PETRONET LNG 2017-18 Annual Report Analysis

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PETRONET LNG 2017-18 Annual Report Analysis
Fri, 21 Dec

PETRONET LNG 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.

PETRONET LNG Income Statement Analysis

  • Operating income during the year rose 24.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 27.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY18 as against 10.5% in FY17.
  • Depreciation charges increased by 11.5% and finance costs decreased by 22.3% YoY, respectively.
  • Other income declined by 8.4% YoY.
  • Net profit for the year grew by 22.5% YoY.
  • Net profit margins during the year declined from 6.9% in FY17 to 6.8% in FY18.

PETRONET LNG Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 246,160 305,986 24.3%
Other income Rs m 3,466 3,174 -8.4%
Total Revenues Rs m 249,627 309,160 23.8%
Gross profit Rs m 25,923 33,124 27.8%
Depreciation Rs m 3,691 4,117 11.5%
Interest Rs m 2,097 1,630 -22.3%
Profit before tax Rs m 23,602 30,551 29.4%
Tax Rs m 6,545 9,773 49.3%
Profit after tax Rs m 17,231 21,104 22.5%
Gross profit margin % 10.5 10.8
Effective tax rate % 27.7 32.0
Net profit margin % 6.9 6.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PETRONET LNG Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 29 billion as compared to Rs 22 billion in FY17, thereby witnessing an increase of 32.3%.
  • Long-term debt down at Rs 7 billion as compared to Rs 15 billion during FY17, a fall of 49.4%.
  • Current assets rose 43% and stood at Rs 70 billion, while fixed assets fell 3% and stood at Rs 82 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 157 billion as against Rs 139 billion during FY17, thereby witnessing a growth of 13%.

PETRONET LNG Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 81,784 98,113 20.0
 
Current Liabilities Rs m 21,627 28,602 32.3
Long-term Debt Rs m 14,500 7,334 -49.4
Total Liabilities Rs m 139,136 157,445 13.2
 
Current assets Rs m 49,026 70,271 43.3
Fixed Assets Rs m 84,716 82,499 -2.6
Total Assets Rs m 139,136 157,445 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PETRONET LNG Cash Flow Statement Analysis

  • PETRONET LNG's cash flow from operating activities (CFO) during FY18 stood at Rs 30 billion, an improvement of 44.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -11 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -13 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 5 billion from the Rs -19 billion net cash flows seen during FY17.

PETRONET LNG 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 20,676 29,956 44.9%
Cash Flow from Investing Activities Rs m -31,751 -11,266 -
Cash Flow from Financing Activities Rs m -7,482 -13,347 -
Net Cash Flow Rs m -18,557 5,343 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PETRONET LNG

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an decline from the EPS of Rs 23.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 223.3, stands at 15.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.5 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 328.2 204.0
TTM Earnings per share Rs 23.0 14.1
Diluted earnings per share Rs 11.5 14.1
Price to Cash Flow x 8.1 13.5
TTM P/E ratio x 7.6 15.2
Price / Book Value ratio x 3.0 5.0
Market Cap Rs m 167,438 334,875
Dividends per share (Unadj.) Rs 5.0 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PETRONET LNG

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.5x during FY18, from 2.3x 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 deteriorated and stood at 19.7x during FY18, from 12.3x 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 21.5% during FY18, from 21.1% 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 30.8% during FY18, from 26.9% 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 14.4% during FY18, from 13.9% 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 2.3 2.5
Debtors’ Days Days 18 20
Interest coverage x 12.3 19.7
Debt to equity ratio x 0.2 0.1
Return on assets % 13.9 14.4
Return on equity % 21.1 21.5
Return on capital employed % 26.9 30.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how PETRONET LNG has performed over the last 5 years, please visit here.

PETRONET LNG Share Price Performance

Over the last one year, PETRONET LNG share price has moved up from Rs 250.7 to Rs 223.3, registering a loss of Rs 27.4 or around 10.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,754.3 (down 0.5%). Over the last one year it has moved down from 16,390.0 to 13,754.3, a loss of 2,636 points (down 16.1%).

Overall, the S&P BSE SENSEX is up 7.6% over the year.

(To know more, check out historical annual results for PETRONET LNG and quarterly results for PETRONET LNG)

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PETRONET LNG Announces Quarterly Results (3QFY20); Net Profit Up 19.4% (Quarterly Result Update)

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For the quarter ended December 2019, PETRONET LNG has posted a net profit of Rs 7 bn (up 19.4% YoY). Sales on the other hand came in at Rs 89 bn (down 11.8% YoY). Read on for a complete analysis of PETRONET LNG's quarterly results.

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PETRONET LNG 2018-19 Annual Report Analysis (Annual Result Update)

Oct 18, 2019 | Updated on Oct 18, 2019

Here's an analysis of the annual report of PETRONET LNG for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of PETRONET LNG. Also includes updates on the valuation of PETRONET LNG.

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