We are currently facing an issue in receiving the NSE feed. Hence the stock prices are not updated. We are working on fixing this at the earliest. We regret the inconvenience caused.

OIL INDIA 2022-23 Annual Report Analysis

Tue, 22 Aug

OIL INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

OIL INDIA Income Statement Analysis

• Operating income during the year rose 42.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 48.9% in FY23 as against 48.5% in FY22.
• Depreciation charges increased by 6.7% and finance costs decreased by 4.2% YoY, respectively.
• Other income declined by 37.4% YoY.
• Net profit for the year grew by 46.7% YoY.
• Net profit margins during the year grew from 30.8% in FY22 to 31.6% in FY23.

OIL INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	218,000	311,558	42.9%
Other income	Rs m	11,924	7,461	-37.4%
Total Revenues	Rs m	229,924	319,019	38.7%
Gross profit	Rs m	105,624	152,456	44.3%
Depreciation	Rs m	18,245	19,469	6.7%
Interest	Rs m	9,401	9,009	-4.2%
Profit before tax	Rs m	89,902	131,439	46.2%
Tax	Rs m	22,710	32,895	44.8%
Profit after tax	Rs m	67,192	98,544	46.7%
Gross profit margin	%	48.5	48.9
Effective tax rate	%	25.3	25.0
Net profit margin	%	30.8	31.6

RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

OIL INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 122 billion as compared to Rs 102 billion in FY22, thereby witnessing an increase of 19.1%.
• Long-term debt stood at Rs 182 billion as compared to Rs 164 billion during FY22, a growth of 11.3%.
• Current assets rose 32% and stood at Rs 178 billion, while fixed assets rose 19% and stood at Rs 615 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 793 billion as against Rs 653 billion during FY22, thereby witnessing a growth of 21%.

OIL INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	305,619	384,815	25.9
Current Liabilities	Rs m	102,068	121,527	19.1
Long-term Debt	Rs m	163,884	182,459	11.3
Total Liabilities	Rs m	653,335	793,484	21.5
Current assets	Rs m	135,092	178,492	32.1
Fixed Assets	Rs m	518,243	614,992	18.7
Total Assets	Rs m	653,335	793,484	21.5

OIL INDIA Cash Flow Statement Analysis

• OIL INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 114 billion, an improvement of 22.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -91 billion, an improvement of 117.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -25 billion, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs -5 billion net cash flows seen during FY22.

OIL INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	93,096	114,104	22.6%
Cash Flow from Investing Activities	Rs m	-41,931	-91,314	-
Cash Flow from Financing Activities	Rs m	-56,153	-25,213	-
Net Cash Flow	Rs m	-4,978	-2,409	-

Current Valuations for OIL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 90.9, an improvement from the EPS of Rs 62.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 291.5, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 2.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	201.0	287.3
TTM Earnings per share	Rs	62.0	90.9
Diluted earnings per share	Rs	62.0	90.9
Price to Cash Flow	x	3.0	2.2
TTM P/E ratio	x	3.9	3.9
Price / Book Value ratio	x	0.7	0.7
Market Cap	Rs m	205,874	257,167
Dividends per share (Unadj.)	Rs	14.3	20.0

Ratio Analysis for OIL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.3x during FY22. 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 15.6x during FY23, from 10.6x during FY22. 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 25.6% during FY23, from 22.0% during FY23. 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 24.8% during FY23, from 21.2% during FY22. 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 13.6% during FY23, from 11.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.5
Debtors’ Days	Days	3	3
Interest coverage	x	10.6	15.6
Debt to equity ratio	x	0.5	0.5
Return on assets	%	11.7	13.6
Return on equity	%	22.0	25.6
Return on capital employed	%	21.2	24.8

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 185.0 to Rs 291.5, registering a gain of Rs 106.6 or around 57.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,876.9 (up 0.1%). Over the last one year it has moved down from 19,433.2 to 18,876.9, a loss of 556 points (down 2.9%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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