IOC 2018-19 Annual Report Analysis

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IOC 2018-19 Annual Report Analysis
Thu, 29 Aug

IOC 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.

IOC Income Statement Analysis

  • Operating income during the year rose 25.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY19 as against 9.9% in FY18.
  • Depreciation charges increased by 11.0% and finance costs increased by 27.1% YoY, respectively.
  • Other income declined by 20.6% YoY.
  • Net profit for the year declined by 23.7% YoY.
  • Net profit margins during the year declined from 5.3% in FY18 to 3.3% in FY19.

IOC Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 4,214,918 5,281,489 25.3%
Other income Rs m 34,199 27,143 -20.6%
Total Revenues Rs m 4,249,117 5,308,632 24.9%
Gross profit Rs m 416,275 352,227 -15.4%
Depreciation Rs m 76,635 85,065 11.0%
Interest Rs m 38,448 48,880 27.1%
Profit before tax Rs m 335,391 245,425 -26.8%
Tax Rs m 118,239 86,531 -26.8%
Profit after tax Rs m 226,264 172,739 -23.7%
Gross profit margin % 9.9 6.7
Effective tax rate % 35.3 35.3
Net profit margin % 5.3 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



IOC Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 1,607 billion as compared to Rs 1,399 billion in FY18, thereby witnessing an increase of 14.9%.
  • Long-term debt stood at Rs 392 billion as compared to Rs 231 billion during FY18, a growth of 69.8%.
  • Current assets rose 23% and stood at Rs 1,298 billion, while fixed assets rose 12% and stood at Rs 1,727 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 3,352 billion as against Rs 2,957 billion during FY18, thereby witnessing a growth of 13%.

IOC Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 1,138,738 1,124,692 -1.2
 
Current Liabilities Rs m 1,399,050 1,607,189 14.9
Long-term Debt Rs m 230,605 391,525 69.8
Total Liabilities Rs m 2,956,757 3,351,551 13.4
 
Current assets Rs m 1,056,779 1,297,760 22.8
Fixed Assets Rs m 1,542,319 1,726,679 12.0
Total Assets Rs m 2,956,757 3,351,551 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



IOC Cash Flow Statement Analysis

  • IOC's cash flow from operating activities (CFO) during FY19 stood at Rs 141 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -240 billion, an improvement of 39.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 104 billion, an improvement of 187% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 6 billion from the Rs -108 million net cash flows seen during FY18.

IOC 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 291,153 141,330 -51.5%
Cash Flow from Investing Activities Rs m -171,187 -239,549 -
Cash Flow from Financing Activities Rs m -120,074 104,365 -
Net Cash Flow Rs m -108 6,146 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for IOC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.3, an decline from the EPS of Rs 23.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 123.4, stands at 9.5 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 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.9 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 434.0 561.0
TTM Earnings per share Rs 23.3 18.3
Diluted earnings per share Rs 23.3 17.8
Price to Cash Flow x 4.1 4.9
TTM P/E ratio x 9.5 9.5
Price / Book Value ratio x 3.5 1.2
Market Cap Rs m 1,198,437 1,198,437
Dividends per share (Unadj.) Rs 21.0 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for IOC

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY19, from 0.8x 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 6.0x during FY19, from 9.7x 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 15.4% during FY19, from 19.9% 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 20.3% during FY19, from 28.0% 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 6.6% during FY19, from 9.0% 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 0.8 0.8
Debtors’ Days Days 9 11
Interest coverage x 9.7 6.0
Debt to equity ratio x 0.2 0.3
Return on assets % 9.0 6.6
Return on equity % 19.9 15.4
Return on capital employed % 28.0 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

IOC Share Price Performance

Over the last one year, IOC share price has moved down from Rs 156.5 to Rs 123.4, registering a loss of Rs 33.1 or around 21.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,167.9 (up 0.2%). Over the last one year it has moved down from 15,128.1 to 13,167.9, a loss of 1,960 points (down 13.0%).

Overall, the S&P BSE SENSEX is down 4.2% over the year.

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

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IOC Announces Quarterly Results (1QFY21); Net Profit Down 40.8% (Quarterly Result Update)

Aug 3, 2020 | Updated on Aug 3, 2020

For the quarter ended June 2020, IOC has posted a net profit of Rs 21 bn (down 40.8% YoY). Sales on the other hand came in at Rs 901 bn (down 40.0% YoY). Read on for a complete analysis of IOC's quarterly results.

IOC Announces Quarterly Results (2QFY20); Net Profit Down 97.2% (Quarterly Result Update)

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For the quarter ended September 2019, IOC has posted a net profit of Rs 836 m (down 97.2% YoY). Sales on the other hand came in at Rs 1,348 bn (down 13.0% YoY). Read on for a complete analysis of IOC's quarterly results.

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