PETRONET LNG 2021-22 Annual Report Analysis

Tue, 13 Sep

PETRONET LNG has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PETRONET LNG Income Statement Analysis

• Operating income during the year rose 65.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.2% in FY22 as against 18.1% in FY21.
• Depreciation charges decreased by 2.0% and finance costs decreased by 5.5% YoY, respectively.
• Other income declined by 17.1% YoY.
• Net profit for the year grew by 14.4% YoY.
• Net profit margins during the year declined from 11.2% in FY21 to 7.7% in FY22.

PETRONET LNG Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	260,229	431,686	65.9%
Other income	Rs m	3,591	2,977	-17.1%
Total Revenues	Rs m	263,820	434,663	64.8%
Gross profit	Rs m	46,995	52,487	11.7%
Depreciation	Rs m	7,841	7,685	-2.0%
Interest	Rs m	3,360	3,173	-5.5%
Profit before tax	Rs m	39,386	44,606	13.3%
Tax	Rs m	10,183	11,212	10.1%
Profit after tax	Rs m	29,203	33,395	14.4%
Gross profit margin	%	18.1	12.2
Effective tax rate	%	25.9	25.1
Net profit margin	%	11.2	7.7

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PETRONET LNG Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 27 billion as compared to Rs 21 billion in FY21, thereby witnessing an increase of 31.9%.
• Current assets rose 7% and stood at Rs 87 billion, while fixed assets rose 16% and stood at Rs 126 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 214 billion as against Rs 191 billion during FY21, thereby witnessing a growth of 12%.

PETRONET LNG Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	118,069	136,681	15.8
Current Liabilities	Rs m	20,744	27,367	31.9
Long-term Debt	Rs m	230	0	-100.0
Total Liabilities	Rs m	190,900	213,618	11.9
Current assets	Rs m	81,619	87,153	6.8
Fixed Assets	Rs m	109,282	126,465	15.7
Total Assets	Rs m	190,900	213,618	11.9

PETRONET LNG Cash Flow Statement Analysis

• PETRONET LNG's cash flow from operating activities (CFO) during FY22 stood at Rs 35 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -11 billion, an improvement of 13.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -22 billion, an improvement of 20% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 billion from the Rs -1 billion net cash flows seen during FY21.

PETRONET LNG Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	35,592	34,688	-2.5%
Cash Flow from Investing Activities	Rs m	-9,273	-10,533	-
Cash Flow from Financing Activities	Rs m	-27,586	-22,109	-
Net Cash Flow	Rs m	-1,267	2,046	-

Current Valuations for PETRONET LNG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an improvement from the EPS of Rs 19.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 217.8, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	173.5	287.8
TTM Earnings per share	Rs	19.5	22.3
Diluted earnings per share	Rs	19.5	22.3
Price to Cash Flow	x	9.1	8.1
TTM P/E ratio	x	11.6	9.6
Price / Book Value ratio	x	3.0	2.4
Market Cap	Rs m	354,900	331,800
Dividends per share (Unadj.)	Rs	11.5	11.5

Ratio Analysis for PETRONET LNG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.2x during FY22, from 3.9x during FY21. 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 15.1x during FY22, from 12.7x during FY21. 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 24.4% during FY22, from 24.7% during FY22. 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 35.0% during FY22, from 36.1% during FY21. 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 FY22, from 17.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.9	3.2
Debtors’ Days	Days	263	227
Interest coverage	x	12.7	15.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.1	17.1
Return on equity	%	24.7	24.4
Return on capital employed	%	36.1	35.0

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 down from Rs 230.0 to Rs 217.8, registering a loss of Rs 12.2 or around 5.3%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 20,095.7 (down 0.3%). Over the last one year it has moved up from 17,434.3 to 20,095.7, a gain of 2,661 points (up 15.3%).

Overall, the S&P BSE SENSEX is up 3.9% 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