PANAMA PETRO 2022-23 Annual Report Analysis

Fri, 31 Mar

PANAMA PETRO 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.

PANAMA PETRO Income Statement Analysis

• Operating income during the year rose 5.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY23 as against 13.9% in FY22.
• Depreciation charges increased by 12.1% and finance costs increased by 63.9% YoY, respectively.
• Other income grew by 20.4% YoY.
• Net profit for the year grew by 1.1% YoY.
• Net profit margins during the year declined from 10.8% in FY22 to 10.4% in FY23.

PANAMA PETRO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,324	22,487	5.5%
Other income	Rs m	57	69	20.4%
Total Revenues	Rs m	21,381	22,556	5.5%
Gross profit	Rs m	2,960	3,087	4.3%
Depreciation	Rs m	84	94	12.1%
Interest	Rs m	71	116	63.9%
Profit before tax	Rs m	2,863	2,946	2.9%
Tax	Rs m	559	616	10.1%
Profit after tax	Rs m	2,303	2,330	1.1%
Gross profit margin	%	13.9	13.7
Effective tax rate	%	19.5	20.9
Net profit margin	%	10.8	10.4

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PANAMA PETRO Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -24.5%.
• Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 11% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 3%.

PANAMA PETRO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,682	9,521	23.9
Current Liabilities	Rs m	6,082	4,592	-24.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,856	14,223	2.6
Current assets	Rs m	11,440	11,551	1.0
Fixed Assets	Rs m	2,416	2,672	10.6
Total Assets	Rs m	13,856	14,223	2.6

PANAMA PETRO Cash Flow Statement Analysis

• PANAMA PETRO's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 23.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -787 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -960 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 347 million from the Rs -86 million net cash flows seen during FY22.

PANAMA PETRO 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	1,700	2,095	23.2%
Cash Flow from Investing Activities	Rs m	-1,110	-787	-
Cash Flow from Financing Activities	Rs m	-675	-960	-
Net Cash Flow	Rs m	-86	347	-

Current Valuations for PANAMA PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.5, an improvement from the EPS of Rs 38.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 291.5, stands at 7.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 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	352.5	371.8
TTM Earnings per share	Rs	38.1	38.5
Diluted earnings per share	Rs	38.1	38.5
Price to Cash Flow	x	6.7	8.3
TTM P/E ratio	x	7.0	7.6
Price / Book Value ratio	x	1.9	2.1
Market Cap	Rs m	14,293	20,076
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for PANAMA PETRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 1.9x 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 deteriorated and stood at 26.5x during FY23, from 41.5x 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 declined and down at 24.5% during FY23, from 30.0% 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 declined and down at 32.2% during FY23, from 38.2% 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 17.2% during FY23, from 17.1% 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	1.9	2.5
Debtors’ Days	Days	5	6
Interest coverage	x	41.5	26.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	17.2
Return on equity	%	30.0	24.5
Return on capital employed	%	38.2	32.2

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 265.2 to Rs 291.5, registering a gain of Rs 26.4 or around 9.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 17,383.4 (up 1.3%). Over the last one year it has moved down from 18,741.2 to 17,383.4, a loss of 1,358 points (down 7.2%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for PANAMA PETRO and quarterly results for PANAMA PETRO)