NOCIL 2018-19 Annual Report Analysis

Sun, 31 Mar

NOCIL has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

NOCIL Income Statement Analysis

• Operating income during the year rose 10.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.1% in FY19 as against 28.1% in FY18.
• Depreciation charges increased by 1.2% and finance costs decreased by 48.4% YoY, respectively.
• Other income declined by 31.5% YoY.
• Net profit for the year grew by 8.8% YoY.
• Net profit margins during the year declined from 18.0% in FY18 to 17.7% in FY19.

NOCIL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	9,460	10,429	10.2%
Other income	Rs m	146	100	-31.5%
Total Revenues	Rs m	9,606	10,529	9.6%
Gross profit	Rs m	2,654	2,927	10.3%
Depreciation	Rs m	240	243	1.2%
Interest	Rs m	12	6	-48.4%
Profit before tax	Rs m	2,547	2,777	9.0%
Tax	Rs m	848	929	9.6%
Profit after tax	Rs m	1,699	1,849	8.8%
Gross profit margin	%	28.1	28.1
Effective tax rate	%	33.3	33.4
Net profit margin	%	18.0	17.7

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NOCIL Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an decrease of -5.8%.
• Current assets fell 14% and stood at Rs 6 billion, while fixed assets rose 31% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 14 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 8%.

NOCIL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	10,431	11,588	11.1
Current Liabilities	Rs m	1,644	1,548	-5.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,311	14,423	8.4
Current assets	Rs m	6,732	5,798	-13.9
Fixed Assets	Rs m	6,579	8,625	31.1
Total Assets	Rs m	13,311	14,423	8.4

NOCIL Cash Flow Statement Analysis

• NOCIL's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 60.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -502 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 127 million from the Rs -816 million net cash flows seen during FY18.

NOCIL Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	1,023	1,641	60.3%
Cash Flow from Investing Activities	Rs m	-1,415	-1,007	-
Cash Flow from Financing Activities	Rs m	-426	-502	-
Net Cash Flow	Rs m	-816	127	-

Current Valuations for NOCIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.2, an improvement from the EPS of Rs 10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 147.2, stands at 13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	57.5	63.0
TTM Earnings per share	Rs	10.3	11.2
Diluted earnings per share	Rs	10.2	11.1
Price to Cash Flow	x	16.4	13.8
TTM P/E ratio	x	18.9	13.3
Price / Book Value ratio	x	2.6	2.5
Market Cap	Rs m	26,892	28,804
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for NOCIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY19, from 4.1x during FY18. 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 441.9x during FY19, from 209.8x during FY18. 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 16.0% during FY19, from 16.3% during FY19. 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 24.0% during FY19, from 24.5% during FY18. 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 12.9% during FY19, from 12.9% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	4.1	3.7
Debtors’ Days	Days	939	813
Interest coverage	x	209.8	441.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	12.9
Return on equity	%	16.3	16.0
Return on capital employed	%	24.5	24.0

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

NOCIL Share Price Performance

Over the last one year, NOCIL share price has moved down from Rs 191.4 to Rs 147.2, registering a loss of Rs 44.2 or around 23.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,269.7 (up 0.9%). Over the last one year it has moved up from 14,614.4 to 15,269.7, a gain of 655 points (up 4.5%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of NOCIL