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SOUTHERN PETRO 2022-23 Annual Report Analysis

Mon, 26 Feb

SOUTHERN PETRO 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.

SOUTHERN PETRO Income Statement Analysis

• Operating income during the year rose 50.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 74.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY23 as against 11.5% in FY22.
• Depreciation charges decreased by 1.5% and finance costs increased by 117.9% YoY, respectively.
• Other income grew by 24.1% YoY.
• Net profit for the year grew by 84.1% YoY.
• Net profit margins during the year grew from 8.7% in FY22 to 10.6% in FY23.

SOUTHERN PETRO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,749	28,288	50.9%
Other income	Rs m	166	206	24.1%
Total Revenues	Rs m	18,915	28,494	50.6%
Gross profit	Rs m	2,157	3,753	74.0%
Depreciation	Rs m	444	437	-1.5%
Interest	Rs m	142	309	117.9%
Profit before tax	Rs m	1,737	3,212	84.9%
Tax	Rs m	103	205	98.4%
Profit after tax	Rs m	1,633	3,007	84.1%
Gross profit margin	%	11.5	13.3
Effective tax rate	%	6.0	6.4
Net profit margin	%	8.7	10.6

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SOUTHERN PETRO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 20.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 374 million during FY22, a growth of 171.0%.
• Current assets rose 73% and stood at Rs 12 billion, while fixed assets rose 8% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 16 billion during FY22, thereby witnessing a growth of 35%.

SOUTHERN PETRO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,939	9,858	42.1
Current Liabilities	Rs m	9,269	11,133	20.1
Long-term Debt	Rs m	374	1,014	171.0
Total Liabilities	Rs m	15,894	21,497	35.3
Current assets	Rs m	6,646	11,521	73.4
Fixed Assets	Rs m	9,248	9,976	7.9
Total Assets	Rs m	15,894	21,497	35.3

SOUTHERN PETRO Cash Flow Statement Analysis

• SOUTHERN PETRO's cash flow from operating activities (CFO) during FY23 stood at Rs -307 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -163 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 584 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 114 million from the Rs -729 million net cash flows seen during FY22.

SOUTHERN PETRO 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	-1,060	-307	-
Cash Flow from Investing Activities	Rs m	-1,560	-163	-
Cash Flow from Financing Activities	Rs m	1,891	584	-69.1%
Net Cash Flow	Rs m	-729	114	-

Current Valuations for SOUTHERN PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.8, an improvement from the EPS of Rs 8.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 56.6, stands at 4.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	92.1	138.9
TTM Earnings per share	Rs	8.0	14.8
Diluted earnings per share	Rs	8.0	14.8
Price to Cash Flow	x	7.0	4.0
TTM P/E ratio	x	11.8	4.1
Price / Book Value ratio	x	1.5	1.4
Market Cap	Rs m	10,666	13,629
Dividends per share (Unadj.)	Rs	0.5	1.5

Ratio Analysis for SOUTHERN PETRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 0.7x 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 11.4x during FY23, from 13.2x 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 30.5% during FY23, from 23.5% 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 32.4% during FY23, from 25.7% 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 improved and stood at 15.4% during FY23, from 11.2% 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	0.7	1.0
Debtors’ Days	Days	1	13
Interest coverage	x	13.2	11.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.2	15.4
Return on equity	%	23.5	30.5
Return on capital employed	%	25.7	32.4

To see how SOUTHERN PETRO has performed over the last 5 years, please visit here.

SOUTHERN PETRO Share Price Performance

Over the last one year, SOUTHERN PETRO share price has moved down from Rs 71.6 to Rs 56.6, registering a loss of Rs 15.0 or around 21.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for SOUTHERN PETRO and quarterly results for SOUTHERN PETRO)