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PANAMA PETRO 2020-21 Annual Report Analysis
Wed, 31 Mar

PANAMA PETRO 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.

PANAMA PETRO Income Statement Analysis

  • Operating income during the year rose 44.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 256.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY21 as against 5.3% in FY20.
  • Depreciation charges increased by 5.0% and finance costs decreased by 48.7% YoY, respectively.
  • Other income grew by 75.7% YoY.
  • Net profit for the year grew by 370.3% YoY.
  • Net profit margins during the year grew from 2.9% in FY20 to 9.4% in FY21.

PANAMA PETRO Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 10,028 14,470 44.3%
Other income Rs m 36 63 75.7%
Total Revenues Rs m 10,064 14,533 44.4%
Gross profit Rs m 532 1,898 256.4%
Depreciation Rs m 73 76 5.0%
Interest Rs m 174 89 -48.7%
Profit before tax Rs m 321 1,795 458.4%
Tax Rs m 34 442 1,211.5%
Profit after tax Rs m 288 1,354 370.3%
Gross profit margin % 5.3 13.1
Effective tax rate % 10.5 24.6
Net profit margin % 2.9 9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PANAMA PETRO Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 32.9%.
  • Current assets rose 38% and stood at Rs 9 billion, while fixed assets rose 9% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 11 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 31%.

PANAMA PETRO Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 4,330 5,610 29.5
 
Current Liabilities Rs m 3,876 5,152 32.9
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 8,294 10,866 31.0
 
Current assets Rs m 6,383 8,782 37.6
Fixed Assets Rs m 1,912 2,084 9.0
Total Assets Rs m 8,294 10,866 31.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PANAMA PETRO Cash Flow Statement Analysis

  • PANAMA PETRO's cash flow from operating activities (CFO) during FY21 stood at Rs 552 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -142 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -7 million, an improvement of 99% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 400 million from the Rs 230 million net cash flows seen during FY20.

PANAMA PETRO 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 1,788 552 -69.1%
Cash Flow from Investing Activities Rs m -210 -142 -
Cash Flow from Financing Activities Rs m -1,363 -7 -
Net Cash Flow Rs m 230 400 74.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PANAMA PETRO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.4, an improvement from the EPS of Rs 4.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 145.5, stands at 6.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.6 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 165.8 239.2
TTM Earnings per share Rs 4.8 22.4
Diluted earnings per share Rs 4.8 22.4
Price to Cash Flow x 5.0 4.6
TTM P/E ratio x 6.3 6.5
Price / Book Value ratio x 1.1 1.2
Market Cap Rs m 4,912 6,538
Dividends per share (Unadj.) Rs 1.2 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PANAMA PETRO

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.6x 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 improved and stood at 21.1x during FY21, from 2.8x 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 improved and stood at 24.1% during FY21, from 6.6% 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 improved and stood at 33.6% during FY21, from 11.5% 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 improved and stood at 13.3% during FY21, from 5.6% 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 1.6 1.7
Debtors’ Days Days 914 815
Interest coverage x 2.8 21.1
Debt to equity ratio x 0.0 0.0
Return on assets % 5.6 13.3
Return on equity % 6.6 24.1
Return on capital employed % 11.5 33.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PANAMA PETRO has performed over the last 5 years, please visit here.

PANAMA PETRO Share Price Performance

Over the last one year, PANAMA PETRO share price has moved up from Rs 30.1 to Rs 145.5, registering a gain of Rs 115.4 or around 384.0%.

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 PANAMA PETRO and quarterly results for PANAMA PETRO)

Annual Report FAQs

What is the current share price of PANAMA PETRO?

PANAMA PETRO currently trades at Rs 331.0 per share. You can check out the latest share price performance of PANAMA PETRO here...

What was the revenue of PANAMA PETRO in FY21? How does it compare to earlier years?

The revenues of PANAMA PETRO stood at Rs 14,533 m in FY21, which was up 44.4% compared to Rs 10,064 m reported in FY20.

PANAMA PETRO's revenue has grown from Rs 7,718 m in FY17 to Rs 14,533 m in FY21.

Over the past 5 years, the revenue of PANAMA PETRO has grown at a CAGR of 17.1%.

What was the net profit of PANAMA PETRO in FY21? How does it compare to earlier years?

The net profit of PANAMA PETRO stood at Rs 1,354 m in FY21, which was up 370.3% compared to Rs 288 m reported in FY20.

This compares to a net profit of Rs 519 m in FY19 and a net profit of Rs 610 m in FY18.

Over the past 5 years, PANAMA PETRO net profit has grown at a CAGR of 32.6%.

What does the cash flow statement of PANAMA PETRO reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PANAMA PETRO reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 552 m as compared to Rs 1,788 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -142 m as compared to Rs -210 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -7 m as compared to Rs -1,363 m in FY20.

Here's the cash flow statement of PANAMA PETRO for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations586339-7831,788552
From Investments-209-144-216-210-142
From Financial Activity-360-61812-1,363-7
Net Cashflow17136-195230400

What does the Key Ratio analysis of PANAMA PETRO reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PANAMA PETRO reveals:

  • Operating profit margins witnessed a fall and down at 13.1% in FY21 as against 5.3% in FY20.
  • Net profit margins grew from 2.9% in FY20 to 9.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of PANAMA PETRO for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)9.88.27.95.313.1
Net Profit Margin (%)5.74.74.12.99.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of PANAMA PETRO

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