BPCL 2017-18 Annual Report Analysis
Sat, 31 Mar

BPCL 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.

BPCL Income Statement Analysis

  • Operating income during the year rose 21.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.9% in FY18 as against 8.6% in FY17.
  • Depreciation charges increased by 36.9% and finance costs increased by 70.3% YoY, respectively.
  • Other income declined by 4.8% YoY.
  • Net profit for the year declined by 0.7% YoY.
  • Net profit margins during the year declined from 5.4% in FY17 to 4.4% in FY18.

BPCL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 1,587,539 1,923,522 21.2%
Other income Rs m 19,093 18,186 -4.8%
Total Revenues Rs m 1,606,631 1,941,708 20.9%
Gross profit Rs m 136,509 151,368 10.9%
Depreciation Rs m 21,076 28,850 36.9%
Interest Rs m 6,964 11,857 70.3%
Profit before tax Rs m 127,562 128,846 1.0%
Tax Rs m 41,926 43,816 4.5%
Profit after tax Rs m 85,636 85,030 -0.7%
Gross profit margin % 8.6 7.9
Effective tax rate % 32.9 34.0
Net profit margin % 5.4 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BPCL Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 458 billion as compared to Rs 473 billion in FY17, thereby witnessing an decrease of -3.1%.
  • Long-term debt stood at Rs 289 billion as compared to Rs 233 billion during FY17, a growth of 24.3%.
  • Current assets rose 7% and stood at Rs 406 billion, while fixed assets rose 12% and stood at Rs 798 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,204 billion as against Rs 1,091 billion during FY17, thereby witnessing a growth of 10%.

BPCL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 308,198 366,186 18.8
 
Current Liabilities Rs m 473,001 458,102 -3.1
Long-term Debt Rs m 232,553 289,043 24.3
Total Liabilities Rs m 1,090,863 1,203,561 10.3
 
Current assets Rs m 378,993 406,015 7.1
Fixed Assets Rs m 711,870 797,546 12.0
Total Assets Rs m 1,090,863 1,203,561 10.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BPCL Cash Flow Statement Analysis

  • BPCL's cash flow from operating activities (CFO) during FY18 stood at Rs 111 billion, an improvement of 22.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -71 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -42 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs -14 billion net cash flows seen during FY17.

BPCL 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 90,411 110,684 22.4%
Cash Flow from Investing Activities Rs m -152,739 -70,655 -
Cash Flow from Financing Activities Rs m 48,040 -42,177 -
Net Cash Flow Rs m -14,289 -2,149 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BPCL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.2, an decline from the EPS of Rs 65.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 428.0, stands at 11.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.1 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 1,210.7 978.0
TTM Earnings per share Rs 65.3 43.2
Diluted earnings per share Rs 39.5 39.2
Price to Cash Flow x 13.2 10.1
TTM P/E ratio x 17.5 11.7
Price / Book Value ratio x 2.5 3.1
Market Cap Rs m 770,034 1,153,182
Dividends per share (Unadj.) Rs 32.5 21.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BPCL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.8x 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 deteriorated and stood at 11.9x during FY18, from 19.3x 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 declined and down at 23.2% during FY18, from 27.8% 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 declined and down at 21.5% during FY18, from 24.9% 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 declined and down at 8.1% during FY18, from 8.5% 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 0.8 0.9
Debtors’ Days Days 1 1
Interest coverage x 19.3 11.9
Debt to equity ratio x 0.8 0.8
Return on assets % 8.5 8.1
Return on equity % 27.8 23.2
Return on capital employed % 24.9 21.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

BPCL Share Price Performance

Over the last one year, BPCL share price has moved down from Rs 649.0 to Rs 428.0, registering a loss of Rs 221.0 or around 34.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,614.4 (up 0.1%). Over the last one year it has moved up from 13,563.6 to 14,614.4, a gain of 1,051 points (up 7.7%).

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

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

Annual Report FAQs

What is the current share price of BPCL?

BPCL currently trades at Rs 304.9 per share. You can check out the latest share price performance of BPCL here...

What was the revenue of BPCL in FY18? How does it compare to earlier years?

The revenues of BPCL stood at Rs 1,941,708 m in FY18, which was up 20.9% compared to Rs 1,606,631 m reported in FY17.

BPCL's revenue has fallen from Rs 2,314,264 m in FY13 to Rs 1,941,708 m in FY18.

Over the past 6 years, the revenue of BPCL has grown at a CAGR of -3.4%.

What was the net profit of BPCL in FY18? How does it compare to earlier years?

The net profit of BPCL stood at Rs 85,030 m in FY18, which was down -0.7% compared to Rs 85,636 m reported in FY17.

This compares to a net profit of Rs 77,379 m in FY16 and a net profit of Rs 40,609 m in FY14.

Over the past 6 years, BPCL net profit has grown at a CAGR of 26.3%.

What does the cash flow statement of BPCL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BPCL reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 110,684 m as compared to Rs 90,411 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -70,655 m as compared to Rs -152,739 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -42,177 m as compared to Rs 48,040 m in FY17.

Here's the cash flow statement of BPCL for the past 6 years.

(Rs m)FY13FY14FY16FY17FY18
From Operations54,80584,041111,19090,411110,684
From Investments-23,872-42,859-92,327-152,739-70,655
From Financial Activity-17,433-62,437-13,31648,040-42,177
Net Cashflow13,508-21,2425,548-14,289-2,149

What does the Key Ratio analysis of BPCL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BPCL reveals:

  • Operating profit margins witnessed a fall and stood at 7.9% in FY18 as against 8.6% in FY17.
  • Net profit margins declined from 5.4% in FY17 to 4.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.8 as compared to 0.8 in FY17.

Here's the ratio/financial analysis of BPCL for the past 6 years.

 FY13FY14FY16FY17FY18
Operating Profit Margin (%)2.63.38.38.67.9
Net Profit Margin (%)1.21.64.95.44.4
Debt to Equity Ratio (x)0.30.60.80.80.8