PETRONET LNG 2020-21 Annual Report Analysis

Wed, 31 Mar

PETRONET LNG 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.

PETRONET LNG Income Statement Analysis

• Operating income during the year fell 26.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.1% in FY21 as against 11.0% in FY20.
• Depreciation charges increased by 1.0% and finance costs decreased by 16.7% YoY, respectively.
• Other income declined by 1.2% YoY.
• Net profit for the year grew by 8.6% YoY.
• Net profit margins during the year grew from 7.6% in FY20 to 11.2% in FY21.

PETRONET LNG Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	354,520	260,229	-26.6%
Other income	Rs m	3,636	3,591	-1.2%
Total Revenues	Rs m	358,156	263,820	-26.3%
Gross profit	Rs m	39,174	46,995	20.0%
Depreciation	Rs m	7,761	7,841	1.0%
Interest	Rs m	4,032	3,360	-16.7%
Profit before tax	Rs m	31,017	39,386	27.0%
Tax	Rs m	4,131	10,183	146.5%
Profit after tax	Rs m	26,886	29,203	8.6%
Gross profit margin	%	11.0	18.1
Effective tax rate	%	13.3	25.9
Net profit margin	%	7.6	11.2

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PETRONET LNG Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 21 billion as compared to Rs 22 billion in FY20, thereby witnessing an decrease of -4.6%.
• Long-term debt down at Rs 230 million as compared to Rs 644 million during FY20, a fall of 64.3%.
• Current assets rose 16% and stood at Rs 82 billion, while fixed assets fell 8% and stood at Rs 109 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 191 billion as against Rs 189 billion during FY20, thereby witnessing a growth of 1%.

PETRONET LNG Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	111,209	118,069	6.2
Current Liabilities	Rs m	21,741	20,744	-4.6
Long-term Debt	Rs m	644	230	-64.3
Total Liabilities	Rs m	188,669	190,900	1.2
Current assets	Rs m	70,488	81,619	15.8
Fixed Assets	Rs m	118,181	109,282	-7.5
Total Assets	Rs m	188,669	190,900	1.2

PETRONET LNG Cash Flow Statement Analysis

• PETRONET LNG's cash flow from operating activities (CFO) during FY21 stood at Rs 36 billion, an improvement of 24.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -9 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -28 billion, an improvement of 10% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 7 billion net cash flows seen during FY20.

PETRONET LNG 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	28,631	35,592	24.3%
Cash Flow from Investing Activities	Rs m	9,410	-9,273	-
Cash Flow from Financing Activities	Rs m	-30,547	-27,586	-
Net Cash Flow	Rs m	7,494	-1,267	-

Current Valuations for PETRONET LNG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.5, an improvement from the EPS of Rs 17.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 224.9, stands at 11.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 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	236.3	173.5
TTM Earnings per share	Rs	17.9	19.5
Diluted earnings per share	Rs	17.9	19.5
Price to Cash Flow	x	8.7	9.6
TTM P/E ratio	x	11.1	11.6
Price / Book Value ratio	x	3.2	3.0
Market Cap	Rs m	354,563	354,900
Dividends per share (Unadj.)	Rs	12.5	11.5

Ratio Analysis for PETRONET LNG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY21, from 3.2x 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 12.7x during FY21, from 8.7x 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 24.7% during FY21, from 24.2% 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 36.1% during FY21, from 31.3% 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 17.1% during FY21, from 16.4% 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	3.2	3.9
Debtors’ Days	Days	165	263
Interest coverage	x	8.7	12.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.4	17.1
Return on equity	%	24.2	24.7
Return on capital employed	%	31.3	36.1

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 199.9 to Rs 224.9, registering a gain of Rs 25.1 or around 12.5%.

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 PETRONET LNG and quarterly results for PETRONET LNG)

Read: Latest Annual Report Analysis of PETRONET LNG