OIL INDIA 2019-20 Annual Report Analysis

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OIL INDIA 2019-20 Annual Report Analysis
Mon, 28 Dec

OIL INDIA has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

OIL INDIA Income Statement Analysis

  • Operating income during the year fell 11.7% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 42.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.4% in FY20 as against 40.6% in FY19.
  • Depreciation charges decreased by 0.3% and finance costs increased by 3.4% YoY, respectively.
  • Other income grew by 2.1% YoY.
  • Net profit for the year grew by 17.8% YoY.
  • Net profit margins during the year grew from 21.7% in FY19 to 28.7% in FY20.

OIL INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 137,805 121,666 -11.7%
Other income Rs m 11,269 11,508 2.1%
Total Revenues Rs m 149,073 133,174 -10.7%
Gross profit Rs m 55,905 32,138 -42.5%
Depreciation Rs m 15,407 15,368 -0.3%
Interest Rs m 6,235 6,446 3.4%
Profit before tax Rs m 45,531 21,831 -52.1%
Tax Rs m 14,394 -3,149 -121.9%
Profit after tax Rs m 32,378 38,156 17.8%
Gross profit margin % 40.6 26.4
Effective tax rate % 31.6 -14.4
Net profit margin % 21.7 28.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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OIL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 57 billion as compared to Rs 82 billion in FY19, thereby witnessing an decrease of -30.6%.
  • Long-term debt stood at Rs 127 billion as compared to Rs 108 billion during FY19, a growth of 17.8%.
  • Current assets fell 16% and stood at Rs 100 billion, while fixed assets rose 8% and stood at Rs 149 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 514 billion as against Rs 524 billion during FY19, thereby witnessing a fall of 2%.

OIL INDIA Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 296,945 288,487 -2.8
 
Current Liabilities Rs m 81,746 56,714 -30.6
Long-term Debt Rs m 107,553 126,695 17.8
Total Liabilities Rs m 524,324 514,434 -1.9
 
Current assets Rs m 118,549 100,039 -15.6
Fixed Assets Rs m 137,384 149,051 8.5
Total Assets Rs m 524,324 514,434 -1.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



OIL INDIA Cash Flow Statement Analysis

  • OIL INDIA's cash flow from operating activities (CFO) during FY20 stood at Rs 53 billion, an improvement of 5.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -27 billion, an improvement of 366.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -57 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -31 billion from the Rs 35 billion net cash flows seen during FY19.

OIL INDIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 50,231 53,049 5.6%
Cash Flow from Investing Activities Rs m -5,844 -27,253 -
Cash Flow from Financing Activities Rs m -9,402 -56,987 -
Net Cash Flow Rs m 35,045 -31,127 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for OIL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.2, an improvement from the EPS of Rs 29.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 110.7, stands at 7.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 127.1 112.2
TTM Earnings per share Rs 29.9 35.2
Diluted earnings per share Rs 29.9 35.2
Price to Cash Flow x 2.6 3.0
TTM P/E ratio x 7.0 7.0
Price / Book Value ratio x 0.8 0.5
Market Cap Rs m 119,990 119,989
Dividends per share (Unadj.) Rs 10.3 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for OIL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY20, from 1.5x during FY19. 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 4.4x during FY20, from 8.3x during FY19. 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 13.2% during FY20, from 10.9% during FY20. 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 10.0% during FY20, from 13.1% during FY19. 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 8.7% during FY20, from 7.4% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.5 1.8
Debtors’ Days Days 35 33
Interest coverage x 8.3 4.4
Debt to equity ratio x 0.4 0.4
Return on assets % 7.4 8.7
Return on equity % 10.9 13.2
Return on capital employed % 13.1 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 150.9 to Rs 110.7, registering a loss of Rs 40.3 or around 26.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,122.5 (up 1.1%). Over the last one year it has moved down from 14,799.1 to 14,122.5, a loss of 677 points (down 4.6%).

Overall, the S&P BSE SENSEX is up 13.4% over the year.

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

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Related Views on News

OIL INDIA Announces Quarterly Results (1QFY21); Net Profit Down 139.8% (Quarterly Result Update)

Aug 31, 2020 | Updated on Aug 31, 2020

For the quarter ended June 2020, OIL INDIA has posted a net profit of Rs 2 bn (down 139.8% YoY). Sales on the other hand came in at Rs 17 bn (down 48.3% YoY). Read on for a complete analysis of OIL INDIA's quarterly results.

OIL INDIA Announces Quarterly Results (3QFY20); Net Profit Down 67.1% (Quarterly Result Update)

Feb 12, 2020 | Updated on Feb 12, 2020

For the quarter ended December 2019, OIL INDIA has posted a net profit of Rs 4 bn (down 67.1% YoY). Sales on the other hand came in at Rs 30 bn (down 16.0% YoY). Read on for a complete analysis of OIL INDIA's quarterly results.

OIL INDIA 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of OIL INDIA for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of OIL INDIA. Also includes updates on the valuation of OIL INDIA.

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