MANALI PETRO 2017-18 Annual Report Analysis

Sat, 31 Mar

MANALI PETRO has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

MANALI PETRO Income Statement Analysis

• Operating income during the year rose 29.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY18 as against 10.6% in FY17.
• Depreciation charges decreased by 7.8% and finance costs increased by 40.8% YoY, respectively.
• Other income declined by 77.4% YoY.
• Net profit for the year grew by 46.4% YoY.
• Net profit margins during the year grew from 7.0% in FY17 to 7.9% in FY18.

MANALI PETRO Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,653	7,302	29.2%
Other income	Rs m	132	30	-77.4%
Total Revenues	Rs m	5,785	7,332	26.7%
Gross profit	Rs m	600	970	61.6%
Depreciation	Rs m	97	89	-7.8%
Interest	Rs m	23	33	40.8%
Profit before tax	Rs m	612	878	43.4%
Tax	Rs m	217	299	37.9%
Profit after tax	Rs m	396	579	46.4%
Gross profit margin	%	10.6	13.3
Effective tax rate	%	35.4	34.1
Net profit margin	%	7.0	7.9

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MANALI PETRO Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 1 billion as compared to Rs 2 billion in FY17, thereby witnessing an decrease of -33.7%.
• Current assets fell 8% and stood at Rs 3 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 6 billion during FY17, thereby witnessing a fall of 0%.

MANALI PETRO Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,303	3,917	18.6
Current Liabilities	Rs m	2,102	1,393	-33.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,560	5,560	0.0
Current assets	Rs m	2,732	2,503	-8.4
Fixed Assets	Rs m	2,829	3,057	8.1
Total Assets	Rs m	5,560	5,560	0.0

MANALI PETRO Cash Flow Statement Analysis

• MANALI PETRO's cash flow from operating activities (CFO) during FY18 stood at Rs 581 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -224 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -167 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 332 million from the Rs -395 million net cash flows seen during FY17.

MANALI PETRO Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	874	581	-33.5%
Cash Flow from Investing Activities	Rs m	-1,241	-224	-
Cash Flow from Financing Activities	Rs m	58	-167	-
Net Cash Flow	Rs m	-395	332	-

Current Valuations for MANALI PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 33.5, stands at 10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	32.9	42.5
TTM Earnings per share	Rs	2.3	3.4
Diluted earnings per share	Rs	2.3	3.4
Price to Cash Flow	x	14.0	10.2
TTM P/E ratio	x	17.0	10.5
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	6,252	6,828
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for MANALI PETRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY18, from 1.3x during FY17. 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 28.0x during FY18, from 27.5x during FY17. 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 14.8% during FY18, from 12.0% during FY18. 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 23.2% during FY18, from 19.2% during FY17. 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 11.0% during FY18, from 7.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.3	1.8
Debtors’ Days	Days	567	505
Interest coverage	x	27.5	28.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	11.0
Return on equity	%	12.0	14.8
Return on capital employed	%	19.2	23.2

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

MANALI PETRO Share Price Performance

Over the last one year, MANALI PETRO share price has moved down from Rs 40.0 to Rs 33.5, registering a loss of Rs 6.5 or around 16.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,614.4 (up 0.1%). Over the last one year it has moved up from 13,563.6 to 14,614.4, a gain of 1,051 points (up 7.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of MANALI PETRO