SUPREME PETR 2020-21 Annual Report Analysis

Wed, 31 Mar

SUPREME PETR 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.

SUPREME PETR Income Statement Analysis

• Operating income during the year rose 16.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 350.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY21 as against 5.5% in FY20.
• Depreciation charges increased by 8.6% and finance costs increased by 11.9% YoY, respectively.
• Other income grew by 78.4% YoY.
• Net profit for the year grew by 365.2% YoY.
• Net profit margins during the year grew from 3.8% in FY20 to 15.0% in FY21.

SUPREME PETR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	27,242	31,852	16.9%
Other income	Rs m	119	213	78.4%
Total Revenues	Rs m	27,362	32,065	17.2%
Gross profit	Rs m	1,485	6,689	350.5%
Depreciation	Rs m	360	391	8.6%
Interest	Rs m	65	73	11.9%
Profit before tax	Rs m	1,179	6,438	446.1%
Tax	Rs m	152	1,663	990.8%
Profit after tax	Rs m	1,027	4,775	365.2%
Gross profit margin	%	5.5	21.0
Effective tax rate	%	12.9	25.8
Net profit margin	%	3.8	15.0

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SUPREME PETR Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 19.3%.
• Current assets rose 57% and stood at Rs 14 billion, while fixed assets rose 1% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 18 billion as against Rs 13 billion during FY20, thereby witnessing a growth of 40%.

SUPREME PETR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,733	10,648	58.2
Current Liabilities	Rs m	5,209	6,216	19.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,551	17,553	39.9
Current assets	Rs m	8,673	13,651	57.4
Fixed Assets	Rs m	3,878	3,903	0.6
Total Assets	Rs m	12,551	17,553	39.9

SUPREME PETR Cash Flow Statement Analysis

• SUPREME PETR's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 265.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -639 million, an improvement of 817.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 216 million net cash flows seen during FY20.

SUPREME PETR 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	1,190	4,347	265.2%
Cash Flow from Investing Activities	Rs m	-70	-639	-
Cash Flow from Financing Activities	Rs m	-905	-1,044	-
Net Cash Flow	Rs m	216	2,664	1,135.0%

Current Valuations for SUPREME PETR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 50.8, an improvement from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 418.3, stands at 8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 5.2 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	282.5	338.8
TTM Earnings per share	Rs	10.6	50.8
Diluted earnings per share	Rs	10.9	50.8
Price to Cash Flow	x	8.8	5.2
TTM P/E ratio	x	11.9	8.2
Price / Book Value ratio	x	2.5	2.5
Market Cap	Rs m	16,734	26,756
Dividends per share (Unadj.)	Rs	5.5	15.0

Ratio Analysis for SUPREME PETR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY21, from 1.7x 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 89.6x during FY21, from 19.2x 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 44.8% during FY21, from 15.2% 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 61.1% during FY21, from 18.5% 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 27.6% during FY21, from 8.7% 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	1.7	2.2
Debtors’ Days	Days	332	439
Interest coverage	x	19.2	89.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	27.6
Return on equity	%	15.2	44.8
Return on capital employed	%	18.5	61.1

To see how SUPREME PETR has performed over the last 5 years, please visit here.

SUPREME PETR Share Price Performance

Over the last one year, SUPREME PETR share price has moved up from Rs 129.7 to Rs 418.3, registering a gain of Rs 288.6 or around 222.5%.

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 SUPREME PETR and quarterly results for SUPREME PETR)

Read: Latest Annual Report Analysis of SUPREME PETR