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BPCL 2021-22 Annual Report Analysis
Thu, 4 Aug

BPCL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BPCL Income Statement Analysis

  • Operating income during the year rose 67.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 23.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY22 as against 17.0% in FY21.
  • Depreciation charges increased by 25.4% and finance costs increased by 31.9% YoY, respectively.
  • Other income declined by 9.3% YoY.
  • Net profit for the year declined by 42.5% YoY.
  • Net profit margins during the year declined from 11.3% in FY21 to 3.9% in FY22.

BPCL Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 1,560,672 2,610,125 67.2%
Other income Rs m 25,041 22,711 -9.3%
Total Revenues Rs m 1,585,713 2,632,836 66.0%
Gross profit Rs m 265,629 202,699 -23.7%
Depreciation Rs m 43,342 54,344 25.4%
Interest Rs m 19,753 26,056 31.9%
Profit before tax Rs m 227,576 145,010 -36.3%
Tax Rs m 51,122 43,552 -14.8%
Profit after tax Rs m 176,454 101,458 -42.5%
Gross profit margin % 17.0 7.8
Effective tax rate % 22.5 30.0
Net profit margin % 11.3 3.9
* 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 FY22 stood at Rs 831 billion as compared to Rs 577 billion in FY21, thereby witnessing an increase of 44.0%.
  • Long-term debt stood at Rs 364 billion as compared to Rs 357 billion during FY21, a growth of 1.7%.
  • Current assets rose 19% and stood at Rs 620 billion, while fixed assets rose 15% and stood at Rs 1,255 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 1,875 billion as against Rs 1,610 billion during FY21, thereby witnessing a growth of 16%.

BPCL Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 526,986 519,056 -1.5
 
Current Liabilities Rs m 577,042 830,685 44.0
Long-term Debt Rs m 357,402 363,589 1.7
Total Liabilities Rs m 1,609,780 1,875,286 16.5
 
Current assets Rs m 520,749 619,994 19.1
Fixed Assets Rs m 1,089,032 1,255,293 15.3
Total Assets Rs m 1,609,780 1,875,286 16.5
* 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 FY22 stood at Rs 203 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -81 billion, an improvement of 228.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -177 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -55 billion from the Rs 70 billion net cash flows seen during FY21.

BPCL Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 234,551 203,356 -13.3%
Cash Flow from Investing Activities Rs m -24,740 -81,376 -
Cash Flow from Financing Activities Rs m -139,809 -176,717 -
Net Cash Flow Rs m 70,002 -54,736 -
* 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 47.6, an decline from the EPS of Rs 84.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 333.3, stands at 7.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 745.7 1,225.7
TTM Earnings per share Rs 84.3 47.6
Diluted earnings per share Rs 81.3 46.8
Price to Cash Flow x 4.2 5.7
TTM P/E ratio x 5.3 7.1
Price / Book Value ratio x 1.5 1.7
Market Cap Rs m 805,196 887,983
Dividends per share (Unadj.) Rs 79.0 16.0
* 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 deteriorated and stood at 0.7x during FY22, from 0.9x during FY21. 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 6.6x during FY22, from 12.5x during FY21. 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 19.5% during FY22, from 33.5% during FY22. 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 19.4% during FY22, from 28.0% during FY21. 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 FY22, from 12.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 0.9 0.7
Debtors’ Days Days 2 1
Interest coverage x 12.5 6.6
Debt to equity ratio x 0.7 0.7
Return on assets % 12.2 6.8
Return on equity % 33.5 19.5
Return on capital employed % 28.0 19.4
* 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 457.2 to Rs 333.3, registering a loss of Rs 123.9 or around 27.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,416.0 (up 0.4%). Over the last one year it has moved up from 15,777.0 to 19,416.0, a gain of 3,639 points (up 23.1%).

Overall, the S&P BSE SENSEX is up 10.0% 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 308.5 per share. You can check out the latest share price performance of BPCL here...

What was the revenue of BPCL in FY22? How does it compare to earlier years?

The revenues of BPCL stood at Rs 2,632,836 m in FY22, which was up 66.0% compared to Rs 1,585,713 m reported in FY21.

BPCL's revenue has grown from Rs 1,941,708 m in FY18 to Rs 2,632,836 m in FY22.

Over the past 5 years, the revenue of BPCL has grown at a CAGR of 7.9%.

What was the net profit of BPCL in FY22? How does it compare to earlier years?

The net profit of BPCL stood at Rs 101,458 m in FY22, which was down -42.5% compared to Rs 176,454 m reported in FY21.

This compares to a net profit of Rs 22,651 m in FY20 and a net profit of Rs 75,905 m in FY19.

Over the past 5 years, BPCL net profit has grown at a CAGR of 4.5%.

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 FY22 and stood at Rs 203,356 m as compared to Rs 234,551 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -81,376 m as compared to Rs -24,740 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -176,717 m as compared to Rs -139,809 m in FY21.

Here's the cash flow statement of BPCL for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations110,684101,57278,810234,551203,356
From Investments-70,655-104,512-111,351-24,740-81,376
From Financial Activity-42,1772,07035,832-139,809-176,717
Net Cashflow-2,149-8703,29170,002-54,736

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 7.8% in FY22 as against 17.0% in FY21.
  • Net profit margins declined from 11.3% in FY21 to 3.9% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.7 as compared to 0.7 in FY21.

Here's the ratio/financial analysis of BPCL for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)7.95.92.917.07.8
Net Profit Margin (%)4.43.00.911.33.9
Debt to Equity Ratio (x)0.80.91.00.70.7

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