OIL INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

OIL INDIA 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.

OIL INDIA Income Statement Analysis

• Operating income during the year fell 23.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.1% in FY21 as against 30.6% in FY20.
• Depreciation charges increased by 3.3% and finance costs increased by 2.1% YoY, respectively.
• Other income declined by 17.0% YoY.
• Net profit for the year declined by 8.4% YoY.
• Net profit margins during the year grew from 23.8% in FY20 to 28.3% in FY21.

OIL INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	165,850	127,615	-23.1%
Other income	Rs m	13,227	10,974	-17.0%
Total Revenues	Rs m	179,077	138,589	-22.6%
Gross profit	Rs m	50,831	52,477	3.2%
Depreciation	Rs m	17,857	18,441	3.3%
Interest	Rs m	6,467	6,605	2.1%
Profit before tax	Rs m	39,734	38,405	-3.3%
Tax	Rs m	247	2,227	801.5%
Profit after tax	Rs m	39,487	36,178	-8.4%
Gross profit margin	%	30.6	41.1
Effective tax rate	%	0.6	5.8
Net profit margin	%	23.8	28.3

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OIL INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 141 billion as compared to Rs 180 billion in FY20, thereby witnessing an decrease of -21.5%.
• Long-term debt stood at Rs 151 billion as compared to Rs 127 billion during FY20, a growth of 19.2%.
• Current assets fell 7% and stood at Rs 144 billion, while fixed assets rose 1% and stood at Rs 443 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 587 billion as against Rs 594 billion during FY20, thereby witnessing a fall of 1%.

OIL INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	232,108	236,664	2.0
Current Liabilities	Rs m	179,912	141,290	-21.5
Long-term Debt	Rs m	126,695	151,055	19.2
Total Liabilities	Rs m	593,665	586,787	-1.2
Current assets	Rs m	154,496	143,934	-6.8
Fixed Assets	Rs m	439,169	442,853	0.8
Total Assets	Rs m	593,665	586,787	-1.2

OIL INDIA Cash Flow Statement Analysis

• OIL INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 52 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -85 billion, an improvement of 285.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 37 billion, an improvement of 150% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs -30 billion net cash flows seen during FY20.

OIL INDIA 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	64,926	52,437	-19.2%
Cash Flow from Investing Activities	Rs m	-22,130	-85,212	-
Cash Flow from Financing Activities	Rs m	-73,313	37,020	-
Net Cash Flow	Rs m	-30,453	4,200	-

Current Valuations for OIL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.4, an decline from the EPS of Rs 36.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.7, stands at 4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 2.1 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	152.9	117.7
TTM Earnings per share	Rs	36.4	33.4
Diluted earnings per share	Rs	36.4	33.4
Price to Cash Flow	x	1.6	2.1
TTM P/E ratio	x	3.6	4.9
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	138,045	115,977
Dividends per share (Unadj.)	Rs	10.6	5.0

Ratio Analysis for OIL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.9x 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 6.8x during FY21, from 7.1x 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 15.3% during FY21, from 17.0% 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 11.6% during FY21, from 12.9% 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 7.3% during FY21, from 7.7% 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	0.9	1.0
Debtors’ Days	Days	3	5
Interest coverage	x	7.1	6.8
Debt to equity ratio	x	0.5	0.6
Return on assets	%	7.7	7.3
Return on equity	%	17.0	15.3
Return on capital employed	%	12.9	11.6

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 up from Rs 82.7 to Rs 122.7, registering a gain of Rs 40.0 or around 48.3%.

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 OIL INDIA and quarterly results for OIL INDIA)

Read: Latest Annual Report Analysis of OIL INDIA