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PETRONET LNG 2020-21 Annual Report Analysis
Tue, 19 Oct

PETRONET LNG 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.

PETRONET LNG Income Statement Analysis

  • Operating income during the year fell 26.6% 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 down at 18.1% in FY21 as against 11.0% in FY20.
  • Depreciation charges increased by 1.0% and finance costs decreased by 16.7% YoY, respectively.
  • Other income declined by 1.2% YoY.
  • Net profit for the year grew by 8.6% YoY.
  • Net profit margins during the year grew from 7.5% in FY20 to 11.1% in FY21.

PETRONET LNG Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 354,520 260,229 -26.6%
Other income Rs m 3,636 3,591 -1.2%
Total Revenues Rs m 358,156 263,820 -26.3%
Gross profit Rs m 39,174 46,995 20.0%
Depreciation Rs m 7,761 7,841 1.0%
Interest Rs m 4,032 3,360 -16.7%
Profit before tax Rs m 31,017 39,386 27.0%
Tax Rs m 4,131 10,183 146.5%
Profit after tax Rs m 26,886 29,203 8.6%
Gross profit margin % 11.0 18.1
Effective tax rate % 13.3 25.9
Net profit margin % 7.5 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

PETRONET LNG Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 21 billion as compared to Rs 22 billion in FY20, thereby witnessing an decrease of -4.6%.
  • Long-term debt down at Rs 230 million as compared to Rs 644 million during FY20, a fall of 64.3%.
  • Current assets rose 16% and stood at Rs 82 billion, while fixed assets fell 8% and stood at Rs 109 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 191 billion as against Rs 189 billion during FY20, thereby witnessing a growth of 1%.

PETRONET LNG Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 111,209 118,069 6.2
 
Current Liabilities Rs m 21,741 20,744 -4.6
Long-term Debt Rs m 644 230 -64.3
Total Liabilities Rs m 188,669 190,900 1.2
 
Current assets Rs m 70,488 81,619 15.8
Fixed Assets Rs m 118,181 109,282 -7.5
Total Assets Rs m 188,669 190,900 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PETRONET LNG Cash Flow Statement Analysis

  • PETRONET LNG's cash flow from operating activities (CFO) during FY21 stood at Rs 36 billion, an improvement of 24.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -28 billion, an improvement of 10% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 7 billion net cash flows seen during FY20.

PETRONET LNG 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 28,631 35,592 24.3%
Cash Flow from Investing Activities Rs m 9,410 -9,273 -
Cash Flow from Financing Activities Rs m -30,547 -27,586 -
Net Cash Flow Rs m 7,494 -1,267 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PETRONET LNG

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.5, an improvement from the EPS of Rs 17.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 231.8, stands at 11.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.4 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 236.3 173.5
TTM Earnings per share Rs 17.9 19.5
Diluted earnings per share Rs 17.9 19.5
Price to Cash Flow x 10.0 9.4
TTM P/E ratio x 11.5 11.5
Price / Book Value ratio x 3.2 3.0
Market Cap Rs m 347,700 347,700
Dividends per share (Unadj.) Rs 12.5 11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PETRONET LNG

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.9x during FY21, from 3.2x 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 12.7x during FY21, from 8.7x 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 24.7% during FY21, from 24.2% 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 36.1% during FY21, from 31.3% 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 17.1% during FY21, from 16.4% 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 3.2 3.9
Debtors’ Days Days 165 263
Interest coverage x 8.7 12.7
Debt to equity ratio x 0.0 0.0
Return on assets % 16.4 17.1
Return on equity % 24.2 24.7
Return on capital employed % 31.3 36.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PETRONET LNG Share Price Performance

Over the last one year, PETRONET LNG share price has moved up from Rs 222.9 to Rs 231.8, registering a gain of Rs 8.9 or around 4.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,202.9 (down 1.0%). Over the last one year it has moved up from 12,122.5 to 19,202.9, a gain of 7,080 points (up 58.4%).

Overall, the S&P BSE SENSEX is up 52.0% over the year.

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