CONFIDENCE PETROLEUM 2023-24 Annual Report Analysis

Wed, 16 Oct

CONFIDENCE PETROLEUM 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.

CONFIDENCE PETROLEUM Income Statement Analysis

• Operating income during the year rose 22.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY24 as against 9.8% in FY23.
• Depreciation charges increased by 90.7% and finance costs increased by 169.7% YoY, respectively.
• Other income grew by 64.8% YoY.
• Net profit for the year grew by 25.2% YoY.
• Net profit margins during the year grew from 3.8% in FY23 to 3.9% in FY24.

CONFIDENCE PETROLEUM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,047	26,985	22.4%
Other income	Rs m	91	150	64.8%
Total Revenues	Rs m	22,138	27,135	22.6%
Gross profit	Rs m	2,171	3,616	66.5%
Depreciation	Rs m	841	1,603	90.7%
Interest	Rs m	274	738	169.7%
Profit before tax	Rs m	1,148	1,426	24.2%
Tax	Rs m	307	373	21.5%
Profit after tax	Rs m	841	1,053	25.2%
Gross profit margin	%	9.8	13.4
Effective tax rate	%	26.7	26.2
Net profit margin	%	3.8	3.9

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CONFIDENCE PETROLEUM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 21.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY23, a fall of 26.8%.
• Current assets rose 34% and stood at Rs 11 billion, while fixed assets rose 35% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 34%.

CONFIDENCE PETROLEUM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,749	11,583	49.5
Current Liabilities	Rs m	4,306	5,225	21.3
Long-term Debt	Rs m	2,870	2,102	-26.8
Total Liabilities	Rs m	16,399	22,025	34.3
Current assets	Rs m	7,863	10,502	33.6
Fixed Assets	Rs m	8,536	11,523	35.0
Total Assets	Rs m	16,399	22,025	34.3

CONFIDENCE PETROLEUM Cash Flow Statement Analysis

• CONFIDENCE PETROLEUM's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 83.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 6 million net cash flows seen during FY23.

CONFIDENCE PETROLEUM 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	-1,248	2,630	-
Cash Flow from Investing Activities	Rs m	-2,043	-3,752	-
Cash Flow from Financing Activities	Rs m	3,296	2,222	-32.6%
Net Cash Flow	Rs m	6	1,099	18,533.9%

Current Valuations for CONFIDENCE PETROLEUM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.8, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.6 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	77.6	85.0
TTM Earnings per share	Rs	3.0	3.3
Diluted earnings per share	Rs	2.5	3.2
Price to Cash Flow	x	12.0	10.6
TTM P/E ratio	x	24.3	32.1
Price / Book Value ratio	x	2.5	2.4
Market Cap	Rs m	19,000	28,171
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for CONFIDENCE PETROLEUM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.8x 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 deteriorated and stood at 2.9x during FY24, from 5.2x 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 declined and down at 9.1% during FY24, from 10.9% 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 15.8% during FY24, from 13.4% 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 8.1% during FY24, from 6.8% 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	1.8	2.0
Debtors’ Days	Days	209	214
Interest coverage	x	5.2	2.9
Debt to equity ratio	x	0.4	0.2
Return on assets	%	6.8	8.1
Return on equity	%	10.9	9.1
Return on capital employed	%	13.4	15.8

To see how CONFIDENCE PETROLEUM has performed over the last 5 years, please visit here.

CONFIDENCE PETROLEUM Share Price Performance

Over the last one year, CONFIDENCE PETROLEUM share price has moved down from Rs 85.9 to Rs 81.8, registering a loss of Rs 4.1 or around 4.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 30,192.0 (up 0.2%). Over the last one year it has moved up from 19,000.3 to 30,192.0, a gain of 11,192 points (up 58.9%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

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