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NOCIL 2017-18 Annual Report Analysis

Sat, 31 Mar

NOCIL 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.

NOCIL Income Statement Analysis

• Operating income during the year rose 42.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.1% in FY18 as against 23.9% in FY17.
• Depreciation charges increased by 21.8% and finance costs decreased by 45.0% YoY, respectively.
• Other income grew by 52.8% YoY.
• Net profit for the year grew by 75.0% YoY.
• Net profit margins during the year grew from 14.6% in FY17 to 18.0% in FY18.

NOCIL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	6,661	9,460	42.0%
Other income	Rs m	95	146	52.8%
Total Revenues	Rs m	6,757	9,606	42.2%
Gross profit	Rs m	1,592	2,654	66.7%
Depreciation	Rs m	197	240	21.8%
Interest	Rs m	22	12	-45.0%
Profit before tax	Rs m	1,468	2,547	73.5%
Tax	Rs m	497	848	70.7%
Profit after tax	Rs m	971	1,699	75.0%
Gross profit margin	%	23.9	28.1
Effective tax rate	%	33.8	33.3
Net profit margin	%	14.6	18.0

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NOCIL Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 37.6%.
• Current assets rose 61% and stood at Rs 7 billion, while fixed assets fell 12% and stood at Rs 7 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 12 billion during FY17, thereby witnessing a growth of 15%.

NOCIL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	9,105	10,431	14.6
Current Liabilities	Rs m	1,195	1,644	37.6
Long-term Debt	Rs m	50	0	-100.0
Total Liabilities	Rs m	11,609	13,311	14.7
Current assets	Rs m	4,171	6,732	61.4
Fixed Assets	Rs m	7,439	6,579	-11.6
Total Assets	Rs m	11,609	13,311	14.7

NOCIL Cash Flow Statement Analysis

• NOCIL's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 1,378.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -426 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -816 million from the Rs 1 billion net cash flows seen during FY17.

NOCIL 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	1,422	1,023	-28.0%
Cash Flow from Investing Activities	Rs m	-96	-1,415	-
Cash Flow from Financing Activities	Rs m	-306	-426	-
Net Cash Flow	Rs m	1,020	-816	-

Current Valuations for NOCIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.3, an improvement from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 191.4, stands at 18.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.9 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	40.7	57.5
TTM Earnings per share	Rs	5.9	10.3
Diluted earnings per share	Rs	5.8	10.2
Price to Cash Flow	x	13.4	13.9
TTM P/E ratio	x	13.0	18.9
Price / Book Value ratio	x	1.3	2.6
Market Cap	Rs m	11,529	26,892
Dividends per share (Unadj.)	Rs	1.8	2.5

Ratio Analysis for NOCIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY18, from 3.5x 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 209.8x during FY18, from 67.1x 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 16.3% during FY18, from 10.7% 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 24.5% during FY18, from 16.3% 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 12.9% during FY18, from 8.6% 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	3.5	4.1
Debtors’ Days	Days	913	939
Interest coverage	x	67.1	209.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.6	12.9
Return on equity	%	10.7	16.3
Return on capital employed	%	16.3	24.5

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 93.9 to Rs 191.4, registering a gain of Rs 97.5 or around 103.9%.

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 NOCIL and quarterly results for NOCIL)

Read: Latest Annual Report Analysis of NOCIL