INDRAPRASTHA GAS 2018-19 Annual Report Analysis

Sun, 31 Mar

INDRAPRASTHA GAS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

INDRAPRASTHA GAS Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.5% in FY19 as against 27.7% in FY18.
• Depreciation charges increased by 10.9% and finance costs increased by 48.9% YoY, respectively.
• Other income grew by 41.8% YoY.
• Net profit for the year grew by 16.2% YoY.
• Net profit margins during the year declined from 16.0% in FY18 to 14.6% in FY19.

INDRAPRASTHA GAS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	40,560	51,678	27.4%
Other income	Rs m	906	1,285	41.8%
Total Revenues	Rs m	41,466	52,963	27.7%
Gross profit	Rs m	11,233	12,677	12.8%
Depreciation	Rs m	1,813	2,011	10.9%
Interest	Rs m	86	128	48.9%
Profit before tax	Rs m	10,241	11,823	15.5%
Tax	Rs m	3,742	4,272	14.1%
Profit after tax	Rs m	6,498	7,551	16.2%
Gross profit margin	%	27.7	24.5
Effective tax rate	%	36.5	36.1
Net profit margin	%	16.0	14.6

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INDRAPRASTHA GAS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 15 billion as compared to Rs 12 billion in FY18, thereby witnessing an increase of 30.1%.
• Current assets rose 26% and stood at Rs 22 billion, while fixed assets rose 19% and stood at Rs 39 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 62 billion as against Rs 51 billion during FY18, thereby witnessing a growth of 21%.

INDRAPRASTHA GAS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	36,470	43,157	18.3
Current Liabilities	Rs m	11,763	15,307	30.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	50,965	61,833	21.3
Current assets	Rs m	17,826	22,424	25.8
Fixed Assets	Rs m	33,139	39,409	18.9
Total Assets	Rs m	50,965	61,833	21.3

INDRAPRASTHA GAS Cash Flow Statement Analysis

• INDRAPRASTHA GAS's cash flow from operating activities (CFO) during FY19 stood at Rs 12 billion, an improvement of 31.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -11 billion, an improvement of 56.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -1 billion from the Rs 781 million net cash flows seen during FY18.

INDRAPRASTHA GAS Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	8,793	11,572	31.6%
Cash Flow from Investing Activities	Rs m	-7,170	-11,208	-
Cash Flow from Financing Activities	Rs m	-842	-1,688	-
Net Cash Flow	Rs m	781	-1,325	-

Current Valuations for INDRAPRASTHA GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 9.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 304.5, stands at 27.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	57.9	73.8
TTM Earnings per share	Rs	9.3	10.8
Diluted earnings per share	Rs	9.3	10.8
Price to Cash Flow	x	23.5	19.6
TTM P/E ratio	x	29.1	27.1
Price / Book Value ratio	x	18.2	4.3
Market Cap	Rs m	663,128	187,425
Dividends per share (Unadj.)	Rs	2.0	2.4

Ratio Analysis for INDRAPRASTHA GAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY19, from 1.5x during FY18. 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 93.7x during FY19, from 120.6x during FY18. 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 17.5% during FY19, from 17.8% during FY19. 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 27.7% during FY19, from 28.3% during FY18. 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 12.4% during FY19, from 12.9% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.5	1.5
Debtors’ Days	Days	2	2
Interest coverage	x	120.6	93.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	12.4
Return on equity	%	17.8	17.5
Return on capital employed	%	28.3	27.7

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

INDRAPRASTHA GAS Share Price Performance

Over the last one year, INDRAPRASTHA GAS share price has moved up from Rs 278.9 to Rs 304.5, registering a gain of Rs 25.7 or around 9.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,269.7 (up 0.9%). Over the last one year it has moved up from 14,614.4 to 15,269.7, a gain of 655 points (up 4.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of INDRAPRASTHA GAS