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

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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

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	-

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

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

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)

Read: Latest Annual Report Analysis of BPCL