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CONFIDENCE PETROLEUM 2021-22 Annual Report Analysis
Fri, 16 Sep

CONFIDENCE PETROLEUM has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CONFIDENCE PETROLEUM Income Statement Analysis

  • Operating income during the year rose 65.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 49.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY22 as against 14.6% in FY21.
  • Depreciation charges increased by 27.9% and finance costs decreased by 14.2% YoY, respectively.
  • Other income grew by 126.1% YoY.
  • Net profit for the year grew by 84.6% YoY.
  • Net profit margins during the year grew from 5.5% in FY21 to 6.1% in FY22.

CONFIDENCE PETROLEUM Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 8,631 14,277 65.4%
Other income Rs m 28 64 126.1%
Total Revenues Rs m 8,659 14,341 65.6%
Gross profit Rs m 1,259 1,883 49.6%
Depreciation Rs m 522 668 27.9%
Interest Rs m 135 116 -14.2%
Profit before tax Rs m 630 1,164 84.6%
Tax Rs m 156 288 84.9%
Profit after tax Rs m 474 876 84.6%
Gross profit margin % 14.6 13.2
Effective tax rate % 24.7 24.8
Net profit margin % 5.5 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CONFIDENCE PETROLEUM Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 846 million as compared to Rs 557 million in FY21, thereby witnessing an increase of 51.9%.
  • Long-term debt down at Rs 420 million as compared to Rs 480 million during FY21, a fall of 12.5%.
  • Current assets rose 34% and stood at Rs 3 billion, while fixed assets rose 33% and stood at Rs 8 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 8 billion during FY21, thereby witnessing a growth of 33%.

CONFIDENCE PETROLEUM Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 5,332 6,944 30.2
 
Current Liabilities Rs m 557 846 51.9
Long-term Debt Rs m 480 420 -12.5
Total Liabilities Rs m 7,889 10,504 33.2
 
Current assets Rs m 2,184 2,926 34.0
Fixed Assets Rs m 5,705 7,579 32.8
Total Assets Rs m 7,889 10,504 33.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CONFIDENCE PETROLEUM Cash Flow Statement Analysis

  • CONFIDENCE PETROLEUM's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 5.5% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 19.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 692 million, an improvement of 67% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 30 million from the Rs -30 million net cash flows seen during FY21.

CONFIDENCE PETROLEUM Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 975 1,029 5.5%
Cash Flow from Investing Activities Rs m -1,420 -1,692 -
Cash Flow from Financing Activities Rs m 415 692 66.8%
Net Cash Flow Rs m -30 30 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CONFIDENCE PETROLEUM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 1.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 76.0, stands at 25.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 30.4 50.3
TTM Earnings per share Rs 1.7 3.1
Diluted earnings per share Rs 1.7 3.1
Price to Cash Flow x 12.7 12.3
TTM P/E ratio x 26.7 25.5
Price / Book Value ratio x 1.7 2.7
Market Cap Rs m 9,118 18,922
Dividends per share (Unadj.) Rs 0.1 0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CONFIDENCE PETROLEUM

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY22, from 3.9x during FY21. 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 11.1x during FY22, from 5.7x during FY21. 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 12.6% during FY22, from 8.9% during FY22. 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 17.4% during FY22, from 13.2% during FY21. 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 9.4% during FY22, from 7.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 3.9 3.5
Debtors’ Days Days 280 174
Interest coverage x 5.7 11.1
Debt to equity ratio x 0.1 0.1
Return on assets % 7.7 9.4
Return on equity % 8.9 12.6
Return on capital employed % 13.2 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how CONFIDENCE PETROLEUM has performed over the last 5 years, please visit here.

CONFIDENCE PETROLEUM Share Price Performance

Over the last one year, CONFIDENCE PETROLEUM share price has moved down from Rs 77.6 to Rs 76.0, registering a loss of Rs 1.6 or around 2.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,536.7 (down 1.8%). Over the last one year it has moved up from 17,814.1 to 19,536.7, a gain of 1,723 points (up 9.7%).

Overall, the S&P BSE SENSEX is up 1.1% over the year.

(To know more, check out historical annual results for CONFIDENCE PETROLEUM and quarterly results for CONFIDENCE PETROLEUM)

Annual Report FAQs

What is the current share price of CONFIDENCE PETROLEUM?

CONFIDENCE PETROLEUM currently trades at Rs 0.0 per share. You can check out the latest share price performance of CONFIDENCE PETROLEUM here...

What was the revenue of CONFIDENCE PETROLEUM in FY22? How does it compare to earlier years?

The revenues of CONFIDENCE PETROLEUM stood at Rs 14,341 m in FY22, which was up 65.6% compared to Rs 8,659 m reported in FY21.

CONFIDENCE PETROLEUM's revenue has grown from Rs 6,016 m in FY18 to Rs 14,341 m in FY22.

Over the past 5 years, the revenue of CONFIDENCE PETROLEUM has grown at a CAGR of 24.3%.

What was the net profit of CONFIDENCE PETROLEUM in FY22? How does it compare to earlier years?

The net profit of CONFIDENCE PETROLEUM stood at Rs 876 m in FY22, which was up 84.6% compared to Rs 474 m reported in FY21.

This compares to a net profit of Rs 511 m in FY20 and a net profit of Rs 643 m in FY19.

Over the past 5 years, CONFIDENCE PETROLEUM net profit has grown at a CAGR of 34.7%.

What does the cash flow statement of CONFIDENCE PETROLEUM 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 CONFIDENCE PETROLEUM reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 1,029 m as compared to Rs 975 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -1,692 m as compared to Rs -1,420 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 692 m as compared to Rs 415 m in FY21.

Here's the cash flow statement of CONFIDENCE PETROLEUM for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations6546836629751,029
From Investments-243-1,516-926-1,420-1,692
From Financial Activity-331874251415692
Net Cashflow8041-13-3030

What does the Key Ratio analysis of CONFIDENCE PETROLEUM 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 CONFIDENCE PETROLEUM reveals:

  • Operating profit margins witnessed a fall and stood at 13.2% in FY22 as against 14.6% in FY21.
  • Net profit margins grew from 5.5% in FY21 to 6.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.1 in FY21.

Here's the ratio/financial analysis of CONFIDENCE PETROLEUM for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)12.113.212.214.613.2
Net Profit Margin (%)4.46.44.75.56.1
Debt to Equity Ratio (x)0.10.10.10.10.1

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