BPCL 2020-21 Annual Report Analysis

Wed, 31 Mar

BPCL 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.

BPCL Income Statement Analysis

• Operating income during the year fell 34.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 287.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.0% in FY21 as against 2.9% in FY20.
• Depreciation charges increased by 6.2% and finance costs decreased by 34.6% YoY, respectively.
• Other income grew by 6.9% YoY.
• Net profit for the year grew by 679.0% YoY.
• Net profit margins during the year grew from 0.9% in FY20 to 11.3% in FY21.

BPCL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,393,466	1,560,590	-34.8%
Other income	Rs m	21,148	22,604	6.9%
Total Revenues	Rs m	2,414,614	1,583,194	-34.4%
Gross profit	Rs m	68,532	265,547	287.5%
Depreciation	Rs m	40,801	43,342	6.2%
Interest	Rs m	26,370	17,234	-34.6%
Profit before tax	Rs m	22,509	227,576	911.0%
Tax	Rs m	-142	51,122	-36,076.0%
Profit after tax	Rs m	22,651	176,454	679.0%
Gross profit margin	%	2.9	17.0
Effective tax rate	%	-0.6	22.5
Net profit margin	%	0.9	11.3

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BPCL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 569 billion as compared to Rs 602 billion in FY20, thereby witnessing an decrease of -5.5%.
• Long-term debt down at Rs 357 billion as compared to Rs 380 billion during FY20, a fall of 6.1%.
• Current assets rose 20% and stood at Rs 520 billion, while fixed assets rose 1% and stood at Rs 1,090 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 1,610 billion as against Rs 1,509 billion during FY20, thereby witnessing a growth of 7%.

BPCL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	365,323	526,986	44.3
Current Liabilities	Rs m	602,215	569,304	-5.5
Long-term Debt	Rs m	380,439	357,402	-6.1
Total Liabilities	Rs m	1,508,600	1,609,885	6.7
Current assets	Rs m	432,518	519,825	20.2
Fixed Assets	Rs m	1,076,082	1,090,060	1.3
Total Assets	Rs m	1,508,600	1,609,885	6.7

BPCL Cash Flow Statement Analysis

• BPCL's cash flow from operating activities (CFO) during FY21 stood at Rs 236 billion, an improvement of 198.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -26 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -140 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 70 billion from the Rs 3 billion net cash flows seen during FY20.

BPCL 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	78,810	235,538	198.9%
Cash Flow from Investing Activities	Rs m	-111,351	-25,727	-
Cash Flow from Financing Activities	Rs m	35,832	-139,809	-
Net Cash Flow	Rs m	3,291	70,002	2,027.0%

Current Valuations for BPCL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 84.3, an improvement from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 428.0, stands at 5.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 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	1,216.9	745.7
TTM Earnings per share	Rs	11.5	84.3
Diluted earnings per share	Rs	10.4	81.3
Price to Cash Flow	x	10.8	3.7
TTM P/E ratio	x	30.3	5.3
Price / Book Value ratio	x	2.2	1.5
Market Cap	Rs m	788,424	805,196
Dividends per share (Unadj.)	Rs	16.5	79.0

Ratio Analysis for BPCL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.7x 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 14.2x during FY21, from 1.9x 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 33.5% during FY21, from 6.2% 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 27.7% during FY21, from 6.6% 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 12.0% during FY21, from 3.2% 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	0.7	0.9
Debtors’ Days	Days	1	2
Interest coverage	x	1.9	14.2
Debt to equity ratio	x	1.0	0.7
Return on assets	%	3.2	12.0
Return on equity	%	6.2	33.5
Return on capital employed	%	6.6	27.7

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 up from Rs 316.1 to Rs 428.0, registering a gain of Rs 111.9 or around 35.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,820.5 (down 0.1%). Over the last one year it has moved up from 10,020.9 to 14,820.5, a gain of 4,800 points (up 47.9%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of BPCL