CASTROL INDIA 2018-19 Annual Report Analysis

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CASTROL INDIA 2018-19 Annual Report Analysis
Mon, 28 Dec

CASTROL INDIA has announced its results for the year ended December 2019. Let us have a look at the detailed performance review of the company during FY18-19.

CASTROL INDIA Income Statement Analysis

  • Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.7% in CY19 as against 27.4% in CY18.
  • Depreciation charges increased by 25.5% and finance costs increased by 9.2% YoY, respectively.
  • Other income declined by 23.2% YoY.
  • Net profit for the year grew by 16.8% YoY.
  • Net profit margins during the year grew from 17.8% in CY18 to 21.0% in CY19.

CASTROL INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Dec-18* 12 Dec-19* % Change
Net Sales Rs m 39,046 38,768 -0.7%
Other income Rs m 843 648 -23.2%
Total Revenues Rs m 39,889 39,416 -1.2%
Gross profit Rs m 10,708 11,531 7.7%
Depreciation Rs m 556 697 25.5%
Interest Rs m 11 12 9.2%
Profit before tax Rs m 10,984 11,469 4.4%
Tax Rs m 3,901 3,195 -18.1%
Profit after tax Rs m 7,084 8,274 16.8%
Gross profit margin % 27.4 29.7
Effective tax rate % 35.5 27.9
Net profit margin % 17.8 21.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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CASTROL INDIA Balance Sheet Analysis

  • The company's current liabilities during CY19 down at Rs 8 billion as compared to Rs 9 billion in CY18, thereby witnessing an decrease of -9.2%.
  • Current assets rose 6% and stood at Rs 18 billion, while fixed assets rose 3% and stood at Rs 2 billion in CY19.
  • Overall, the total assets and liabilities for CY19 stood at Rs 22 billion as against Rs 21 billion during CY18, thereby witnessing a growth of 6%.

CASTROL INDIA Balance Sheet as on December 2019

No. of Mths Year Ending 12 Dec-18* 12 Dec-19* % Change
Networth Rs m 11,657 13,670 17.3
 
Current Liabilities Rs m 9,252 8,404 -9.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 21,068 22,288 5.8
 
Current assets Rs m 17,266 18,355 6.3
Fixed Assets Rs m 2,211 2,270 2.7
Total Assets Rs m 21,068 22,288 5.8
* 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 CY19 stood at Rs 9 billion, an improvement of 60.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY19 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY19 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during CY19 stood at Rs -2 billion from the Rs 482 million net cash flows seen during CY18.

CASTROL INDIA Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Dec-18 Dec-19
Cash Flow from Operating Activities Rs m 5,495 8,795 60.1%
Cash Flow from Investing Activities Rs m 661 -4,483 -
Cash Flow from Financing Activities Rs m -5,674 -6,277 -
Net Cash Flow Rs m 482 -1,965 -
* 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 8.4, an improvement from the EPS of Rs 7.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 123.1, stands at 18.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.3 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-18* 12 Dec-19*
Sales per share (Unadj.) Rs 39.5 39.2
TTM Earnings per share Rs 7.2 8.4
Diluted earnings per share Rs 7.2 8.4
Price to Cash Flow x 15.9 13.6
TTM P/E ratio x 18.3 18.3
Price / Book Value ratio x 14.8 10.3
Market Cap Rs m 121,711 121,711
Dividends per share (Unadj.) Rs 5.0 5.5
* 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 2.2x during CY19, from 1.9x during CY18. 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 964.8x during CY19, from 1,008.7x during CY18. 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 60.5% during CY19, from 60.8% during CY19. 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 84.0% during CY19, from 94.3% during CY18. 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 improved and stood at 37.2% during CY19, from 33.7% during CY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-18* 12 Dec-19*
Current ratio x 1.9 2.2
Debtors’ Days Days 37 45
Interest coverage x 1,008.7 964.8
Debt to equity ratio x 0.0 0.0
Return on assets % 33.7 37.2
Return on equity % 60.8 60.5
Return on capital employed % 94.3 84.0
* 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 down from Rs 128.0 to Rs 123.1, registering a loss of Rs 5.0 or around 3.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,115.7 (up 1.1%). Over the last one year it has moved down from 14,799.1 to 14,115.7, a loss of 683 points (down 4.6%).

Overall, the S&P BSE SENSEX is up 13.4% over the year.

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

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CASTROL INDIA Announces Quarterly Results (3QFY21); Net Profit Down 30.8% (Quarterly Result Update)

Feb 3, 2021 | Updated on Feb 3, 2021

For the quarter ended December 2020, CASTROL INDIA has posted a net profit of Rs 2 bn (down 30.8% YoY). Sales on the other hand came in at Rs 9 bn (down 7.6% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA Announces Quarterly Results (2QFY21); Net Profit Up 8.6% (Quarterly Result Update)

Oct 29, 2020 | Updated on Oct 29, 2020

For the quarter ended September 2020, CASTROL INDIA has posted a net profit of Rs 2 bn (up 8.6% YoY). Sales on the other hand came in at Rs 9 bn (up 4.0% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA 2017-18 Annual Report Analysis (Annual Result Update)

Apr 30, 2019 | Updated on Apr 30, 2019

Here's an analysis of the annual report of CASTROL INDIA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of CASTROL INDIA. Also includes updates on the valuation of CASTROL INDIA.

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