NOCIL 2020-21 Annual Report Analysis

Wed, 31 Mar

NOCIL 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.

NOCIL Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY21 as against 21.1% in FY20.
• Depreciation charges increased by 10.9% and finance costs decreased by 26.5% YoY, respectively.
• Other income grew by 60.5% YoY.
• Net profit for the year declined by 32.3% YoY.
• Net profit margins during the year declined from 15.4% in FY20 to 9.6% in FY21.

NOCIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,463	9,247	9.3%
Other income	Rs m	92	147	60.5%
Total Revenues	Rs m	8,555	9,394	9.8%
Gross profit	Rs m	1,782	1,308	-26.6%
Depreciation	Rs m	337	374	10.9%
Interest	Rs m	13	10	-26.5%
Profit before tax	Rs m	1,523	1,071	-29.7%
Tax	Rs m	217	187	-13.6%
Profit after tax	Rs m	1,307	884	-32.3%
Gross profit margin	%	21.1	14.1
Effective tax rate	%	14.2	17.5
Net profit margin	%	15.4	9.6

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NOCIL 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 49.6%.
• Current assets rose 46% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 12%.

NOCIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,794	12,793	8.5
Current Liabilities	Rs m	1,406	2,104	49.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,422	16,146	12.0
Current assets	Rs m	4,256	6,227	46.3
Fixed Assets	Rs m	10,167	9,919	-2.4
Total Assets	Rs m	14,422	16,146	12.0

NOCIL Cash Flow Statement Analysis

• NOCIL's cash flow from operating activities (CFO) during FY21 stood at Rs 936 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -621 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 355 million from the Rs -276 million net cash flows seen during FY20.

NOCIL 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	1,794	936	-47.8%
Cash Flow from Investing Activities	Rs m	-1,065	-621	-
Cash Flow from Financing Activities	Rs m	-1,008	3	-
Net Cash Flow	Rs m	-276	355	-

Current Valuations for NOCIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.3, an decline from the EPS of Rs 7.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 174.6, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	51.1	55.6
TTM Earnings per share	Rs	7.9	5.3
Diluted earnings per share	Rs	7.8	5.3
Price to Cash Flow	x	6.7	17.4
TTM P/E ratio	x	8.4	32.9
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	16,097	21,887
Dividends per share (Unadj.)	Rs	2.5	2.0

Ratio Analysis for NOCIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY21, from 3.0x 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 deteriorated and stood at 111.4x during FY21, from 116.4x 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 declined and down at 6.9% during FY21, from 11.1% 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 declined and down at 8.5% during FY21, from 13.0% 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 declined and down at 5.5% during FY21, from 9.2% 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	3.0	3.0
Debtors’ Days	Days	876	1,218
Interest coverage	x	116.4	111.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.2	5.5
Return on equity	%	11.1	6.9
Return on capital employed	%	13.0	8.5

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 up from Rs 65.8 to Rs 174.6, registering a gain of Rs 108.8 or around 165.3%.

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 NOCIL and quarterly results for NOCIL)

Read: Latest Annual Report Analysis of NOCIL