PETRONET LNG 2022-23 Annual Report Analysis

Fri, 31 Mar

PETRONET LNG 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.

PETRONET LNG Income Statement Analysis

• Operating income during the year rose 38.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY23 as against 12.4% in FY22.
• Depreciation charges decreased by 0.5% and finance costs increased by 4.2% YoY, respectively.
• Other income grew by 75.7% YoY.
• Net profit for the year declined by 3.3% YoY.
• Net profit margins during the year declined from 8.0% in FY22 to 5.6% in FY23.

PETRONET LNG Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	431,686	598,994	38.8%
Other income	Rs m	2,977	5,231	75.7%
Total Revenues	Rs m	434,663	604,224	39.0%
Gross profit	Rs m	53,473	49,920	-6.6%
Depreciation	Rs m	7,685	7,643	-0.5%
Interest	Rs m	3,173	3,305	4.2%
Profit before tax	Rs m	45,593	44,202	-3.1%
Tax	Rs m	11,212	10,944	-2.4%
Profit after tax	Rs m	34,381	33,258	-3.3%
Gross profit margin	%	12.4	8.3
Effective tax rate	%	24.6	24.8
Net profit margin	%	8.0	5.6

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PETRONET LNG Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 29 billion as compared to Rs 27 billion in FY22, thereby witnessing an increase of 6.0%.
• Current assets rose 36% and stood at Rs 118 billion, while fixed assets fell 14% and stood at Rs 109 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 228 billion as against Rs 214 billion during FY22, thereby witnessing a growth of 7%.

PETRONET LNG Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	136,681	152,646	11.7
Current Liabilities	Rs m	27,367	29,004	6.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	213,618	227,525	6.5
Current assets	Rs m	87,154	118,470	35.9
Fixed Assets	Rs m	126,464	109,055	-13.8
Total Assets	Rs m	213,618	227,525	6.5

PETRONET LNG Cash Flow Statement Analysis

• PETRONET LNG's cash flow from operating activities (CFO) during FY23 stood at Rs 26 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 12.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -24 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -10 billion from the Rs 2 billion net cash flows seen during FY22.

PETRONET LNG 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	34,786	25,690	-26.1%
Cash Flow from Investing Activities	Rs m	-10,631	-11,922	-
Cash Flow from Financing Activities	Rs m	-22,109	-23,681	-
Net Cash Flow	Rs m	2,046	-9,913	-

Current Valuations for PETRONET LNG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, an decline from the EPS of Rs 22.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 228.8, stands at 10.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	287.8	399.3
TTM Earnings per share	Rs	22.9	22.2
Diluted earnings per share	Rs	22.9	22.2
Price to Cash Flow	x	6.9	7.9
TTM P/E ratio	x	8.7	10.8
Price / Book Value ratio	x	2.4	2.1
Market Cap	Rs m	331,800	325,088
Dividends per share (Unadj.)	Rs	11.5	10.0

Ratio Analysis for PETRONET LNG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY23, from 3.2x 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 14.4x during FY23, from 15.4x 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 21.8% during FY23, from 25.2% 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 31.1% during FY23, from 35.7% 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 declined and down at 16.1% during FY23, from 17.6% 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	3.2	4.1
Debtors’ Days	Days	2	2
Interest coverage	x	15.4	14.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.6	16.1
Return on equity	%	25.2	21.8
Return on capital employed	%	35.7	31.1

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 193.7 to Rs 228.8, registering a gain of Rs 35.2 or around 18.2%.

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 PETRONET LNG and quarterly results for PETRONET LNG)