OIL INDIA 2019-20 Annual Report Analysis

Tue, 31 Mar

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 rose 20.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.6% in FY20 as against 33.1% in FY19.
• Depreciation charges increased by 15.9% and finance costs increased by 3.7% YoY, respectively.
• Other income grew by 17.4% YoY.
• Net profit for the year grew by 89.2% YoY.
• Net profit margins during the year grew from 15.1% in FY19 to 23.8% 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	165,850	20.4%
Other income	Rs m	11,269	13,227	17.4%
Total Revenues	Rs m	149,073	179,077	20.1%
Gross profit	Rs m	45,637	50,831	11.4%
Depreciation	Rs m	15,407	17,857	15.9%
Interest	Rs m	6,235	6,467	3.7%
Profit before tax	Rs m	35,263	39,734	12.7%
Tax	Rs m	14,394	247	-98.3%
Profit after tax	Rs m	20,869	39,487	89.2%
Gross profit margin	%	33.1	30.6
Effective tax rate	%	40.8	0.6
Net profit margin	%	15.1	23.8

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OIL INDIA Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 180 billion as compared to Rs 109 billion in FY19, thereby witnessing an increase of 64.6%.
• Long-term debt stood at Rs 127 billion as compared to Rs 108 billion during FY19, a growth of 17.8%.
• Current assets rose 6% and stood at Rs 154 billion, while fixed assets rose 8% and stood at Rs 439 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 594 billion as against Rs 552 billion during FY19, thereby witnessing a growth of 8%.

OIL INDIA Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	289,745	232,108	-19.9
Current Liabilities	Rs m	109,286	179,912	64.6
Long-term Debt	Rs m	107,553	126,695	17.8
Total Liabilities	Rs m	551,863	593,665	7.6
Current assets	Rs m	146,088	154,496	5.8
Fixed Assets	Rs m	405,775	439,169	8.2
Total Assets	Rs m	551,863	593,665	7.6

OIL INDIA Cash Flow Statement Analysis

• OIL INDIA's cash flow from operating activities (CFO) during FY20 stood at Rs 65 billion, an improvement of 29.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -22 billion, an improvement of 278.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -73 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -30 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	64,926	29.3%
Cash Flow from Investing Activities	Rs m	-5,844	-22,130	-
Cash Flow from Financing Activities	Rs m	-9,402	-73,313	-
Net Cash Flow	Rs m	35,045	-30,453	-

Current Valuations for OIL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.4, an improvement from the EPS of Rs 19.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 82.7, stands at 3.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 2.4 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	152.9
TTM Earnings per share	Rs	19.2	36.4
Diluted earnings per share	Rs	19.2	36.4
Price to Cash Flow	x	5.5	2.4
TTM P/E ratio	x	7.8	3.6
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	223,930	138,045
Dividends per share (Unadj.)	Rs	10.3	10.6

Ratio Analysis for OIL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY20, from 1.3x 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 improved and stood at 7.1x during FY20, from 6.7x 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 17.0% during FY20, from 7.2% 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 improved and stood at 12.9% during FY20, from 10.4% 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 7.7% during FY20, from 4.9% 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	1.3	0.9
Debtors’ Days	Days	3	3
Interest coverage	x	6.7	7.1
Debt to equity ratio	x	0.4	0.5
Return on assets	%	4.9	7.7
Return on equity	%	7.2	17.0
Return on capital employed	%	10.4	12.9

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 185.4 to Rs 82.7, registering a loss of Rs 102.7 or around 55.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 10,020.9 (up 8.7%). Over the last one year it has moved down from 15,269.7 to 10,020.9, a loss of 5,249 points (down 34.4%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Read: Latest Annual Report Analysis of OIL INDIA