BPCL 2022-23 Annual Report Analysis

Sun, 6 Aug

BPCL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BPCL Income Statement Analysis

• Operating income during the year rose 58.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.8% in FY23 as against 8.4% in FY22.
• Depreciation charges increased by 17.2% and finance costs increased by 43.7% YoY, respectively.
• Other income declined by 34.0% YoY.
• Net profit for the year declined by 81.8% YoY.
• Net profit margins during the year declined from 4.5% in FY22 to 0.5% in FY23.

BPCL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,610,125	4,128,271	58.2%
Other income	Rs m	22,711	14,990	-34.0%
Total Revenues	Rs m	2,632,836	4,143,261	57.4%
Gross profit	Rs m	218,056	114,363	-47.6%
Depreciation	Rs m	54,344	63,688	17.2%
Interest	Rs m	26,056	37,454	43.7%
Profit before tax	Rs m	160,367	28,211	-82.4%
Tax	Rs m	43,552	6,901	-84.2%
Profit after tax	Rs m	116,815	21,311	-81.8%
Gross profit margin	%	8.4	2.8
Effective tax rate	%	27.2	24.5
Net profit margin	%	4.5	0.5

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BPCL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 748 billion as compared to Rs 831 billion in FY22, thereby witnessing an decrease of -10.0%.
• Long-term debt stood at Rs 414 billion as compared to Rs 364 billion during FY22, a growth of 13.8%.
• Current assets fell 10% and stood at Rs 560 billion, while fixed assets rose 5% and stood at Rs 1,321 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1,881 billion as against Rs 1,875 billion during FY22, thereby witnessing a growth of 0%.

BPCL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	519,056	535,224	3.1
Current Liabilities	Rs m	831,269	748,417	-10.0
Long-term Debt	Rs m	363,589	413,694	13.8
Total Liabilities	Rs m	1,875,286	1,881,088	0.3
Current assets	Rs m	619,820	559,961	-9.7
Fixed Assets	Rs m	1,255,340	1,320,958	5.2
Total Assets	Rs m	1,875,286	1,881,088	0.3

BPCL Cash Flow Statement Analysis

• BPCL's cash flow from operating activities (CFO) during FY23 stood at Rs 125 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -78 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -44 billion, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs -55 billion net cash flows seen during FY22.

BPCL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	203,356	124,656	-38.7%
Cash Flow from Investing Activities	Rs m	-81,376	-78,064	-
Cash Flow from Financing Activities	Rs m	-176,717	-44,020	-
Net Cash Flow	Rs m	-54,736	2,572	-

Current Valuations for BPCL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an decline from the EPS of Rs 54.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 360.4, stands at 4.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,225.7	1,938.6
TTM Earnings per share	Rs	54.9	10.0
Diluted earnings per share	Rs	53.9	9.8
Price to Cash Flow	x	4.6	8.6
TTM P/E ratio	x	7.7	4.7
Price / Book Value ratio	x	1.7	1.4
Market Cap	Rs m	887,983	731,255
Dividends per share (Unadj.)	Rs	16.0	4.0

Ratio Analysis for BPCL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY23, from 0.7x during FY22. 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 1.8x during FY23, from 7.2x during FY22. 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 4.0% during FY23, from 22.5% during FY23. 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 6.9% during FY23, from 21.1% during FY22. 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 3.1% during FY23, from 7.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.7	0.7
Debtors’ Days	Days	1	1
Interest coverage	x	7.2	1.8
Debt to equity ratio	x	0.7	0.8
Return on assets	%	7.6	3.1
Return on equity	%	22.5	4.0
Return on capital employed	%	21.1	6.9

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 336.3 to Rs 360.4, registering a gain of Rs 24.1 or around 7.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,909.6 (down 0.1%). Over the last one year it has moved down from 19,336.6 to 18,909.6, a loss of 427 points (down 2.2%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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