CASTROL INDIA 2020-21 Annual Report Analysis

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CASTROL INDIA 2020-21 Annual Report Analysis
Fri, 31 Dec

CASTROL INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

CASTROL INDIA Income Statement Analysis

  • Operating income during the year rose 39.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 30.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.4% in CY21 as against 27.2% in CY20.
  • Depreciation charges decreased by 4.5% and finance costs decreased by 42.1% YoY, respectively.
  • Other income declined by 21.9% YoY.
  • Net profit for the year grew by 30.0% YoY.
  • Net profit margins during the year declined from 19.5% in CY20 to 18.1% in CY21.

CASTROL INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Dec-20* 12 Dec-21* % Change
Net Sales Rs m 29,969 41,921 39.9%
Other income Rs m 620 484 -21.9%
Total Revenues Rs m 30,590 42,405 38.6%
Gross profit Rs m 8,141 10,660 30.9%
Depreciation Rs m 866 827 -4.5%
Interest Rs m 42 24 -42.1%
Profit before tax Rs m 7,854 10,293 31.1%
Tax Rs m 2,024 2,712 34.0%
Profit after tax Rs m 5,829 7,581 30.0%
Gross profit margin % 27.2 25.4
Effective tax rate % 25.8 26.3
Net profit margin % 19.5 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



One Smallcap Stock: Showing All Signs of a Potential Crorepati Stock

CASTROL INDIA Balance Sheet Analysis

  • The company's current liabilities during CY21 stood at Rs 10 billion as compared to Rs 9 billion in CY20, thereby witnessing an increase of 9.3%.
  • Current assets rose 15% and stood at Rs 22 billion, while fixed assets rose 0% and stood at Rs 4 billion in CY21.
  • Overall, the total assets and liabilities for CY21 stood at Rs 26 billion as against Rs 23 billion during CY20, thereby witnessing a growth of 13%.

CASTROL INDIA Balance Sheet as on December 2021

No. of Mths Year Ending 12 Dec-20* 12 Dec-21* % Change
Networth Rs m 13,905 16,038 15.3
 
Current Liabilities Rs m 9,466 10,343 9.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 23,313 26,327 12.9
 
Current assets Rs m 19,436 22,439 15.5
Fixed Assets Rs m 3,876 3,887 0.3
Total Assets Rs m 23,313 26,327 12.9
* 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 CY21 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY21 stood at Rs -831 million on a YoY basis.
  • Cash flow from financial activities (CFF) during CY21 stood at Rs -6 billion, an improvement of 1% on a YoY basis.
  • Overall, net cash flows for the company during CY21 stood at Rs -105 million from the Rs 1 billion net cash flows seen during CY20.

CASTROL INDIA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Dec-20 Dec-21
Cash Flow from Operating Activities Rs m 8,928 6,302 -29.4%
Cash Flow from Investing Activities Rs m -2,009 -831 -
Cash Flow from Financing Activities Rs m -5,643 -5,576 -
Net Cash Flow Rs m 1,275 -105 -
* 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 7.7, an improvement from the EPS of Rs 5.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 107.5, stands at 14.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 3.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 16.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-20* 12 Dec-21*
Sales per share (Unadj.) Rs 30.3 42.4
TTM Earnings per share Rs 5.9 7.7
Diluted earnings per share Rs 5.9 7.7
Price to Cash Flow x 14.5 16.0
TTM P/E ratio x 16.0 14.3
Price / Book Value ratio x 9.0 8.4
Market Cap Rs m 124,481 134,842
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 improved and stood at 2.2x during CY21, from 2.1x during CY20. 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 428.1x during CY21, from 189.8x during CY20. 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 improved and stood at 47.3% during CY21, from 41.9% during CY21. 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 improved and stood at 64.3% during CY21, from 56.8% during CY20. 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 28.9% during CY21, from 25.2% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-20* 12 Dec-21*
Current ratio x 2.1 2.2
Debtors’ Days Days 2 3
Interest coverage x 189.8 428.1
Debt to equity ratio x 0.0 0.0
Return on assets % 25.2 28.9
Return on equity % 41.9 47.3
Return on capital employed % 56.8 64.3
* 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 down from Rs 127.6 to Rs 107.5, registering a loss of Rs 20.1 or around 15.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,020.3 (up 2.3%). Over the last one year it has moved up from 15,692.6 to 19,020.3, a gain of 3,328 points (up 21.2%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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

Annual Report FAQs

What is the current share price of CASTROL INDIA?

CASTROL INDIA currently trades at Rs 102.5 per share. You can check out the latest share price performance of CASTROL INDIA here...

What was the revenue of CASTROL INDIA in CY21? How does it compare to earlier years?

The revenues of CASTROL INDIA stood at Rs 42,405 m in CY21, which was up 38.6% compared to Rs 30,590 m reported in CY20.

CASTROL INDIA's revenue has grown from Rs 34,007 m in CY17 to Rs 42,405 m in CY21.

Over the past 5 years, the revenue of CASTROL INDIA has grown at a CAGR of 5.7%.

What was the net profit of CASTROL INDIA in CY21? How does it compare to earlier years?

The net profit of CASTROL INDIA stood at Rs 7,581 m in CY21, which was up 30.0% compared to Rs 5,829 m reported in CY20.

This compares to a net profit of Rs 8,274 m in CY19 and a net profit of Rs 7,084 m in CY18.

Over the past 5 years, CASTROL INDIA net profit has grown at a CAGR of 2.3%.

What does the cash flow statement of CASTROL INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of CASTROL INDIA reveals:

  • Cash flow from operations decreased in CY21 and stood at Rs 6,302 m as compared to Rs 8,928 m in CY20.
  • Cash flow from investments increased in CY21 and stood at Rs -831 m as compared to Rs -2,009 m in CY20.
  • Cash flow from financial activity increased in CY21 and stood at Rs -5,576 m as compared to Rs -5,643 m in CY20.

Here's the cash flow statement of CASTROL INDIA for the past 5 years.

(Rs m)CY17CY18CY19CY20CY21
From Operations6,0835,4958,7958,9286,302
From Investments1,514661-4,483-2,009-831
From Financial Activity-6,558-5,674-6,277-5,643-5,576
Net Cashflow1,039482-1,9651,275-105

What does the Key Ratio analysis of CASTROL INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of CASTROL INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 25.4% in CY21 as against 27.2% in CY20.
  • Net profit margins declined from 19.5% in CY20 to 18.1% in CY21.
  • Debt to Equity ratio for CY21 stood at 0.0 as compared to 0.0 in CY20.

Here's the ratio/financial analysis of CASTROL INDIA for the past 5 years.

 CY17CY18CY19CY20CY21
Operating Profit Margin (%)31.127.429.727.225.4
Net Profit Margin (%)20.918.121.319.518.1
Debt to Equity Ratio (x)0.00.00.00.00.0

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