SAVITA OIL 2017-18 Annual Report Analysis

Sat, 31 Mar

SAVITA OIL has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

SAVITA OIL Income Statement Analysis

• Operating income during the year rose 32.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY18 as against 11.8% in FY17.
• Depreciation charges decreased by 8.5% and finance costs increased by 0.3% YoY, respectively.
• Other income declined by 26.8% YoY.
• Net profit for the year grew by 34.8% YoY.
• Net profit margins during the year grew from 7.1% in FY17 to 7.2% in FY18.

SAVITA OIL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	13,111	17,408	32.8%
Other income	Rs m	130	96	-26.8%
Total Revenues	Rs m	13,241	17,503	32.2%
Gross profit	Rs m	1,551	1,862	20.0%
Depreciation	Rs m	283	259	-8.5%
Interest	Rs m	137	138	0.3%
Profit before tax	Rs m	1,262	1,561	23.7%
Tax	Rs m	325	299	-8.2%
Profit after tax	Rs m	936	1,262	34.8%
Gross profit margin	%	11.8	10.7
Effective tax rate	%	25.8	19.1
Net profit margin	%	7.1	7.2

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SAVITA OIL Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 14.3%.
• Long-term debt down at Rs 22 million as compared to Rs 55 million during FY17, a fall of 60.6%.
• Current assets rose 17% and stood at Rs 11 billion, while fixed assets fell 6% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 11 billion during FY17, thereby witnessing a growth of 12%.

SAVITA OIL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	6,612	7,423	12.3
Current Liabilities	Rs m	4,591	5,250	14.3
Long-term Debt	Rs m	55	22	-60.6
Total Liabilities	Rs m	11,441	12,844	12.3
Current assets	Rs m	9,047	10,600	17.2
Fixed Assets	Rs m	2,394	2,244	-6.3
Total Assets	Rs m	11,441	12,844	12.3

SAVITA OIL Cash Flow Statement Analysis

• SAVITA OIL's cash flow from operating activities (CFO) during FY18 stood at Rs 967 million, an improvement of 77.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -94 million, an improvement of 200.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -745 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 128 million from the Rs -40 million net cash flows seen during FY17.

SAVITA OIL Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	547	967	77.0%
Cash Flow from Investing Activities	Rs m	-31	-94	-
Cash Flow from Financing Activities	Rs m	-555	-745	-
Net Cash Flow	Rs m	-40	128	-

Current Valuations for SAVITA OIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 88.1, an improvement from the EPS of Rs 64.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,408.6, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	898.0	1,215.6
TTM Earnings per share	Rs	64.1	88.1
Diluted earnings per share	Rs	67.7	91.3
Price to Cash Flow	x	10.7	12.2
TTM P/E ratio	x	13.9	15.4
Price / Book Value ratio	x	1.6	2.5
Market Cap	Rs m	10,396	18,619
Dividends per share (Unadj.)	Rs	13.5	2.5

Ratio Analysis for SAVITA OIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 2.0x during FY17. 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 12.3x during FY18, from 10.2x during FY17. 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 17.0% during FY18, from 14.2% during FY18. 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 22.8% during FY18, from 21.0% during FY17. 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 10.9% during FY18, from 9.4% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	2.0	2.0
Debtors’ Days	Days	1,177	1,130
Interest coverage	x	10.2	12.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.4	10.9
Return on equity	%	14.2	17.0
Return on capital employed	%	21.0	22.8

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 940.1 to Rs 1,408.6, registering a gain of Rs 468.5 or around 49.8%.

Overall, the S&P BSE SENSEX is up 12.1% 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