HIND.OIL EXP 2022-23 Annual Report Analysis

Fri, 31 Mar

HIND.OIL EXP 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.

HIND.OIL EXP Income Statement Analysis

• Operating income during the year rose 258.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 583.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 53.7% in FY23 as against 28.2% in FY22.
• Depreciation charges increased by 181.1% and finance costs increased by 300.8% YoY, respectively.
• Other income declined by 23.3% YoY.
• Net profit for the year grew by 870.5% YoY.
• Net profit margins during the year grew from 12.8% in FY22 to 34.7% in FY23.

HIND.OIL EXP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,557	5,589	258.9%
Other income	Rs m	115	88	-23.3%
Total Revenues	Rs m	1,672	5,677	239.6%
Gross profit	Rs m	439	3,003	583.5%
Depreciation	Rs m	262	737	181.1%
Interest	Rs m	95	381	300.8%
Profit before tax	Rs m	197	1,973	902.2%
Tax	Rs m	-3	32	NA
Profit after tax	Rs m	200	1,940	870.5%
Gross profit margin	%	28.2	53.7
Effective tax rate	%	-1.6	1.6
Net profit margin	%	12.8	34.7

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HIND.OIL EXP Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 63.0%.
• Long-term debt down at Rs 934 million as compared to Rs 2 billion during FY22, a fall of 54.4%.
• Current assets rose 235% and stood at Rs 5 billion, while fixed assets fell 0% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 21%.

HIND.OIL EXP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,531	9,472	25.8
Current Liabilities	Rs m	3,350	5,462	63.0
Long-term Debt	Rs m	2,046	934	-54.4
Total Liabilities	Rs m	15,272	18,503	21.2
Current assets	Rs m	1,398	4,688	235.3
Fixed Assets	Rs m	13,874	13,815	-0.4
Total Assets	Rs m	15,272	18,503	21.2

HIND.OIL EXP Cash Flow Statement Analysis

• HIND.OIL EXP's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 97.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -770 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -272 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -628 million net cash flows seen during FY22.

HIND.OIL EXP 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	1,110	2,193	97.6%
Cash Flow from Investing Activities	Rs m	-2,802	-770	-
Cash Flow from Financing Activities	Rs m	1,065	-272	-
Net Cash Flow	Rs m	-628	1,151	-

Current Valuations for HIND.OIL EXP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.7, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 120.1, stands at 8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	11.8	42.3
TTM Earnings per share	Rs	1.5	14.7
Diluted earnings per share	Rs	1.5	14.7
Price to Cash Flow	x	62.9	8.5
TTM P/E ratio	x	139.2	8.2
Price / Book Value ratio	x	2.9	2.4
Market Cap	Rs m	22,124	22,637
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HIND.OIL EXP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.4x 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 improved and stood at 6.2x during FY23, from 3.1x 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 improved and stood at 20.5% during FY23, from 2.7% 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 22.6% during FY23, from 3.0% 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 1.9% 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	0.4	0.9
Debtors’ Days	Days	380	764
Interest coverage	x	3.1	6.2
Debt to equity ratio	x	0.3	0.1
Return on assets	%	1.9	12.5
Return on equity	%	2.7	20.5
Return on capital employed	%	3.0	22.6

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

HIND.OIL EXP Share Price Performance

Over the last one year, HIND.OIL EXP share price has moved down from Rs 219.9 to Rs 120.1, registering a loss of Rs 99.8 or around 45.4%.

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 HIND.OIL EXP and quarterly results for HIND.OIL EXP)