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CHENNAI PETROLEUM 2021-22 Annual Report Analysis
Wed, 3 Aug

CHENNAI PETROLEUM has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CHENNAI PETROLEUM Income Statement Analysis

  • Operating income during the year rose 778.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 35.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.4% in FY22 as against 67.3% in FY21.
  • Depreciation charges increased by 8.2% and finance costs increased by 9.8% YoY, respectively.
  • Other income declined by 82.4% YoY.
  • Net profit for the year grew by 476.8% YoY.
  • Net profit margins during the year declined from 7.7% in FY21 to 5.1% in FY22.

CHENNAI PETROLEUM Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 29,905 262,765 778.7%
Other income Rs m 1,010 177 -82.4%
Total Revenues Rs m 30,914 262,942 750.6%
Gross profit Rs m 20,120 27,250 35.4%
Depreciation Rs m 4,658 5,039 8.2%
Interest Rs m 3,765 4,132 9.8%
Profit before tax Rs m 12,707 18,257 43.7%
Tax Rs m 10,390 4,892 -52.9%
Profit after tax Rs m 2,317 13,364 476.8%
Gross profit margin % 67.3 10.4
Effective tax rate % 81.8 26.8
Net profit margin % 7.7 5.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

CHENNAI PETROLEUM Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 115 billion as compared to Rs 94 billion in FY21, thereby witnessing an increase of 22.9%.
  • Long-term debt down at Rs 24 billion as compared to Rs 30 billion during FY21, a fall of 20.4%.
  • Current assets rose 75% and stood at Rs 89 billion, while fixed assets fell 8% and stood at Rs 90 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 179 billion as against Rs 149 billion during FY21, thereby witnessing a growth of 21%.

CHENNAI PETROLEUM Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 16,112 29,867 85.4
 
Current Liabilities Rs m 93,612 115,059 22.9
Long-term Debt Rs m 30,046 23,916 -20.4
Total Liabilities Rs m 148,797 179,364 20.5
 
Current assets Rs m 50,567 88,666 75.3
Fixed Assets Rs m 97,951 90,319 -7.8
Total Assets Rs m 148,797 179,364 20.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CHENNAI PETROLEUM Cash Flow Statement Analysis

  • CHENNAI PETROLEUM's cash flow from operating activities (CFO) during FY22 stood at Rs 10 billion, an improvement of 126.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -7 billion, an improvement of 23.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 72 million from the Rs 11 million net cash flows seen during FY21.

CHENNAI PETROLEUM Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 4,523 10,259 126.8%
Cash Flow from Investing Activities Rs m -5,480 -6,759 -
Cash Flow from Financing Activities Rs m 968 -3,428 -
Net Cash Flow Rs m 11 72 546.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CHENNAI PETROLEUM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 89.7, an improvement from the EPS of Rs 15.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 271.4, stands at 1.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 200.8 1,764.6
TTM Earnings per share Rs 15.6 89.7
Diluted earnings per share Rs 15.6 89.7
Price to Cash Flow x 2.1 1.0
TTM P/E ratio x 6.4 1.1
Price / Book Value ratio x 0.8 0.6
Market Cap Rs m 13,421 18,227
Dividends per share (Unadj.) Rs 0.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CHENNAI PETROLEUM

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY22, from 0.5x during FY21. 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 5.4x during FY22, from 4.4x during FY21. 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 improved and stood at 44.7% during FY22, from 14.4% during FY22. 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 improved and stood at 41.6% during FY22, from 35.7% during FY21. 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 9.8% during FY22, from 4.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 0.5 0.8
Debtors’ Days Days 2 0
Interest coverage x 4.4 5.4
Debt to equity ratio x 1.9 0.8
Return on assets % 4.1 9.8
Return on equity % 14.4 44.7
Return on capital employed % 35.7 41.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

CHENNAI PETROLEUM Share Price Performance

Over the last one year, CHENNAI PETROLEUM share price has moved up from Rs 114.1 to Rs 271.4, registering a gain of Rs 157.3 or around 137.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,208.3 (down 0.8%). Over the last one year it has moved up from 15,853.3 to 19,208.3, a gain of 3,355 points (up 21.2%).

Overall, the S&P BSE SENSEX is up 9.8% over the year.

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

Annual Report FAQs

What is the current share price of CHENNAI PETROLEUM?

CHENNAI PETROLEUM currently trades at Rs 906.7 per share. You can check out the latest share price performance of CHENNAI PETROLEUM here...

What was the revenue of CHENNAI PETROLEUM in FY22? How does it compare to earlier years?

The revenues of CHENNAI PETROLEUM stood at Rs 262,942 m in FY22, which was up 750.6% compared to Rs 30,914 m reported in FY21.

CHENNAI PETROLEUM's revenue has grown from Rs 208,996 m in FY18 to Rs 262,942 m in FY22.

Over the past 5 years, the revenue of CHENNAI PETROLEUM has grown at a CAGR of 5.9%.

What was the net profit of CHENNAI PETROLEUM in FY22? How does it compare to earlier years?

The net profit of CHENNAI PETROLEUM stood at Rs 13,364 m in FY22, which was up 476.8% compared to Rs 2,317 m reported in FY21.

This compares to a net loss of Rs -20,835 m in FY20 and a net loss of Rs -2,193 m in FY19.

Over the past 5 years, CHENNAI PETROLEUM net profit has grown at a CAGR of 10.2%.

What does the cash flow statement of CHENNAI PETROLEUM 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 CHENNAI PETROLEUM reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 10,259 m as compared to Rs 4,523 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -6,759 m as compared to Rs -5,480 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -3,428 m as compared to Rs 968 m in FY21.

Here's the cash flow statement of CHENNAI PETROLEUM for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations27,567-1,437-6,2024,52310,259
From Investments-9,692-12,733-9,630-5,480-6,759
From Financial Activity-17,87714,17115,831968-3,428
Net Cashflow-21-11172

What does the Key Ratio analysis of CHENNAI PETROLEUM 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 CHENNAI PETROLEUM reveals:

  • Operating profit margins witnessed a fall and stood at 10.4% in FY22 as against 67.3% in FY21.
  • Net profit margins declined from 7.7% in FY21 to 5.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.8 as compared to 1.9 in FY21.

Here's the ratio/financial analysis of CHENNAI PETROLEUM for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.01.7-8.467.310.4
Net Profit Margin (%)4.3-0.7-8.17.75.1
Debt to Equity Ratio (x)0.20.42.21.90.8

Read: Latest Annual Report Analysis of CHENNAI PETROLEUM

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