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OIL INDIA 2018-19 Annual Report Analysis
Sun, 31 Mar

OIL INDIA 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.

OIL INDIA Income Statement Analysis

  • Operating income during the year rose 28.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.1% in FY19 as against 36.7% in FY18.
  • Depreciation charges increased by 16.1% and finance costs increased by 12.6% YoY, respectively.
  • Other income grew by 11.6% YoY.
  • Net profit for the year grew by 8.0% YoY.
  • Net profit margins during the year declined from 18.1% in FY18 to 15.1% in FY19.

OIL INDIA Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 106,978 137,805 28.8%
Other income Rs m 10,101 11,269 11.6%
Total Revenues Rs m 117,078 149,073 27.3%
Gross profit Rs m 39,275 45,637 16.2%
Depreciation Rs m 13,266 15,407 16.1%
Interest Rs m 5,537 6,235 12.6%
Profit before tax Rs m 30,573 35,263 15.3%
Tax Rs m 11,245 14,394 28.0%
Profit after tax Rs m 19,328 20,869 8.0%
Gross profit margin % 36.7 33.1
Effective tax rate % 36.8 40.8
Net profit margin % 18.1 15.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

OIL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 109 billion as compared to Rs 60 billion in FY18, thereby witnessing an increase of 81.3%.
  • Long-term debt stood at Rs 108 billion as compared to Rs 107 billion during FY18, a growth of 0.6%.
  • Current assets rose 44% and stood at Rs 146 billion, while fixed assets rose 1% and stood at Rs 406 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 552 billion as against Rs 503 billion during FY18, thereby witnessing a growth of 10%.

OIL INDIA Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 290,300 289,745 -0.2
 
Current Liabilities Rs m 60,264 109,286 81.3
Long-term Debt Rs m 106,898 107,553 0.6
Total Liabilities Rs m 502,846 551,863 9.7
 
Current assets Rs m 101,586 146,088 43.8
Fixed Assets Rs m 401,260 405,775 1.1
Total Assets Rs m 502,846 551,863 9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



OIL INDIA Cash Flow Statement Analysis

  • OIL INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs 50 billion, an improvement of 27.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -9 billion, an improvement of 84% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 35 billion from the Rs 124 million net cash flows seen during FY18.

OIL INDIA 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 39,331 50,231 27.7%
Cash Flow from Investing Activities Rs m 14,584 -5,844 -
Cash Flow from Financing Activities Rs m -56,983 -9,402 -
Net Cash Flow Rs m 124 35,045 28,230.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for OIL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.2, an decline from the EPS of Rs 25.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 185.4, stands at 7.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.2 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 141.4 127.1
TTM Earnings per share Rs 25.5 19.2
Diluted earnings per share Rs 17.8 19.2
Price to Cash Flow x 7.2 6.2
TTM P/E ratio x 8.8 7.8
Price / Book Value ratio x 0.8 0.8
Market Cap Rs m 227,737 223,930
Dividends per share (Unadj.) Rs 15.0 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for OIL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.7x 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 6.7x during FY19, from 6.5x 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 improved and stood at 7.2% during FY19, from 6.7% 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 improved and stood at 10.4% during FY19, from 9.1% 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 declined and down at 4.9% during FY19, from 4.9% 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 1.7 1.3
Debtors’ Days Days 5 3
Interest coverage x 6.5 6.7
Debt to equity ratio x 0.4 0.4
Return on assets % 4.9 4.9
Return on equity % 6.7 7.2
Return on capital employed % 9.1 10.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

OIL INDIA Share Price Performance

Over the last one year, OIL INDIA share price has moved down from Rs 215.3 to Rs 185.4, registering a loss of Rs 30.0 or around 13.9%.

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 OIL INDIA and quarterly results for OIL INDIA)

Annual Report FAQs

What is the current share price of OIL INDIA?

OIL INDIA currently trades at Rs 600.1 per share. You can check out the latest share price performance of OIL INDIA here...

What was the revenue of OIL INDIA in FY19? How does it compare to earlier years?

The revenues of OIL INDIA stood at Rs 149,073 m in FY19, which was up 27.3% compared to Rs 117,078 m reported in FY18.

OIL INDIA's revenue has grown from Rs 110,769 m in FY16 to Rs 149,073 m in FY19.

Over the past 4 years, the revenue of OIL INDIA has grown at a CAGR of 10.4%.

What was the net profit of OIL INDIA in FY19? How does it compare to earlier years?

The net profit of OIL INDIA stood at Rs 20,869 m in FY19, which was up 8.0% compared to Rs 19,328 m reported in FY18.

This compares to a net profit of Rs 10,720 m in FY17 and a net profit of Rs 19,227 m in FY16.

Over the past 4 years, OIL INDIA net profit has grown at a CAGR of 2.8%.

What does the cash flow statement of OIL INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of OIL INDIA reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 50,231 m as compared to Rs 39,331 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -5,844 m as compared to Rs 14,584 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -9,402 m as compared to Rs -56,983 m in FY18.

Here's the cash flow statement of OIL INDIA for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations35,96631,13939,33150,231
From Investments-26,771-61,39314,584-5,844
From Financial Activity-8,71027,580-56,983-9,402
Net Cashflow4856812435,045

What does the Key Ratio analysis of OIL INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of OIL INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 33.1% in FY19 as against 36.7% in FY18.
  • Net profit margins declined from 18.1% in FY18 to 15.1% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.4 as compared to 0.4 in FY18.

Here's the ratio/financial analysis of OIL INDIA for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)34.320.636.733.1
Net Profit Margin (%)19.611.218.115.1
Debt to Equity Ratio (x)0.40.30.40.4

Read: Latest Annual Report Analysis of OIL INDIA

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