OIL INDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

OIL INDIA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

OIL INDIA Income Statement Analysis

• Operating income during the year rose 11.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 99.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.7% in FY18 as against 20.6% in FY17.
• Depreciation charges increased by 12.4% and finance costs increased by 25.7% YoY, respectively.
• Other income declined by 28.9% YoY.
• Net profit for the year grew by 80.3% YoY.
• Net profit margins during the year grew from 11.2% in FY17 to 18.1% in FY18.

OIL INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	95,664	106,978	11.8%
Other income	Rs m	14,208	10,101	-28.9%
Total Revenues	Rs m	109,871	117,078	6.6%
Gross profit	Rs m	19,678	39,275	99.6%
Depreciation	Rs m	11,804	13,266	12.4%
Interest	Rs m	4,406	5,537	25.7%
Profit before tax	Rs m	17,675	30,573	73.0%
Tax	Rs m	6,955	11,245	61.7%
Profit after tax	Rs m	10,720	19,328	80.3%
Gross profit margin	%	20.6	36.7
Effective tax rate	%	39.4	36.8
Net profit margin	%	11.2	18.1

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OIL INDIA Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 60 billion as compared to Rs 95 billion in FY17, thereby witnessing an decrease of -36.6%.
• Long-term debt stood at Rs 107 billion as compared to Rs 89 billion during FY17, a growth of 19.5%.
• Current assets fell 21% and stood at Rs 102 billion, while fixed assets rose 2% and stood at Rs 401 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 503 billion as against Rs 522 billion during FY17, thereby witnessing a fall of 4%.

OIL INDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	295,194	290,300	-1.7
Current Liabilities	Rs m	95,095	60,264	-36.6
Long-term Debt	Rs m	89,475	106,898	19.5
Total Liabilities	Rs m	522,036	502,846	-3.7
Current assets	Rs m	128,623	101,586	-21.0
Fixed Assets	Rs m	393,413	401,260	2.0
Total Assets	Rs m	522,036	502,846	-3.7

OIL INDIA Cash Flow Statement Analysis

• OIL INDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 39 billion, an improvement of 26.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -57 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 124 million from the Rs 68 million net cash flows seen during FY17.

OIL INDIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	31,139	39,331	26.3%
Cash Flow from Investing Activities	Rs m	-61,393	14,584	-
Cash Flow from Financing Activities	Rs m	27,580	-56,983	-
Net Cash Flow	Rs m	68	124	81.6%

Current Valuations for OIL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.5, an improvement from the EPS of Rs 13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 215.3, stands at 8.8 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 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	119.4	141.4
TTM Earnings per share	Rs	13.4	25.5
Diluted earnings per share	Rs	9.9	17.8
Price to Cash Flow	x	16.1	7.0
TTM P/E ratio	x	13.4	8.8
Price / Book Value ratio	x	1.1	0.8
Market Cap	Rs m	321,407	227,737
Dividends per share (Unadj.)	Rs	14.3	15.0

Ratio Analysis for OIL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY18, from 1.4x during FY17. 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 6.5x during FY18, from 5.0x during FY17. 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 6.7% during FY18, from 3.6% during FY18. 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 9.1% during FY18, from 5.7% during FY17. 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 4.9% during FY18, from 2.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.4	1.7
Debtors’ Days	Days	4	5
Interest coverage	x	5.0	6.5
Debt to equity ratio	x	0.3	0.4
Return on assets	%	2.9	4.9
Return on equity	%	3.6	6.7
Return on capital employed	%	5.7	9.1

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 333.6 to Rs 215.3, registering a loss of Rs 118.3 or around 35.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,614.4 (up 0.1%). Over the last one year it has moved up from 13,563.6 to 14,614.4, a gain of 1,051 points (up 7.7%).

Overall, the S&P BSE SENSEX is up 12.1% 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