SAVITA OIL 2020-21 Annual Report Analysis

Wed, 31 Mar

SAVITA OIL 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.

SAVITA OIL Income Statement Analysis

• Operating income during the year fell 6.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 93.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY21 as against 7.6% in FY20.
• Depreciation charges decreased by 9.2% and finance costs decreased by 55.3% YoY, respectively.
• Other income grew by 174.0% YoY.
• Net profit for the year grew by 134.2% YoY.
• Net profit margins during the year grew from 4.7% in FY20 to 11.7% in FY21.

SAVITA OIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	20,462	19,123	-6.5%
Other income	Rs m	116	318	174.0%
Total Revenues	Rs m	20,578	19,441	-5.5%
Gross profit	Rs m	1,554	3,004	93.4%
Depreciation	Rs m	222	202	-9.2%
Interest	Rs m	200	89	-55.3%
Profit before tax	Rs m	1,247	3,031	143.0%
Tax	Rs m	291	791	171.9%
Profit after tax	Rs m	956	2,240	134.2%
Gross profit margin	%	7.6	15.7
Effective tax rate	%	23.3	26.1
Net profit margin	%	4.7	11.7

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SAVITA OIL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 14.2%.
• Long-term debt down at Rs 1 million as compared to Rs 4 million during FY20, a fall of 75.4%.
• Current assets rose 23% and stood at Rs 15 billion, while fixed assets rose 8% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 21%.

SAVITA OIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,686	10,919	25.7
Current Liabilities	Rs m	5,535	6,319	14.2
Long-term Debt	Rs m	4	1	-75.4
Total Liabilities	Rs m	14,313	17,334	21.1
Current assets	Rs m	12,185	15,034	23.4
Fixed Assets	Rs m	2,128	2,299	8.0
Total Assets	Rs m	14,313	17,334	21.1

SAVITA OIL Cash Flow Statement Analysis

• SAVITA OIL's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -835 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -195 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 205 million from the Rs -413 million net cash flows seen during FY20.

SAVITA OIL 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	1,770	1,238	-30.0%
Cash Flow from Investing Activities	Rs m	-1,161	-835	-
Cash Flow from Financing Activities	Rs m	-1,025	-195	-
Net Cash Flow	Rs m	-413	205	-

Current Valuations for SAVITA OIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 159.2, an improvement from the EPS of Rs 68.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 977.4, stands at 5.9 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 0.7 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	1,454.3	1,359.1
TTM Earnings per share	Rs	68.0	159.2
Diluted earnings per share	Rs	69.2	162.1
Price to Cash Flow	x	7.5	5.2
TTM P/E ratio	x	9.3	5.9
Price / Book Value ratio	x	1.6	1.2
Market Cap	Rs m	14,156	12,599
Dividends per share (Unadj.)	Rs	20.0	15.0

Ratio Analysis for SAVITA OIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY21, from 2.2x 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 35.0x during FY21, from 7.2x 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 20.5% during FY21, from 11.0% 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 28.6% during FY21, from 16.7% 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 13.4% during FY21, from 8.1% 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	2.2	2.4
Debtors’ Days	Days	909	1,040
Interest coverage	x	7.2	35.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	13.4
Return on equity	%	11.0	20.5
Return on capital employed	%	16.7	28.6

To see how SAVITA OIL has performed over the last 5 years, please visit here.

SAVITA OIL Share Price Performance

Over the last one year, SAVITA OIL share price has moved up from Rs 643.9 to Rs 977.4, registering a gain of Rs 333.5 or around 51.8%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for SAVITA OIL and quarterly results for SAVITA OIL)

Read: Latest Annual Report Analysis of SAVITA OIL