GUJ. STATE PETRONET 2017-18 Annual Report Analysis

Sat, 31 Mar

GUJ. STATE PETRONET has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GUJ. STATE PETRONET Income Statement Analysis

• Operating income during the year rose 23.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.8% in FY18 as against 28.5% in FY17.
• Depreciation charges increased by 2.4% and finance costs decreased by 13.0% YoY, respectively.
• Other income declined by 7.3% YoY.
• Net profit for the year grew by 32.5% YoY.
• Net profit margins during the year grew from 12.2% in FY17 to 13.1% in FY18.

GUJ. STATE PETRONET Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	57,560	70,960	23.3%
Other income	Rs m	1,040	964	-7.3%
Total Revenues	Rs m	58,600	71,925	22.7%
Gross profit	Rs m	16,418	20,439	24.5%
Depreciation	Rs m	4,365	4,469	2.4%
Interest	Rs m	2,776	2,416	-13.0%
Profit before tax	Rs m	10,317	14,519	40.7%
Tax	Rs m	3,275	5,188	58.4%
Profit after tax	Rs m	7,042	9,331	32.5%
Gross profit margin	%	28.5	28.8
Effective tax rate	%	31.7	35.7
Net profit margin	%	12.2	13.1

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GUJ. STATE PETRONET Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 31 billion as compared to Rs 17 billion in FY17, thereby witnessing an increase of 79.2%.
• Long-term debt stood at Rs 40 billion as compared to Rs 28 billion during FY17, a growth of 42.3%.
• Current assets fell 17% and stood at Rs 13 billion, while fixed assets rose 4% and stood at Rs 106 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 120 billion as against Rs 118 billion during FY17, thereby witnessing a growth of 1%.

GUJ. STATE PETRONET Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	45,214	24,255	-46.4
Current Liabilities	Rs m	17,112	30,659	79.2
Long-term Debt	Rs m	27,926	39,725	42.3
Total Liabilities	Rs m	118,082	119,626	1.3
Current assets	Rs m	15,939	13,176	-17.3
Fixed Assets	Rs m	102,144	106,450	4.2
Total Assets	Rs m	118,082	119,626	1.3

GUJ. STATE PETRONET Cash Flow Statement Analysis

• GUJ. STATE PETRONET's cash flow from operating activities (CFO) during FY18 stood at Rs 17 billion, an improvement of 1.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -36 billion, an improvement of 330.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 20 billion, an improvement of 329% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 891 million from the Rs -696 million net cash flows seen during FY17.

GUJ. STATE PETRONET Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	16,441	16,688	1.5%
Cash Flow from Investing Activities	Rs m	-8,346	-35,929	-
Cash Flow from Financing Activities	Rs m	-8,791	20,132	-
Net Cash Flow	Rs m	-696	891	-

Current Valuations for GUJ. STATE PETRONET

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an improvement from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 188.2, stands at 15.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.5 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-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	102.2	125.9
TTM Earnings per share	Rs	12.5	16.6
Diluted earnings per share	Rs	12.5	16.5
Price to Cash Flow	x	8.0	8.0
TTM P/E ratio	x	18.3	15.9
Price / Book Value ratio	x	1.8	4.5
Market Cap	Rs m	82,219	109,759
Dividends per share (Unadj.)	Rs	1.5	1.8

Ratio Analysis for GUJ. STATE PETRONET

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY18, from 0.9x during FY17. 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 7.0x during FY18, from 4.7x during FY17. 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 38.5% during FY18, from 15.6% during FY18. 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 26.5% during FY18, from 17.9% during FY17. 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 9.8% during FY18, from 8.3% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	0.9	0.4
Debtors’ Days	Days	289	258
Interest coverage	x	4.7	7.0
Debt to equity ratio	x	0.6	1.6
Return on assets	%	8.3	9.8
Return on equity	%	15.6	38.5
Return on capital employed	%	17.9	26.5

To see how GUJ. STATE PETRONET has performed over the last 5 years, please visit here.

GUJ. STATE PETRONET Share Price Performance

Over the last one year, GUJ. STATE PETRONET share price has moved up from Rs 161.1 to Rs 188.2, registering a gain of Rs 27.1 or around 16.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,614.4 (up 0.1%). Over the last one year it has moved up from 13,563.6 to 14,614.4, a gain of 1,051 points (up 7.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for GUJ. STATE PETRONET and quarterly results for GUJ. STATE PETRONET)

Read: Latest Annual Report Analysis of GUJ. STATE PETRONET