CASTROL INDIA 2021-22 Annual Report Analysis

Sat, 31 Dec

CASTROL INDIA has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CASTROL INDIA Income Statement Analysis

• Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.3% in CY22 as against 25.4% in CY21.
• Depreciation charges decreased by 1.6% and finance costs increased by 66.4% YoY, respectively.
• Other income grew by 38.4% YoY.
• Net profit for the year grew by 7.5% YoY.
• Net profit margins during the year declined from 18.1% in CY21 to 17.1% in CY22.

CASTROL INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	41,921	47,745	13.9%
Other income	Rs m	484	671	38.4%
Total Revenues	Rs m	42,405	48,415	14.2%
Gross profit	Rs m	10,660	11,111	4.2%
Depreciation	Rs m	827	814	-1.6%
Interest	Rs m	24	40	66.4%
Profit before tax	Rs m	10,293	10,928	6.2%
Tax	Rs m	2,712	2,776	2.4%
Profit after tax	Rs m	7,581	8,152	7.5%
Gross profit margin	%	25.4	23.3
Effective tax rate	%	26.3	25.4
Net profit margin	%	18.1	17.1

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CASTROL INDIA Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 11 billion as compared to Rs 10 billion in CY21, thereby witnessing an increase of 8.2%.
• Current assets fell 0% and stood at Rs 22 billion, while fixed assets rose 97% and stood at Rs 8 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 30 billion as against Rs 26 billion during CY21, thereby witnessing a growth of 14%.

CASTROL INDIA Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	16,038	18,245	13.8
Current Liabilities	Rs m	10,343	11,191	8.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,327	30,005	14.0
Current assets	Rs m	22,439	22,338	-0.5
Fixed Assets	Rs m	3,887	7,667	97.2
Total Assets	Rs m	26,327	30,005	14.0

CASTROL INDIA Cash Flow Statement Analysis

• CASTROL INDIA's cash flow from operating activities (CFO) during CY22 stood at Rs 9 billion, an improvement of 45.3% on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs 617 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs 4 billion from the Rs -105 million net cash flows seen during CY21.

CASTROL INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	6,302	9,159	45.3%
Cash Flow from Investing Activities	Rs m	-831	617	-
Cash Flow from Financing Activities	Rs m	-5,576	-6,075	-
Net Cash Flow	Rs m	-105	3,703	-

Current Valuations for CASTROL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 123.2, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 13.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	42.4	48.3
TTM Earnings per share	Rs	7.7	8.2
Diluted earnings per share	Rs	7.7	8.2
Price to Cash Flow	x	14.5	13.0
TTM P/E ratio	x	16.0	14.9
Price / Book Value ratio	x	8.4	6.4
Market Cap	Rs m	134,842	116,716
Dividends per share (Unadj.)	Rs	5.5	6.5

Ratio Analysis for CASTROL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during CY22, from 2.2x during CY21. 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 273.5x during CY22, from 428.1x during CY21. 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 44.7% during CY22, from 47.3% during CY22. 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 60.1% during CY22, from 64.3% during CY21. 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 27.3% during CY22, from 28.9% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	2.2	2.0
Debtors’ Days	Days	3	3
Interest coverage	x	428.1	273.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.9	27.3
Return on equity	%	47.3	44.7
Return on capital employed	%	64.3	60.1

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

CASTROL INDIA Share Price Performance

Over the last one year, CASTROL INDIA share price has moved down from Rs 125.5 to Rs 100.9, registering a loss of Rs 24.5 or around 19.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,741.2 (up 0.3%). Over the last one year it has moved up from 14,820.5 to 18,741.2, a gain of 3,921 points (up 26.5%).

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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

Read: Latest Annual Report Analysis of CASTROL INDIA