HPCL 2019-20 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HPCL 2019-20 Annual Report Analysis
Mon, 23 Nov

HPCL has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

HPCL Income Statement Analysis

  • Operating income during the year fell 2.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 50.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.1% in FY20 as against 4.2% in FY19.
  • Depreciation charges increased by 9.2% and finance costs increased by 45.0% YoY, respectively.
  • Other income grew by 15.7% YoY.
  • Net profit for the year declined by 60.6% YoY.
  • Net profit margins during the year declined from 2.4% in FY19 to 1.0% in FY20.

HPCL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 2,754,906 2,690,915 -2.3%
Other income Rs m 14,531 16,816 15.7%
Total Revenues Rs m 2,769,438 2,707,732 -2.2%
Gross profit Rs m 115,273 56,625 -50.9%
Depreciation Rs m 30,853 33,699 9.2%
Interest Rs m 7,856 11,389 45.0%
Profit before tax Rs m 91,095 28,354 -68.9%
Tax Rs m 33,486 -12,644 -137.8%
Profit after tax Rs m 66,906 26,387 -60.6%
Gross profit margin % 4.2 2.1
Effective tax rate % 36.8 -44.6
Net profit margin % 2.4 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Know More: Which way are the markets & the mutual fund industry headed?

HPCL Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 570 billion as compared to Rs 572 billion in FY19, thereby witnessing an decrease of -0.3%.
  • Long-term debt stood at Rs 231 billion as compared to Rs 121 billion during FY19, a growth of 90.6%.
  • Current assets fell 14% and stood at Rs 376 billion, while fixed assets rose 29% and stood at Rs 661 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 1,169 billion as against Rs 1,073 billion during FY19, thereby witnessing a growth of 9%.

HPCL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 304,007 309,806 1.9
 
Current Liabilities Rs m 572,099 570,444 -0.3
Long-term Debt Rs m 121,278 231,096 90.6
Total Liabilities Rs m 1,073,465 1,169,062 8.9
 
Current assets Rs m 434,900 376,178 -13.5
Fixed Assets Rs m 511,435 661,215 29.3
Total Assets Rs m 1,073,465 1,169,062 8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HPCL Cash Flow Statement Analysis

  • HPCL's cash flow from operating activities (CFO) during FY20 stood at Rs 55 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -142 billion, an improvement of 24.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 85 billion, an improvement of 225% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -2 billion from the Rs -2 billion net cash flows seen during FY19.

HPCL Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 85,540 54,692 -36.1%
Cash Flow from Investing Activities Rs m -113,817 -141,679 -
Cash Flow from Financing Activities Rs m 25,982 84,520 225.3%
Net Cash Flow Rs m -2,295 -2,467 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HPCL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an decline from the EPS of Rs 43.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 213.7, stands at 5.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 1,807.1 1,765.1
TTM Earnings per share Rs 43.9 17.3
Diluted earnings per share Rs 43.9 17.3
Price to Cash Flow x 3.7 5.0
TTM P/E ratio x 5.4 5.4
Price / Book Value ratio x 1.3 1.2
Market Cap Rs m 325,716 325,443
Dividends per share (Unadj.) Rs 15.9 9.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HPCL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY20, from 0.8x during FY19. 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 3.5x during FY20, from 12.6x during FY19. 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 8.5% during FY20, from 22.0% during FY20. 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 4.6% during FY20, from 25.5% during FY19. 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 declined and down at 3.2% during FY20, from 7.0% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.8 0.7
Debtors’ Days Days 8 5
Interest coverage x 12.6 3.5
Debt to equity ratio x 0.4 0.7
Return on assets % 7.0 3.2
Return on equity % 22.0 8.5
Return on capital employed % 25.5 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HPCL Share Price Performance

Over the last one year, HPCL share price has moved down from Rs 290.4 to Rs 213.7, registering a loss of Rs 76.7 or around 26.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,060.3 (up 1.1%). Over the last one year it has moved down from 15,110.1 to 13,060.3, a loss of 2,050 points (down 13.6%).

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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

Equitymaster requests your view! Post a comment on "HPCL 2019-20 Annual Report Analysis". Click here!

  

Related Views on News

HPCL Announces Quarterly Results (1QFY21); Net Profit Up 247.0% (Quarterly Result Update)

Nov 6, 2020 | Updated on Nov 6, 2020

For the quarter ended June 2020, HPCL has posted a net profit of Rs 28 bn (up 247.0% YoY). Sales on the other hand came in at Rs 461 bn (down 38.4% YoY). Read on for a complete analysis of HPCL's quarterly results.

HPCL Announces Quarterly Results (3QFY20); Net Profit Up 201.8% (Quarterly Result Update)

Feb 7, 2020 | Updated on Feb 7, 2020

For the quarter ended December 2019, HPCL has posted a net profit of Rs 7 bn (up 201.8% YoY). Sales on the other hand came in at Rs 746 bn (down 3.4% YoY). Read on for a complete analysis of HPCL's quarterly results.

HPCL 2018-19 Annual Report Analysis (Annual Result Update)

Jul 30, 2019 | Updated on Jul 30, 2019

Here's an analysis of the annual report of HPCL for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of HPCL. Also includes updates on the valuation of HPCL.

More Views on News

Most Popular

Time to Book Profits in Pharma Stocks(Fast Profits Daily)

Jan 15, 2021

In this video, I'll show you why it might be the right time to take money of the table in pharma stocks.

Smallcap Stocks: Your Best Bet for 2021 and Beyond(Profit Hunter)

Jan 15, 2021

The pandemic failed to thwart Richa's investing success formula for 2020.

One Chart to See Before You Sell(Fast Profits Daily)

Jan 22, 2021

In this video, I'll show you a crucial chart that you need to check before you decide to sell any stock or index.

Invest in the Multibaggers of 2021 and Beyond(Profit Hunter)

Jan 21, 2021

Our ace stock picker is ready to capitalise on a big growth opportunity.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK HPCL

COMPARE HPCL WITH

MARKET STATS