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KIRLOSKAR OIL 2020-21 Annual Report Analysis
Wed, 31 Mar

KIRLOSKAR OIL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

KIRLOSKAR OIL Income Statement Analysis

  • Operating income during the year fell 2.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 24.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.4% in FY21 as against 9.0% in FY20.
  • Depreciation charges decreased by 3.8% and finance costs increased by 252.7% YoY, respectively.
  • Other income declined by 37.7% YoY.
  • Net profit for the year grew by 5.1% YoY.
  • Net profit margins during the year grew from 5.6% in FY20 to 6.0% in FY21.

KIRLOSKAR OIL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 33,795 32,961 -2.5%
Other income Rs m 425 265 -37.7%
Total Revenues Rs m 34,220 33,226 -2.9%
Gross profit Rs m 3,038 3,773 24.2%
Depreciation Rs m 873 840 -3.8%
Interest Rs m 142 501 252.7%
Profit before tax Rs m 2,447 2,697 10.2%
Tax Rs m 569 723 27.1%
Profit after tax Rs m 1,879 1,974 5.1%
Gross profit margin % 9.0 11.4
Effective tax rate % 23.2 26.8
Net profit margin % 5.6 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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KIRLOSKAR OIL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 13 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 67.4%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 644 million during FY20, a growth of 547.1%.
  • Current assets rose 36% and stood at Rs 23 billion, while fixed assets rose 39% and stood at Rs 15 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 38 billion as against Rs 28 billion during FY20, thereby witnessing a growth of 38%.

KIRLOSKAR OIL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 17,404 19,149 10.0
 
Current Liabilities Rs m 7,480 12,524 67.4
Long-term Debt Rs m 644 4,170 547.1
Total Liabilities Rs m 27,589 37,967 37.6
 
Current assets Rs m 16,797 22,928 36.5
Fixed Assets Rs m 10,792 15,039 39.4
Total Assets Rs m 27,589 37,967 37.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KIRLOSKAR OIL Cash Flow Statement Analysis

  • KIRLOSKAR OIL's cash flow from operating activities (CFO) during FY21 stood at Rs -160 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 6 billion, an improvement of 1,507% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 666 million net cash flows seen during FY20.

KIRLOSKAR OIL Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m -1,242 -160 -
Cash Flow from Investing Activities Rs m 2,334 -4,652 -
Cash Flow from Financing Activities Rs m -426 5,990 -
Net Cash Flow Rs m 666 1,177 76.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KIRLOSKAR OIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.7, an improvement from the EPS of Rs 13.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 163.9, stands at 12.0 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 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 233.7 227.9
TTM Earnings per share Rs 13.0 13.7
Diluted earnings per share Rs 13.0 13.6
Price to Cash Flow x 4.6 6.9
TTM P/E ratio x 6.7 12.0
Price / Book Value ratio x 1.1 1.0
Market Cap Rs m 19,888 19,508
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KIRLOSKAR OIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 2.2x during FY20. 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 6.4x during FY21, from 18.2x during FY20. 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 10.3% during FY21, from 10.8% during FY21. 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 13.7% during FY21, from 14.3% during FY20. 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 6.5% during FY21, from 7.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 2.2 1.8
Debtors’ Days Days 4 5
Interest coverage x 18.2 6.4
Debt to equity ratio x 0.0 0.2
Return on assets % 7.3 6.5
Return on equity % 10.8 10.3
Return on capital employed % 14.3 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

KIRLOSKAR OIL Share Price Performance

Over the last one year, KIRLOSKAR OIL share price has moved up from Rs 87.0 to Rs 163.9, registering a gain of Rs 76.9 or around 88.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of KIRLOSKAR OIL?

KIRLOSKAR OIL currently trades at Rs 1,020.4 per share. You can check out the latest share price performance of KIRLOSKAR OIL here...

What was the revenue of KIRLOSKAR OIL in FY21? How does it compare to earlier years?

The revenues of KIRLOSKAR OIL stood at Rs 33,226 m in FY21, which was down -2.9% compared to Rs 34,220 m reported in FY20.

KIRLOSKAR OIL's revenue has grown from Rs 25,534 m in FY17 to Rs 33,226 m in FY21.

Over the past 5 years, the revenue of KIRLOSKAR OIL has grown at a CAGR of 6.8%.

What was the net profit of KIRLOSKAR OIL in FY21? How does it compare to earlier years?

The net profit of KIRLOSKAR OIL stood at Rs 1,974 m in FY21, which was up 5.1% compared to Rs 1,879 m reported in FY20.

This compares to a net profit of Rs 2,196 m in FY19 and a net profit of Rs 1,362 m in FY18.

Over the past 5 years, KIRLOSKAR OIL net profit has grown at a CAGR of 3.2%.

What does the cash flow statement of KIRLOSKAR OIL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of KIRLOSKAR OIL reveals:

  • Cash flow from operations increased in FY21 and stood at Rs -160 m as compared to Rs -1,242 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -4,652 m as compared to Rs 2,334 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 5,990 m as compared to Rs -426 m in FY20.

Here's the cash flow statement of KIRLOSKAR OIL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,7141,3651,918-1,242-160
From Investments-1,89867-3792,334-4,652
From Financial Activity25-956-1,528-4265,990
Net Cashflow-160476126661,177

What does the Key Ratio analysis of KIRLOSKAR OIL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of KIRLOSKAR OIL reveals:

  • Operating profit margins witnessed a fall and down at 11.4% in FY21 as against 9.0% in FY20.
  • Net profit margins grew from 5.6% in FY20 to 6.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of KIRLOSKAR OIL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.48.810.39.011.4
Net Profit Margin (%)7.04.56.15.66.0
Debt to Equity Ratio (x)0.00.00.00.00.2

Read: Latest Annual Report Analysis of KIRLOSKAR OIL

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