MANALI PETRO 2020-21 Annual Report Analysis

Wed, 31 Mar

MANALI PETRO 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.

MANALI PETRO Income Statement Analysis

• Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 343.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.0% in FY21 as against 7.7% in FY20.
• Depreciation charges increased by 45.2% and finance costs decreased by 24.8% YoY, respectively.
• Other income grew by 43.5% YoY.
• Net profit for the year grew by 331.3% YoY.
• Net profit margins during the year grew from 5.8% in FY20 to 19.7% in FY21.

MANALI PETRO Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,031	10,195	27.0%
Other income	Rs m	129	185	43.5%
Total Revenues	Rs m	8,159	10,380	27.2%
Gross profit	Rs m	621	2,751	343.1%
Depreciation	Rs m	145	210	45.2%
Interest	Rs m	63	47	-24.8%
Profit before tax	Rs m	542	2,678	394.1%
Tax	Rs m	76	666	781.8%
Profit after tax	Rs m	467	2,012	331.3%
Gross profit margin	%	7.7	27.0
Effective tax rate	%	13.9	24.9
Net profit margin	%	5.8	19.7

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MANALI PETRO Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 29.7%.
• Current assets rose 77% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 34%.

MANALI PETRO Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,812	6,800	41.3
Current Liabilities	Rs m	1,263	1,638	29.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,603	8,865	34.3
Current assets	Rs m	3,104	5,498	77.1
Fixed Assets	Rs m	3,499	3,367	-3.8
Total Assets	Rs m	6,603	8,865	34.3

MANALI PETRO Cash Flow Statement Analysis

• MANALI PETRO's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 149.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -142 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -282 million, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 409 million net cash flows seen during FY20.

MANALI PETRO 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	874	2,180	149.4%
Cash Flow from Investing Activities	Rs m	-206	-142	-
Cash Flow from Financing Activities	Rs m	-288	-282	-
Net Cash Flow	Rs m	409	1,863	355.7%

Current Valuations for MANALI PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, an improvement from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 59.3, stands at 5.1 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 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 3.1 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	46.7	59.3
TTM Earnings per share	Rs	2.7	11.7
Diluted earnings per share	Rs	2.7	11.7
Price to Cash Flow	x	2.8	3.1
TTM P/E ratio	x	3.7	5.1
Price / Book Value ratio	x	0.6	1.0
Market Cap	Rs m	3,126	6,873
Dividends per share (Unadj.)	Rs	0.8	1.5

Ratio Analysis for MANALI PETRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY21, from 2.5x 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 improved and stood at 57.9x during FY21, from 9.7x 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 improved and stood at 29.6% during FY21, from 9.7% 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 improved and stood at 40.1% during FY21, from 12.6% 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 improved and stood at 23.2% during FY21, from 8.0% 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	2.5	3.4
Debtors’ Days	Days	493	615
Interest coverage	x	9.7	57.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	23.2
Return on equity	%	9.7	29.6
Return on capital employed	%	12.6	40.1

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 up from Rs 10.1 to Rs 59.3, registering a gain of Rs 49.2 or around 487.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,820.5 (down 0.1%). Over the last one year it has moved up from 10,020.9 to 14,820.5, a gain of 4,800 points (up 47.9%).

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