CASTROL INDIA 2022-23 Annual Report Analysis

Mon, 4 Mar

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

CASTROL INDIA Income Statement Analysis

• Operating income during the year rose 6.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.6% in CY23 as against 23.3% in CY22.
• Depreciation charges increased by 13.6% and finance costs increased by 87.8% YoY, respectively.
• Other income grew by 24.0% YoY.
• Net profit for the year grew by 6.0% YoY.
• Net profit margins during the year declined from 17.1% in CY22 to 17.0% in CY23.

CASTROL INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	47,745	50,746	6.3%
Other income	Rs m	671	832	24.0%
Total Revenues	Rs m	48,415	51,578	6.5%
Gross profit	Rs m	11,111	11,979	7.8%
Depreciation	Rs m	814	924	13.6%
Interest	Rs m	40	75	87.8%
Profit before tax	Rs m	10,928	11,811	8.1%
Tax	Rs m	2,776	3,170	14.2%
Profit after tax	Rs m	8,152	8,641	6.0%
Gross profit margin	%	23.3	23.6
Effective tax rate	%	25.4	26.8
Net profit margin	%	17.1	17.0

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CASTROL INDIA Balance Sheet Analysis

• The company's current liabilities during CY23 stood at Rs 12 billion as compared to Rs 11 billion in CY22, thereby witnessing an increase of 8.6%.
• Current assets rose 4% and stood at Rs 23 billion, while fixed assets rose 33% and stood at Rs 10 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 33 billion as against Rs 30 billion during CY22, thereby witnessing a growth of 11%.

CASTROL INDIA Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	18,245	20,427	12.0
Current Liabilities	Rs m	11,191	12,154	8.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	30,005	33,418	11.4
Current assets	Rs m	22,338	23,238	4.0
Fixed Assets	Rs m	7,667	10,180	32.8
Total Assets	Rs m	30,005	33,418	11.4

CASTROL INDIA Cash Flow Statement Analysis

• CASTROL INDIA's cash flow from operating activities (CFO) during CY23 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs -613 million from the Rs 4 billion net cash flows seen during CY22.

CASTROL INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	9,156	8,530	-6.8%
Cash Flow from Investing Activities	Rs m	620	-2,513	-
Cash Flow from Financing Activities	Rs m	-6,075	-6,638	-
Net Cash Flow	Rs m	3,703	-613	-

Current Valuations for CASTROL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.7, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 179.8, stands at 20.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	48.3	51.3
TTM Earnings per share	Rs	8.2	8.7
Diluted earnings per share	Rs	8.2	8.7
Price to Cash Flow	x	13.6	15.3
TTM P/E ratio	x	14.9	20.6
Price / Book Value ratio	x	6.4	7.2
Market Cap	Rs m	116,716	146,662
Dividends per share (Unadj.)	Rs	6.5	7.5

Ratio Analysis for CASTROL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during CY23, from 2.0x during CY22. 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 157.9x during CY23, from 273.5x during CY22. 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 42.3% during CY23, from 44.7% during CY23. 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 58.2% during CY23, from 60.1% during CY22. 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 26.1% during CY23, from 27.3% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	2.0	1.9
Debtors’ Days	Days	3	3
Interest coverage	x	273.5	157.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	27.3	26.1
Return on equity	%	44.7	42.3
Return on capital employed	%	60.1	58.2

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 101.0 to Rs 110.6, registering a gain of Rs 9.7 or around 9.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 17,383.4 (up 1.3%). Over the last one year it has moved down from 18,741.2 to 17,383.4, a loss of 1,358 points (down 7.2%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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