OIL INDIA 2021-22 Annual Report Analysis

Tue, 6 Sep

OIL INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

OIL INDIA Income Statement Analysis

• Operating income during the year rose 71.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 102.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.9% in FY22 as against 40.4% in FY21.
• Depreciation charges decreased by 1.1% and finance costs increased by 42.3% YoY, respectively.
• Other income declined by 0.2% YoY.
• Net profit for the year grew by 82.6% YoY.
• Net profit margins during the year grew from 28.4% in FY21 to 30.3% in FY22.

OIL INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	127,480	218,000	71.0%
Other income	Rs m	11,948	11,924	-0.2%
Total Revenues	Rs m	139,428	229,924	64.9%
Gross profit	Rs m	51,503	104,505	102.9%
Depreciation	Rs m	18,441	18,245	-1.1%
Interest	Rs m	6,605	9,401	42.3%
Profit before tax	Rs m	38,405	88,784	131.2%
Tax	Rs m	2,227	22,710	919.9%
Profit after tax	Rs m	36,178	66,074	82.6%
Gross profit margin	%	40.4	47.9
Effective tax rate	%	5.8	25.6
Net profit margin	%	28.4	30.3

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OIL INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 102 billion as compared to Rs 140 billion in FY21, thereby witnessing an decrease of -26.9%.
• Long-term debt stood at Rs 164 billion as compared to Rs 151 billion during FY21, a growth of 8.5%.
• Current assets fell 2% and stood at Rs 135 billion, while fixed assets rose 15% and stood at Rs 518 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 653 billion as against Rs 587 billion during FY21, thereby witnessing a growth of 11%.

OIL INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	236,664	305,619	29.1
Current Liabilities	Rs m	139,682	102,068	-26.9
Long-term Debt	Rs m	151,055	163,884	8.5
Total Liabilities	Rs m	586,787	653,335	11.3
Current assets	Rs m	137,170	135,092	-1.5
Fixed Assets	Rs m	449,618	518,243	15.3
Total Assets	Rs m	586,787	653,335	11.3

OIL INDIA Cash Flow Statement Analysis

• OIL INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 93 billion, an improvement of 77.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -42 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -56 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -5 billion from the Rs 4 billion net cash flows seen during FY21.

OIL INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	52,353	93,096	77.8%
Cash Flow from Investing Activities	Rs m	-85,128	-41,931	-
Cash Flow from Financing Activities	Rs m	37,020	-56,153	-
Net Cash Flow	Rs m	4,200	-4,978	-

Current Valuations for OIL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.9, an improvement from the EPS of Rs 33.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 193.8, stands at 2.4 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 1.0 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-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	117.6	201.0
TTM Earnings per share	Rs	33.4	60.9
Diluted earnings per share	Rs	33.4	60.9
Price to Cash Flow	x	2.4	2.4
TTM P/E ratio	x	4.9	2.4
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	115,977	205,874
Dividends per share (Unadj.)	Rs	5.0	14.3

Ratio Analysis for OIL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.0x during FY21. 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 10.4x during FY22, from 6.8x during FY21. 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 21.6% during FY22, from 15.3% during FY22. 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 20.9% during FY22, from 11.6% during FY21. 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 11.6% during FY22, from 7.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.0	1.3
Debtors’ Days	Days	5	3
Interest coverage	x	6.8	10.4
Debt to equity ratio	x	0.6	0.5
Return on assets	%	7.3	11.6
Return on equity	%	15.3	21.6
Return on capital employed	%	11.6	20.9

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 up from Rs 176.2 to Rs 193.8, registering a gain of Rs 17.6 or around 10.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,936.9 (up 1.4%). Over the last one year it has moved up from 17,436.4 to 19,936.9, a gain of 2,500 points (up 14.3%).

Overall, the S&P BSE SENSEX is up 2.3% 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