HIND.OIL EXP 2017-18 Annual Report Analysis

Sat, 31 Mar

HIND.OIL EXP 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.

HIND.OIL EXP Income Statement Analysis

• Operating income during the year rose 91.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 72.4% in FY18 as against 119.2% in FY17.
• Depreciation charges decreased by 11.8% increased by 0.0% YoY, respectively.
• Other income declined by 38.8% YoY.
• Net profit for the year grew by 4.0% YoY.
• Net profit margins during the year declined from 141.9% in FY17 to 77.0% in FY18.

HIND.OIL EXP Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	254	487	91.7%
Other income	Rs m	193	118	-38.8%
Total Revenues	Rs m	447	606	35.3%
Gross profit	Rs m	303	353	16.5%
Depreciation	Rs m	96	85	-11.8%
Interest	Rs m	0	11	0.0%
Profit before tax	Rs m	400	375	-6.2%
Tax	Rs m	39	0	-100.0%
Profit after tax	Rs m	361	375	4.0%
Gross profit margin	%	119.2	72.4
Effective tax rate	%	9.9	0.0
Net profit margin	%	141.9	77.0

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HIND.OIL EXP Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 411 million as compared to Rs 675 million in FY17, thereby witnessing an decrease of -39.0%.
• Long-term debt stood at Rs 2 million as compared to Rs 0 million during FY17, a fall of 0.0%.
• Current assets fell 14% and stood at Rs 2 billion, while fixed assets rose 18% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 5 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 4%.

HIND.OIL EXP Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,413	3,832	12.3
Current Liabilities	Rs m	675	411	-39.0
Long-term Debt	Rs m	0	2	0.0
Total Liabilities	Rs m	5,248	5,435	3.6
Current assets	Rs m	2,352	2,017	-14.2
Fixed Assets	Rs m	2,895	3,418	18.1
Total Assets	Rs m	5,248	5,435	3.6

HIND.OIL EXP Cash Flow Statement Analysis

• HIND.OIL EXP's cash flow from operating activities (CFO) during FY18 stood at Rs -72 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -603 million, an improvement of 90.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -674 million from the Rs 667 million net cash flows seen during FY17.

HIND.OIL EXP 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	983	-72	-
Cash Flow from Investing Activities	Rs m	-316	-603	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	667	-674	-

Current Valuations for HIND.OIL EXP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 110.4, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 29.6 times.
• The company's price to cash flow (P/CF) ratio stood at 31.3 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	1.9	3.7
TTM Earnings per share	Rs	2.8	2.9
Diluted earnings per share	Rs	2.7	2.8
Price to Cash Flow	x	22.7	31.3
TTM P/E ratio	x	28.5	38.6
Price / Book Value ratio	x	2.1	3.8
Market Cap	Rs m	7,275	14,380
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 4.9x during FY18, from 3.5x 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 34.5x during FY18, from 0.0x 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 declined and down at 9.8% during FY18, from 10.6% 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 declined and down at 10.1% during FY18, from 11.7% 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 7.1% during FY18, from 6.9% 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	3.5	4.9
Debtors’ Days	Days	740	1,235
Interest coverage	x	0.0	34.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	7.1
Return on equity	%	10.6	9.8
Return on capital employed	%	11.7	10.1

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 up from Rs 78.4 to Rs 110.4, registering a gain of Rs 32.0 or around 40.8%.

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

Read: Latest Annual Report Analysis of HIND.OIL EXP