6 1,198.7
TTM Earnings per share Rs 65.7 49.8
Diluted earnings per share Rs 43.9 45.2
Price to Cash Flow x 4.9 6.8
TTM P/E ratio x 5.5 8.2
Price / Book Value ratio x 2.8 3.1
Market Cap Rs m 517,801 776,183
Dividends per share (Unadj.) Rs 32.5 21.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BPCL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.8x 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 deteriorated and stood at 11.9x during FY18, from 19.3x 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 declined and down at 26.7% during FY18, from 30.8% 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 declined and down at 23.4% during FY18, from 26.6% 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 declined and down at 9.1% during FY18, from 9.4% 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 0.8 0.9
Debtors’ Days Days 9 8
Interest coverage x 19.3 11.9
Debt to equity ratio x 0.8 0.8
Return on assets % 9.4 9.1
Return on equity % 30.8 26.7
Return on capital employed % 26.6 23.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

BPCL Share Price Performance

Over the last one year, BPCL share price has moved up from Rs 509.7 to Rs 358.1, registering a loss of Rs 151.7 or around 29.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,859.4 (down 0.8%). Over the last one year it has moved down from 14,879.5 to 14,859.4, a gain of 20 points (down 0.1%).

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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

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