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GP PETROLEUMS 2022-23 Annual Report Analysis

Thu, 31 Aug

GP PETROLEUMS 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.

GP PETROLEUMS Income Statement Analysis

• Operating income during the year rose 10.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.6% in FY23 as against 4.2% in FY22.
• Depreciation charges increased by 24.5% and finance costs decreased by NA YoY, respectively.
• Other income grew by 424.0% YoY.
• Net profit for the year grew by 33.0% YoY.
• Net profit margins during the year grew from 2.6% in FY22 to 3.2% in FY23.

GP PETROLEUMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,175	7,904	10.2%
Other income	Rs m	2	10	424.0%
Total Revenues	Rs m	7,177	7,914	10.3%
Gross profit	Rs m	299	364	22.0%
Depreciation	Rs m	29	36	24.5%
Interest	Rs m	9	-7	NA
Profit before tax	Rs m	264	347	31.5%
Tax	Rs m	74	95	27.6%
Profit after tax	Rs m	189	252	33.0%
Gross profit margin	%	4.2	4.6
Effective tax rate	%	28.2	27.3
Net profit margin	%	2.6	3.2

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GP PETROLEUMS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 556 million as compared to Rs 661 million in FY22, thereby witnessing an decrease of -15.8%.
• Current assets rose 6% and stood at Rs 3 billion, while fixed assets rose 10% and stood at Rs 747 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 7%.

GP PETROLEUMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,514	2,762	9.9
Current Liabilities	Rs m	661	556	-15.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,236	3,453	6.7
Current assets	Rs m	2,556	2,706	5.8
Fixed Assets	Rs m	680	747	10.0
Total Assets	Rs m	3,236	3,453	6.7

GP PETROLEUMS Cash Flow Statement Analysis

• GP PETROLEUMS's cash flow from operating activities (CFO) during FY23 stood at Rs 114 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 55 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -170 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -144 million net cash flows seen during FY22.

GP PETROLEUMS 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	625	114	-81.8%
Cash Flow from Investing Activities	Rs m	150	55	-63.6%
Cash Flow from Financing Activities	Rs m	-919	-170	-
Net Cash Flow	Rs m	-144	-1	-

Current Valuations for GP PETROLEUMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.7, stands at 12.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	140.7	155.0
TTM Earnings per share	Rs	3.7	4.9
Diluted earnings per share	Rs	3.7	4.9
Price to Cash Flow	x	10.6	8.7
TTM P/E ratio	x	12.2	12.7
Price / Book Value ratio	x	1.1	0.9
Market Cap	Rs m	2,862	2,502
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GP PETROLEUMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.9x during FY23, from 3.9x 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 -45.8x during FY23, from 32.0x 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 improved and stood at 9.1% during FY23, from 7.5% 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 improved and stood at 12.3% during FY23, from 10.8% 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 7.1% during FY23, from 6.1% 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	3.9	4.9
Debtors’ Days	Days	557	628
Interest coverage	x	32.0	-45.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.1	7.1
Return on equity	%	7.5	9.1
Return on capital employed	%	10.8	12.3

To see how GP PETROLEUMS has performed over the last 5 years, please visit here.

GP PETROLEUMS Share Price Performance

Over the last one year, GP PETROLEUMS share price has moved down from Rs 62.0 to Rs 45.7, registering a loss of Rs 16.3 or around 26.3%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,693.3 (down 0.5%). Over the last one year it has moved down from 20,289.8 to 18,693.3, a loss of 1,597 points (down 7.9%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for GP PETROLEUMS and quarterly results for GP PETROLEUMS)