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BPCL 2018-19 Annual Report Analysis
Sun, 31 Mar

BPCL 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.

BPCL Income Statement Analysis

  • Operating income during the year rose 32.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY19 as against 7.9% in FY18.
  • Depreciation charges increased by 18.5% and finance costs increased by 48.8% YoY, respectively.
  • Other income grew by 12.0% YoY.
  • Net profit for the year declined by 10.7% YoY.
  • Net profit margins during the year declined from 4.4% in FY18 to 3.0% in FY19.

BPCL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 1,923,522 2,555,720 32.9%
Other income Rs m 18,186 20,375 12.0%
Total Revenues Rs m 1,941,708 2,576,096 32.7%
Gross profit Rs m 151,368 151,122 -0.2%
Depreciation Rs m 28,850 34,178 18.5%
Interest Rs m 11,857 17,640 48.8%
Profit before tax Rs m 128,846 119,681 -7.1%
Tax Rs m 43,816 43,775 -0.1%
Profit after tax Rs m 85,030 75,905 -10.7%
Gross profit margin % 7.9 5.9
Effective tax rate % 34.0 36.6
Net profit margin % 4.4 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BPCL Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 531 billion as compared to Rs 458 billion in FY18, thereby witnessing an increase of 15.9%.
  • Long-term debt stood at Rs 343 billion as compared to Rs 289 billion during FY18, a growth of 18.7%.
  • Current assets rose 20% and stood at Rs 488 billion, while fixed assets rose 11% and stood at Rs 881 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 1,369 billion as against Rs 1,204 billion during FY18, thereby witnessing a growth of 14%.

BPCL Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 366,186 387,647 5.9
 
Current Liabilities Rs m 458,102 531,097 15.9
Long-term Debt Rs m 289,043 343,156 18.7
Total Liabilities Rs m 1,203,561 1,369,261 13.8
 
Current assets Rs m 406,015 487,817 20.1
Fixed Assets Rs m 797,546 881,445 10.5
Total Assets Rs m 1,203,561 1,369,261 13.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BPCL Cash Flow Statement Analysis

  • BPCL's cash flow from operating activities (CFO) during FY19 stood at Rs 102 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -105 billion, an improvement of 47.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 2 billion, an improvement of 105% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -870 million from the Rs -2 billion net cash flows seen during FY18.

BPCL 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 110,684 101,572 -8.2%
Cash Flow from Investing Activities Rs m -70,655 -104,512 -
Cash Flow from Financing Activities Rs m -42,177 2,070 -
Net Cash Flow Rs m -2,149 -870 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BPCL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.6, an decline from the EPS of Rs 43.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 396.4, stands at 12.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.2 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 978.0 1,299.4
TTM Earnings per share Rs 43.2 38.6
Diluted earnings per share Rs 39.2 35.0
Price to Cash Flow x 8.2 6.2
TTM P/E ratio x 11.7 12.1
Price / Book Value ratio x 3.1 1.8
Market Cap Rs m 1,153,182 682,507
Dividends per share (Unadj.) Rs 21.0 19.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BPCL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY19, from 0.9x 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 deteriorated and stood at 7.8x during FY19, from 11.9x 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 declined and down at 19.6% during FY19, from 23.2% 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 declined and down at 18.8% during FY19, from 21.5% 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 declined and down at 6.8% during FY19, from 8.1% 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 0.9 0.9
Debtors’ Days Days 1 1
Interest coverage x 11.9 7.8
Debt to equity ratio x 0.8 0.9
Return on assets % 8.1 6.8
Return on equity % 23.2 19.6
Return on capital employed % 21.5 18.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 428.0 to Rs 396.4, registering a loss of Rs 31.6 or around 7.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,269.7 (up 0.9%). Over the last one year it has moved up from 14,614.4 to 15,269.7, a gain of 655 points (up 4.5%).

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

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

Annual Report FAQs

What is the current share price of BPCL?

BPCL currently trades at Rs 603.0 per share. You can check out the latest share price performance of BPCL here...

What was the revenue of BPCL in FY19? How does it compare to earlier years?

The revenues of BPCL stood at Rs 2,576,096 m in FY19, which was up 32.7% compared to Rs 1,941,708 m reported in FY18.

BPCL's revenue has grown from Rs 2,505,524 m in FY14 to Rs 2,576,096 m in FY19.

Over the past 6 years, the revenue of BPCL has grown at a CAGR of 0.6%.

What was the net profit of BPCL in FY19? How does it compare to earlier years?

The net profit of BPCL stood at Rs 75,905 m in FY19, which was down -10.7% compared to Rs 85,030 m reported in FY18.

This compares to a net profit of Rs 85,636 m in FY17 and a net profit of Rs 77,379 m in FY16.

Over the past 6 years, BPCL net profit has grown at a CAGR of 13.3%.

What does the cash flow statement of BPCL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BPCL reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 101,572 m as compared to Rs 110,684 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -104,512 m as compared to Rs -70,655 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 2,070 m as compared to Rs -42,177 m in FY18.

Here's the cash flow statement of BPCL for the past 6 years.

(Rs m)FY14FY16FY17FY18FY19
From Operations84,041111,19090,411110,684101,572
From Investments-42,859-92,327-152,739-70,655-104,512
From Financial Activity-62,437-13,31648,040-42,1772,070
Net Cashflow-21,2425,548-14,289-2,149-870

What does the Key Ratio analysis of BPCL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BPCL reveals:

  • Operating profit margins witnessed a fall and stood at 5.9% in FY19 as against 7.9% in FY18.
  • Net profit margins declined from 4.4% in FY18 to 3.0% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.9 as compared to 0.8 in FY18.

Here's the ratio/financial analysis of BPCL for the past 6 years.

 FY14FY16FY17FY18FY19
Operating Profit Margin (%)3.38.38.67.95.9
Net Profit Margin (%)1.64.95.44.43.0
Debt to Equity Ratio (x)0.60.80.80.80.9

Read: Latest Annual Report Analysis of BPCL

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