PETRONET LNG 2018-19 Annual Report Analysis
Fri, 18 Oct

PETRONET LNG has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

PETRONET LNG Income Statement Analysis

  • Operating income during the year rose 25.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 0.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY19 as against 10.9% in FY18.
  • Depreciation charges decreased by 0.1% and finance costs decreased by 39.3% YoY, respectively.
  • Other income grew by 40.5% YoY.
  • Net profit for the year grew by 5.7% YoY.
  • Net profit margins during the year declined from 6.8% in FY18 to 5.7% in FY19.

PETRONET LNG Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 305,986 383,954 25.5%
Other income Rs m 3,174 4,458 40.5%
Total Revenues Rs m 309,160 388,412 25.6%
Gross profit Rs m 33,449 33,731 0.8%
Depreciation Rs m 4,117 4,112 -0.1%
Interest Rs m 1,630 989 -39.3%
Profit before tax Rs m 30,877 33,087 7.2%
Tax Rs m 9,773 10,782 10.3%
Profit after tax Rs m 21,104 22,306 5.7%
Gross profit margin % 10.9 8.8
Effective tax rate % 31.7 32.6
Net profit margin % 6.8 5.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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PETRONET LNG Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 25 billion as compared to Rs 29 billion in FY18, thereby witnessing an decrease of -13.1%.
  • Long-term debt down at Rs 1 billion as compared to Rs 7 billion during FY18, a fall of 86.2%.
  • Current assets fell 15% and stood at Rs 60 billion, while fixed assets fell 2% and stood at Rs 83 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 152 billion as against Rs 157 billion during FY18, thereby witnessing a fall of 3%.

PETRONET LNG Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 98,113 102,306 4.3
 
Current Liabilities Rs m 28,602 24,844 -13.1
Long-term Debt Rs m 7,334 1,012 -86.2
Total Liabilities Rs m 157,445 152,493 -3.1
 
Current assets Rs m 70,178 59,618 -15.0
Fixed Assets Rs m 85,051 83,422 -1.9
Total Assets Rs m 157,445 152,493 -3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PETRONET LNG Cash Flow Statement Analysis

  • PETRONET LNG's cash flow from operating activities (CFO) during FY19 stood at Rs 21 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -715 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -25 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -5 billion from the Rs 4 billion net cash flows seen during FY18.

PETRONET LNG Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 29,956 21,414 -28.5%
Cash Flow from Investing Activities Rs m -12,776 -715 -
Cash Flow from Financing Activities Rs m -13,347 -25,476 -
Net Cash Flow Rs m 3,833 -4,777 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for PETRONET LNG

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.9, an improvement from the EPS of Rs 14.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 266.4, stands at 18.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 204.0 256.0
TTM Earnings per share Rs 14.1 14.9
Diluted earnings per share Rs 14.1 14.9
Price to Cash Flow x 15.8 15.1
TTM P/E ratio x 18.8 18.8
Price / Book Value ratio x 5.0 3.3
Market Cap Rs m 399,525 399,525
Dividends per share (Unadj.) Rs 4.5 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PETRONET LNG

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY19, from 2.5x during FY18. 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 34.4x during FY19, from 19.9x during FY18. 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 21.8% during FY19, from 21.5% during FY19. 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 33.0% during FY19, from 30.8% during FY18. 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 15.3% during FY19, from 14.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.5 2.4
Debtors’ Days Days 19 13
Interest coverage x 19.9 34.4
Debt to equity ratio x 0.1 0.0
Return on assets % 14.4 15.3
Return on equity % 21.5 21.8
Return on capital employed % 30.8 33.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 217.4 to Rs 266.4, registering a gain of Rs 49.0 or around 22.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,291.7 (up 0.8%). Over the last one year it has moved up from 13,248.0 to 15,291.7, a gain of 2,044 points (up 15.4%).

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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