BPCL 2023-24 Annual Report Analysis

Mon, 12 Aug

BPCL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BPCL Income Statement Analysis

• Operating income during the year fell 5.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 275.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY24 as against 2.9% in FY23.
• Depreciation charges increased by 6.3% and finance costs decreased by 2.7% YoY, respectively.
• Other income grew by 49.1% YoY.
• Net profit for the year grew by 1160.4% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 6.9% in FY24.

BPCL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,128,271	3,891,735	-5.7%
Other income	Rs m	14,990	22,353	49.1%
Total Revenues	Rs m	4,143,261	3,914,087	-5.5%
Gross profit	Rs m	119,537	448,793	275.4%
Depreciation	Rs m	63,688	67,713	6.3%
Interest	Rs m	42,628	41,489	-2.7%
Profit before tax	Rs m	28,211	361,944	1,183.0%
Tax	Rs m	6,901	93,356	1,252.8%
Profit after tax	Rs m	21,311	268,588	1,160.4%
Gross profit margin	%	2.9	11.5
Effective tax rate	%	24.5	25.8
Net profit margin	%	0.5	6.9

Don't Miss: Key Information for Long-term Investors

BPCL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 809 billion as compared to Rs 749 billion in FY23, thereby witnessing an increase of 8.0%.
• Long-term debt down at Rs 269 billion as compared to Rs 414 billion during FY23, a fall of 35.0%.
• Current assets rose 17% and stood at Rs 657 billion, while fixed assets rose 4% and stood at Rs 1,367 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2,024 billion as against Rs 1,881 billion during FY23, thereby witnessing a growth of 8%.

BPCL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	535,224	756,351	41.3
Current Liabilities	Rs m	748,711	808,834	8.0
Long-term Debt	Rs m	413,694	268,771	-35.0
Total Liabilities	Rs m	1,881,382	2,024,178	7.6
Current assets	Rs m	560,256	656,517	17.2
Fixed Assets	Rs m	1,320,958	1,367,236	3.5
Total Assets	Rs m	1,881,382	2,024,178	7.6

BPCL Cash Flow Statement Analysis

• BPCL's cash flow from operating activities (CFO) during FY24 stood at Rs 359 billion, an improvement of 188.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -105 billion, an improvement of 34.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -254 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -120 million from the Rs 3 billion net cash flows seen during FY23.

BPCL Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	124,656	359,359	188.3%
Cash Flow from Investing Activities	Rs m	-78,064	-105,206	-
Cash Flow from Financing Activities	Rs m	-44,020	-254,273	-
Net Cash Flow	Rs m	2,572	-120	-

Current Valuations for BPCL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 126.1, an improvement from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 331.1, stands at 7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 1.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	1,938.6	1,827.6
TTM Earnings per share	Rs	10.0	126.1
Diluted earnings per share	Rs	4.9	61.9
Price to Cash Flow	x	8.8	1.6
TTM P/E ratio	x	-1,226.1	7.9
Price / Book Value ratio	x	1.4	0.7
Market Cap	Rs m	731,255	540,190
Dividends per share (Unadj.)	Rs	4.0	31.5

Ratio Analysis for BPCL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.7x during FY23. 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 9.7x during FY24, from 1.7x during FY23. 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 35.5% during FY24, from 4.0% during FY24. 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 39.4% during FY24, from 7.5% during FY23. 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 FY24, from 3.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.7	0.8
Debtors’ Days	Days	1	1
Interest coverage	x	1.7	9.7
Debt to equity ratio	x	0.8	0.4
Return on assets	%	3.4	15.3
Return on equity	%	4.0	35.5
Return on capital employed	%	7.5	39.4

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 178.8 to Rs 331.1, registering a gain of Rs 152.3 or around 85.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,629.7 (down 0.5%). Over the last one year it has moved up from 19,059.8 to 31,629.7, a gain of 12,570 points (up 65.9%).

Overall, the S&P BSE SENSEX is up 20.7% over the year.

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