Markets will remain closed on May 01, 2024 on account of Maharashtra Day.

GULF OIL LUBRICANTS 2022-23 Annual Report Analysis

Mon, 14 Aug

GULF OIL LUBRICANTS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GULF OIL LUBRICANTS Income Statement Analysis

• Operating income during the year rose 36.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.4% in FY23 as against 13.0% in FY22.
• Depreciation charges increased by 10.9% and finance costs increased by 291.3% YoY, respectively.
• Other income grew by 8.8% YoY.
• Net profit for the year grew by 10.1% YoY.
• Net profit margins during the year declined from 9.6% in FY22 to 7.7% in FY23.

GULF OIL LUBRICANTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,916	29,991	36.8%
Other income	Rs m	442	481	8.8%
Total Revenues	Rs m	22,359	30,472	36.3%
Gross profit	Rs m	2,854	3,419	19.8%
Depreciation	Rs m	357	396	10.9%
Interest	Rs m	96	376	291.3%
Profit before tax	Rs m	2,843	3,127	10.0%
Tax	Rs m	733	804	9.7%
Profit after tax	Rs m	2,111	2,323	10.1%
Gross profit margin	%	13.0	11.4
Effective tax rate	%	25.8	25.7
Net profit margin	%	9.6	7.7

WATCH NOW: Top-5 Stocks in India's $10 Trillion Rally

GULF OIL LUBRICANTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 13.7%.
• Current assets rose 13% and stood at Rs 18 billion, while fixed assets rose 17% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 14%.

GULF OIL LUBRICANTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,370	11,677	12.6
Current Liabilities	Rs m	8,185	9,308	13.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	18,997	21,571	13.5
Current assets	Rs m	15,545	17,545	12.9
Fixed Assets	Rs m	3,452	4,025	16.6
Total Assets	Rs m	18,997	21,571	13.5

GULF OIL LUBRICANTS Cash Flow Statement Analysis

• GULF OIL LUBRICANTS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 304 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 571 million net cash flows seen during FY22.

GULF OIL LUBRICANTS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-237	2,733	-
Cash Flow from Investing Activities	Rs m	-173	304	-
Cash Flow from Financing Activities	Rs m	982	-2,021	-
Net Cash Flow	Rs m	571	1,016	77.9%

Current Valuations for GULF OIL LUBRICANTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.4, an improvement from the EPS of Rs 41.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 608.0, stands at 12.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	434.6	611.8
TTM Earnings per share	Rs	41.9	47.4
Diluted earnings per share	Rs	43.0	47.4
Price to Cash Flow	x	8.4	8.0
TTM P/E ratio	x	9.8	12.2
Price / Book Value ratio	x	2.8	1.9
Market Cap	Rs m	29,291	21,661
Dividends per share (Unadj.)	Rs	5.0	25.0

Ratio Analysis for GULF OIL LUBRICANTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 1.9x during FY22. 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 9.3x during FY23, from 30.6x during FY22. 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 19.9% during FY23, from 20.4% during FY23. 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 30.0% during FY23, from 28.3% during FY22. 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 12.5% during FY23, from 11.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.9	1.9
Debtors’ Days	Days	557	499
Interest coverage	x	30.6	9.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	12.5
Return on equity	%	20.4	19.9
Return on capital employed	%	28.3	30.0

To see how GULF OIL LUBRICANTS has performed over the last 5 years, please visit here.

GULF OIL LUBRICANTS Share Price Performance

Over the last one year, GULF OIL LUBRICANTS share price has moved up from Rs 441.1 to Rs 608.0, registering a gain of Rs 167.0 or around 37.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,955.4 (down 0.5%). Over the last one year it has moved down from 19,772.9 to 18,955.4, a loss of 817 points (down 4.1%).

Overall, the S&P BSE SENSEX is up 10.6% over the year.

(To know more, check out historical annual results for GULF OIL LUBRICANTS and quarterly results for GULF OIL LUBRICANTS)