BPCL 2019-20 Annual Report Analysis

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BPCL 2019-20 Annual Report Analysis
Thu, 22 Oct

BPCL has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BPCL Income Statement Analysis

  • Operating income during the year fell 4.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 44.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.9% in FY20 as against 5.1% in FY19.
  • Depreciation charges increased by 19.4% and finance costs increased by 49.5% YoY, respectively.
  • Other income declined by 5.3% YoY.
  • Net profit for the year declined by 57.0% YoY.
  • Net profit margins during the year declined from 2.8% in FY19 to 1.3% in FY20.

BPCL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 2,982,256 2,845,719 -4.6%
Other income Rs m 20,375 19,293 -5.3%
Total Revenues Rs m 3,002,631 2,865,012 -4.6%
Gross profit Rs m 151,122 83,490 -44.8%
Depreciation Rs m 34,178 40,801 19.4%
Interest Rs m 17,640 26,370 49.5%
Profit before tax Rs m 119,681 35,613 -70.2%
Tax Rs m 43,775 -142 -100.3%
Profit after tax Rs m 85,279 36,658 -57.0%
Gross profit margin % 5.1 2.9
Effective tax rate % 36.6 -0.4
Net profit margin % 2.8 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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BPCL Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 602 billion as compared to Rs 531 billion in FY19, thereby witnessing an increase of 13.4%.
  • Long-term debt stood at Rs 439 billion as compared to Rs 343 billion during FY19, a growth of 27.8%.
  • Current assets fell 11% and stood at Rs 432 billion, while fixed assets rose 11% and stood at Rs 697 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 1,509 billion as against Rs 1,369 billion during FY19, thereby witnessing a growth of 10%.

BPCL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 387,647 365,323 -5.8
 
Current Liabilities Rs m 531,097 602,215 13.4
Long-term Debt Rs m 343,156 438,531 27.8
Total Liabilities Rs m 1,369,304 1,508,636 10.2
 
Current assets Rs m 487,678 432,307 -11.4
Fixed Assets Rs m 629,693 697,424 10.8
Total Assets Rs m 1,369,304 1,508,636 10.2
* 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 FY20 stood at Rs 80 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -112 billion, an improvement of 7.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 36 billion, an improvement of 1,631% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 3 billion from the Rs -870 million net cash flows seen during FY19.

BPCL Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 101,572 79,735 -21.5%
Cash Flow from Investing Activities Rs m -104,512 -112,276 -
Cash Flow from Financing Activities Rs m 2,070 35,832 1,630.7%
Net Cash Flow Rs m -870 3,291 -
* 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 18.6, an decline from the EPS of Rs 43.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 344.8, stands at 20.3 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 11.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 1,516.2 1,446.8
TTM Earnings per share Rs 43.4 18.6
Diluted earnings per share Rs 39.3 16.9
Price to Cash Flow x 6.2 11.8
TTM P/E ratio x 18.4 20.3
Price / Book Value ratio x 1.8 2.2
Market Cap Rs m 678,180 747,460
Dividends per share (Unadj.) Rs 19.0 16.5
* 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 deteriorated and stood at 0.7x during FY20, from 0.9x during FY19. 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 2.4x during FY20, from 7.8x during FY19. 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 10.0% during FY20, from 22.0% during FY20. 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 7.8% during FY20, from 20.1% during FY19. 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 4.2% during FY20, from 7.5% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.9 0.7
Debtors’ Days Days 8 7
Interest coverage x 7.8 2.4
Debt to equity ratio x 0.9 1.2
Return on assets % 7.5 4.2
Return on equity % 22.0 10.0
Return on capital employed % 20.1 7.8
* 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 down from Rs 534.0 to Rs 344.8, registering a loss of Rs 189.2 or around 35.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 12,125.5 (up 0.5%). Over the last one year it has moved down from 15,432.3 to 12,125.5, a loss of 3,307 points (down 21.4%).

Overall, the S&P BSE SENSEX is up 4.1% over the year.

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

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