CASTROL INDIA 2017-18 Annual Report Analysis

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CASTROL INDIA 2017-18 Annual Report Analysis
Tue, 30 Apr

CASTROL INDIA has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

CASTROL INDIA Income Statement Analysis

  • Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.4% in CY18 as against 28.8% in CY17.
  • Depreciation charges increased by 22.1% and finance costs decreased by 9.2% YoY, respectively.
  • Other income grew by 0.8% YoY.
  • Net profit for the year grew by 2.4% YoY.
  • Net profit margins during the year declined from 18.9% in CY17 to 17.8% in CY18.

CASTROL INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Net Sales Rs m 35,843 39,046 8.9%
Other income Rs m 837 843 0.8%
Total Revenues Rs m 36,680 39,889 8.7%
Gross profit Rs m 10,331 10,708 3.6%
Depreciation Rs m 455 556 22.1%
Interest Rs m 12 11 -9.2%
Profit before tax Rs m 10,701 10,984 2.6%
Tax Rs m 3,783 3,901 3.1%
Profit after tax Rs m 6,918 7,084 2.4%
Gross profit margin % 28.8 27.4
Effective tax rate % 35.3 35.5
Net profit margin % 18.9 17.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CASTROL INDIA Balance Sheet Analysis

  • The company's current liabilities during CY18 down at Rs 9 billion as compared to Rs 9 billion in CY17, thereby witnessing an decrease of -1.7%.
  • Current assets rose 10% and stood at Rs 17 billion, while fixed assets rose 13% and stood at Rs 2 billion in CY18.
  • Overall, the total assets and liabilities for CY18 stood at Rs 21 billion as against Rs 20 billion during CY17, thereby witnessing a growth of 7%.

CASTROL INDIA Balance Sheet as on December 2018

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Networth Rs m 10,202 11,657 14.3
 
Current Liabilities Rs m 9,409 9,252 -1.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 19,770 21,068 6.6
 
Current assets Rs m 15,717 17,266 9.9
Fixed Assets Rs m 1,962 2,211 12.7
Total Assets Rs m 19,770 21,068 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CASTROL INDIA Cash Flow Statement Analysis

  • CASTROL INDIA's cash flow from operating activities (CFO) during CY18 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY18 stood at Rs 661 million on a YoY basis.
  • Cash flow from financial activities (CFF) during CY18 stood at Rs -6 billion, an improvement of 14% on a YoY basis.
  • Overall, net cash flows for the company during CY18 stood at Rs 482 million from the Rs 1 billion net cash flows seen during CY17.

CASTROL INDIA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Dec-17 Dec-18
Cash Flow from Operating Activities Rs m 6,083 5,495 -9.7%
Cash Flow from Investing Activities Rs m 1,514 661 -56.3%
Cash Flow from Financing Activities Rs m -6,567 -5,674 -
Net Cash Flow Rs m 1,039 482 -53.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CASTROL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an improvement from the EPS of Rs 7.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 152.0, stands at 21.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 14.8 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-17* 12 Dec-18*
Sales per share (Unadj.) Rs 36.2 39.5
TTM Earnings per share Rs 7.0 7.2
Diluted earnings per share Rs 7.0 7.2
Price to Cash Flow x 20.4 19.7
TTM P/E ratio x 21.2 21.2
Price / Book Value ratio x 31.3 14.8
Market Cap Rs m 150,297 150,297
Dividends per share (Unadj.) Rs 7.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CASTROL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during CY18, from 1.7x during CY17. 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 improved and stood at 1,008.7x during CY18, from 892.7x during CY17. 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 60.8% during CY18, from 67.8% during CY18. 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 94.3% during CY18, from 105.0% during CY17. 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 33.7% during CY18, from 35.1% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-17* 12 Dec-18*
Current ratio x 1.7 1.9
Debtors’ Days Days 29 37
Interest coverage x 892.7 1,008.7
Debt to equity ratio x 0.0 0.0
Return on assets % 35.1 33.7
Return on equity % 67.8 60.8
Return on capital employed % 105.0 94.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CASTROL INDIA has performed over the last 5 years, please visit here.

CASTROL INDIA Share Price Performance

Over the last one year, CASTROL INDIA share price has moved up from Rs 194.5 to Rs 152.0, registering a loss of Rs 42.5 or around 21.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,171.8 (down 0.1%). Over the last one year it has moved up from 14,429.5 to 15,171.8, a gain of 742 points (up 5.1%).

Overall, the S&P BSE SENSEX is up 11.8% over the year.

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

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1 Responses to "CASTROL INDIA 2017-18 Annual Report Analysis"

Hematbhai kotadiya

Jun 24, 2019

View of Castrol is best

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Related Views on News

CASTROL INDIA Announces Quarterly Results (1QFY21); Net Profit Down 64.2% (Quarterly Result Update)

Aug 26, 2020 | Updated on Aug 26, 2020

For the quarter ended June 2020, CASTROL INDIA has posted a net profit of Rs 654 m (down 64.2% YoY). Sales on the other hand came in at Rs 5 bn (down 52.8% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA Announces Quarterly Results (3QFY20); Net Profit Up 28.0% (Quarterly Result Update)

Feb 1, 2020 | Updated on Feb 1, 2020

For the quarter ended December 2019, CASTROL INDIA has posted a net profit of Rs 3 bn (up 28.0% YoY). Sales on the other hand came in at Rs 10 bn (down 2.1% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

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