CHENNAI PETROLEUM 2022-23 Annual Report Analysis

Tue, 15 Aug

CHENNAI PETROLEUM has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CHENNAI PETROLEUM Income Statement Analysis

• Operating income during the year rose 138.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 107.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY23 as against 10.5% in FY22.
• Depreciation charges increased by 13.8% and finance costs decreased by 20.0% YoY, respectively.
• Other income declined by 32.7% YoY.
• Net profit for the year grew by 161.2% YoY.
• Net profit margins during the year grew from 5.1% in FY22 to 5.6% in FY23.

CHENNAI PETROLEUM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	262,765	625,611	138.1%
Other income	Rs m	107	72	-32.7%
Total Revenues	Rs m	262,872	625,683	138.0%
Gross profit	Rs m	27,477	57,034	107.6%
Depreciation	Rs m	5,039	5,735	13.8%
Interest	Rs m	4,132	3,307	-20.0%
Profit before tax	Rs m	18,413	48,064	161.0%
Tax	Rs m	4,892	12,749	160.6%
Profit after tax	Rs m	13,520	35,315	161.2%
Gross profit margin	%	10.5	9.1
Effective tax rate	%	26.6	26.5
Net profit margin	%	5.1	5.6

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CHENNAI PETROLEUM Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 66 billion as compared to Rs 115 billion in FY22, thereby witnessing an decrease of -42.7%.
• Long-term debt down at Rs 22 billion as compared to Rs 24 billion during FY22, a fall of 9.7%.
• Current assets fell 18% and stood at Rs 68 billion, while fixed assets rose 6% and stood at Rs 95 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 171 billion as against Rs 178 billion during FY22, thereby witnessing a fall of 4%.

CHENNAI PETROLEUM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	29,867	64,751	116.8
Current Liabilities	Rs m	114,677	65,720	-42.7
Long-term Debt	Rs m	23,916	21,592	-9.7
Total Liabilities	Rs m	178,213	171,318	-3.9
Current assets	Rs m	82,612	68,003	-17.7
Fixed Assets	Rs m	89,416	94,637	5.8
Total Assets	Rs m	178,213	171,318	-3.9

CHENNAI PETROLEUM Cash Flow Statement Analysis

• CHENNAI PETROLEUM's cash flow from operating activities (CFO) during FY23 stood at Rs 57 billion, an improvement of 460.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -54 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -71 million from the Rs 72 million net cash flows seen during FY22.

CHENNAI PETROLEUM Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	10,259	57,490	460.4%
Cash Flow from Investing Activities	Rs m	-6,759	-4,025	-
Cash Flow from Financing Activities	Rs m	-3,428	-53,536	-
Net Cash Flow	Rs m	72	-71	-

Current Valuations for CHENNAI PETROLEUM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 237.2, an improvement from the EPS of Rs 90.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 366.0, stands at 3.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.1 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-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,764.6	4,201.3
TTM Earnings per share	Rs	90.8	237.2
Diluted earnings per share	Rs	90.8	237.2
Price to Cash Flow	x	1.0	1.0
TTM P/E ratio	x	1.4	3.2
Price / Book Value ratio	x	0.6	0.6
Market Cap	Rs m	18,227	40,575
Dividends per share (Unadj.)	Rs	2.0	27.0

Ratio Analysis for CHENNAI PETROLEUM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 0.7x during FY22. 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 15.5x during FY23, from 5.5x during FY22. 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 54.5% during FY23, from 45.3% during FY23. 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 59.5% during FY23, from 41.9% during FY22. 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 22.5% during FY23, from 9.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.7	1.0
Debtors’ Days	Days	0	0
Interest coverage	x	5.5	15.5
Debt to equity ratio	x	0.8	0.3
Return on assets	%	9.9	22.5
Return on equity	%	45.3	54.5
Return on capital employed	%	41.9	59.5

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 266.3 to Rs 366.0, registering a gain of Rs 99.7 or around 37.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,983.0 (down 0.4%). Over the last one year it has moved down from 19,772.9 to 18,983.0, a loss of 790 points (down 4.0%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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