CASTROL INDIA 2019-20 Annual Report Analysis

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CASTROL INDIA 2019-20 Annual Report Analysis
Fri, 9 Jul

CASTROL INDIA has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

CASTROL INDIA Income Statement Analysis

  • Operating income during the year fell 22.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 29.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.2% in CY20 as against 29.7% in CY19.
  • Depreciation charges increased by 24.2% and finance costs increased by 249.6% YoY, respectively.
  • Other income declined by 4.2% YoY.
  • Net profit for the year declined by 29.5% YoY.
  • Net profit margins during the year declined from 21.0% in CY19 to 19.1% in CY20.

CASTROL INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Net Sales Rs m 38,768 29,969 -22.7%
Other income Rs m 648 620 -4.2%
Total Revenues Rs m 39,416 30,590 -22.4%
Gross profit Rs m 11,531 8,141 -29.4%
Depreciation Rs m 697 866 24.2%
Interest Rs m 12 42 249.6%
Profit before tax Rs m 11,469 7,854 -31.5%
Tax Rs m 3,195 2,024 -36.7%
Profit after tax Rs m 8,274 5,829 -29.5%
Gross profit margin % 29.7 27.2
Effective tax rate % 27.9 25.8
Net profit margin % 21.0 19.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CASTROL INDIA Balance Sheet Analysis

  • The company's current liabilities during CY20 stood at Rs 9 billion as compared to Rs 8 billion in CY19, thereby witnessing an increase of 12.6%.
  • Current assets rose 6% and stood at Rs 19 billion, while fixed assets rose 16% and stood at Rs 4 billion in CY20.
  • Overall, the total assets and liabilities for CY20 stood at Rs 23 billion as against Rs 22 billion during CY19, thereby witnessing a growth of 7%.

CASTROL INDIA Balance Sheet as on December 2020

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Networth Rs m 13,479 13,905 3.2
 
Current Liabilities Rs m 8,404 9,466 12.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 21,703 23,313 7.4
 
Current assets Rs m 18,355 19,436 5.9
Fixed Assets Rs m 3,348 3,876 15.8
Total Assets Rs m 21,703 23,313 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CASTROL INDIA Cash Flow Statement Analysis

  • CASTROL INDIA's cash flow from operating activities (CFO) during CY20 stood at Rs 9 billion, an improvement of 1.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY20 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY20 stood at Rs -6 billion, an improvement of 10% on a YoY basis.
  • Overall, net cash flows for the company during CY20 stood at Rs 1 billion from the Rs -2 billion net cash flows seen during CY19.

CASTROL INDIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Dec-19 Dec-20
Cash Flow from Operating Activities Rs m 8,795 8,928 1.5%
Cash Flow from Investing Activities Rs m -4,483 -2,009 -
Cash Flow from Financing Activities Rs m -6,277 -5,643 -
Net Cash Flow Rs m -1,965 1,275 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CASTROL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an decline from the EPS of Rs 8.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 144.2, stands at 20.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 9.0 times, while the price to sales ratio stands at 4.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Sales per share (Unadj.) Rs 39.2 30.3
TTM Earnings per share Rs 8.4 5.9
Diluted earnings per share Rs 8.4 5.9
Price to Cash Flow x 15.9 21.3
TTM P/E ratio x 20.3 20.3
Price / Book Value ratio x 10.5 9.0
Market Cap Rs m 142,631 142,631
Dividends per share (Unadj.) Rs 5.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CASTROL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.1x during CY20, from 2.2x during CY19. 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 189.8x during CY20, from 964.8x during CY19. 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 41.9% during CY20, from 61.4% during CY20. 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 56.8% during CY20, from 85.2% during CY19. 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 25.2% during CY20, from 38.2% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Current ratio x 2.2 2.1
Debtors’ Days Days 45 22
Interest coverage x 964.8 189.8
Debt to equity ratio x 0.0 0.0
Return on assets % 38.2 25.2
Return on equity % 61.4 41.9
Return on capital employed % 85.2 56.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 122.0 to Rs 144.2, registering a gain of Rs 22.2 or around 18.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,859.4 (down 0.5%). Over the last one year it has moved up from 12,785.0 to 15,859.4, a gain of 3,074 points (up 24.0%).

Overall, the S&P BSE SENSEX is up 42.9% over the year.

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

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Related Views on News

CASTROL INDIA Announces Quarterly Results (1QFY22); Net Profit Up 114.1% (Quarterly Result Update)

Aug 5, 2021 | Updated on Aug 5, 2021

For the quarter ended June 2021, CASTROL INDIA has posted a net profit of Rs 1 bn (up 114.1% YoY). Sales on the other hand came in at Rs 9 bn (up 81.3% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA Announces Quarterly Results (4QFY21); Net Profit Up 94.6% (Quarterly Result Update)

Jul 9, 2021 | Updated on Jul 9, 2021

For the quarter ended March 2021, CASTROL INDIA has posted a net profit of Rs 2 bn (up 94.6% YoY). Sales on the other hand came in at Rs 11 bn (up 65.5% YoY). Read on for a complete analysis of CASTROL INDIA's quarterly results.

CASTROL INDIA 2018-19 Annual Report Analysis (Annual Result Update)

Dec 28, 2020 | Updated on Dec 28, 2020

Here's an analysis of the annual report of CASTROL INDIA for 2018-19. 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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