TAMILNADU PETROPRODUCTS 2022-23 Annual Report Analysis

Fri, 31 Mar

TAMILNADU PETROPRODUCTS 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.

TAMILNADU PETROPRODUCTS Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY23 as against 13.7% in FY22.
• Depreciation charges decreased by 9.9% and finance costs increased by 17.4% YoY, respectively.
• Other income grew by 37.7% YoY.
• Net profit for the year declined by 46.3% YoY.
• Net profit margins during the year declined from 9.7% in FY22 to 4.4% in FY23.

TAMILNADU PETROPRODUCTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,056	21,503	19.1%
Other income	Rs m	181	249	37.7%
Total Revenues	Rs m	18,236	21,751	19.3%
Gross profit	Rs m	2,478	1,275	-48.5%
Depreciation	Rs m	236	213	-9.9%
Interest	Rs m	58	68	17.4%
Profit before tax	Rs m	2,364	1,242	-47.4%
Tax	Rs m	611	301	-50.8%
Profit after tax	Rs m	1,754	942	-46.3%
Gross profit margin	%	13.7	5.9
Effective tax rate	%	25.8	24.2
Net profit margin	%	9.7	4.4

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TAMILNADU PETROPRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 29.5%.
• Current assets rose 10% and stood at Rs 7 billion, while fixed assets rose 19% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 13%.

TAMILNADU PETROPRODUCTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,482	8,254	10.3
Current Liabilities	Rs m	1,545	2,001	29.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,809	11,068	12.8
Current assets	Rs m	6,594	7,249	9.9
Fixed Assets	Rs m	3,206	3,811	18.9
Total Assets	Rs m	9,809	11,068	12.8

TAMILNADU PETROPRODUCTS Cash Flow Statement Analysis

• TAMILNADU PETROPRODUCTS's cash flow from operating activities (CFO) during FY23 stood at Rs 874 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -670 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -123 million, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 80 million from the Rs -63 million net cash flows seen during FY22.

TAMILNADU PETROPRODUCTS 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	1,117	874	-21.8%
Cash Flow from Investing Activities	Rs m	-956	-670	-
Cash Flow from Financing Activities	Rs m	-224	-123	-
Net Cash Flow	Rs m	-63	80	-

Current Valuations for TAMILNADU PETROPRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.5, an decline from the EPS of Rs 19.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 71.1, stands at 6.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	200.7	239.0
TTM Earnings per share	Rs	19.5	10.5
Diluted earnings per share	Rs	19.5	10.5
Price to Cash Flow	x	5.2	7.9
TTM P/E ratio	x	5.9	6.8
Price / Book Value ratio	x	1.2	1.1
Market Cap	Rs m	8,914	9,120
Dividends per share (Unadj.)	Rs	3.0	1.5

Ratio Analysis for TAMILNADU PETROPRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY23, from 4.3x 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 19.2x during FY23, from 41.7x 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 11.4% during FY23, from 23.4% 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 15.9% during FY23, from 32.4% 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 9.1% during FY23, from 18.5% 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	4.3	3.6
Debtors’ Days	Days	227	236
Interest coverage	x	41.7	19.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.5	9.1
Return on equity	%	23.4	11.4
Return on capital employed	%	32.4	15.9

To see how TAMILNADU PETROPRODUCTS has performed over the last 5 years, please visit here.

TAMILNADU PETROPRODUCTS Share Price Performance

Over the last one year, TAMILNADU PETROPRODUCTS share price has moved down from Rs 114.3 to Rs 71.1, registering a loss of Rs 43.2 or around 37.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 17,383.4 (up 1.3%). Over the last one year it has moved down from 18,741.2 to 17,383.4, a loss of 1,358 points (down 7.2%).

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

(To know more, check out historical annual results for TAMILNADU PETROPRODUCTS and quarterly results for TAMILNADU PETROPRODUCTS)