SAVITA OIL 2022-23 Annual Report Analysis

Fri, 31 Mar

SAVITA OIL 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.

SAVITA OIL Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY23 as against 12.2% in FY22.
• Depreciation charges decreased by 3.3% and finance costs increased by 83.5% YoY, respectively.
• Other income declined by 25.5% YoY.
• Net profit for the year declined by 13.4% YoY.
• Net profit margins during the year declined from 8.9% in FY22 to 6.2% in FY23.

SAVITA OIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	29,382	36,304	23.6%
Other income	Rs m	308	229	-25.5%
Total Revenues	Rs m	29,690	36,534	23.0%
Gross profit	Rs m	3,582	3,358	-6.2%
Depreciation	Rs m	213	206	-3.3%
Interest	Rs m	193	354	83.5%
Profit before tax	Rs m	3,484	3,028	-13.1%
Tax	Rs m	879	771	-12.4%
Profit after tax	Rs m	2,605	2,257	-13.4%
Gross profit margin	%	12.2	9.3
Effective tax rate	%	25.2	25.5
Net profit margin	%	8.9	6.2

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SAVITA OIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 11.8%.
• Current assets rose 14% and stood at Rs 20 billion, while fixed assets rose 11% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 23 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 14%.

SAVITA OIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,579	14,491	15.2
Current Liabilities	Rs m	7,202	8,049	11.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,892	22,637	13.8
Current assets	Rs m	17,111	19,547	14.2
Fixed Assets	Rs m	2,781	3,090	11.1
Total Assets	Rs m	19,892	22,637	13.8

SAVITA OIL Cash Flow Statement Analysis

• SAVITA OIL's cash flow from operating activities (CFO) during FY23 stood at Rs -642 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -687 million, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -91 million from the Rs -44 million net cash flows seen during FY22.

SAVITA OIL 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	3,692	-642	-
Cash Flow from Investing Activities	Rs m	-2,994	1,238	-
Cash Flow from Financing Activities	Rs m	-756	-687	-
Net Cash Flow	Rs m	-44	-91	-

Current Valuations for SAVITA OIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.7, an decline from the EPS of Rs 188.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 237.9, stands at 7.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	2,126.1	525.4
TTM Earnings per share	Rs	188.5	32.7
Diluted earnings per share	Rs	37.7	32.7
Price to Cash Flow	x	5.1	8.5
TTM P/E ratio	x	5.6	7.3
Price / Book Value ratio	x	0.3	1.4
Market Cap	Rs m	3,790	20,835
Dividends per share (Unadj.)	Rs	5.0	4.0

Ratio Analysis for SAVITA OIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 2.4x 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 9.5x during FY23, from 19.1x 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 15.6% during FY23, from 20.7% 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 23.3% during FY23, from 29.2% 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 11.5% during FY23, from 14.1% 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	2.4	2.4
Debtors’ Days	Days	733	754
Interest coverage	x	19.1	9.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.1	11.5
Return on equity	%	20.7	15.6
Return on capital employed	%	29.2	23.3

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 210.0 to Rs 237.9, registering a gain of Rs 27.8 or around 13.3%.

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

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