GANDHAR OIL REFINERY (INDIA) LTD. 2023-24 Annual Report Analysis

Thu, 15 Aug

GANDHAR OIL REFINERY (INDIA) LTD. 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.

GANDHAR OIL REFINERY (INDIA) LTD. Income Statement Analysis

• Operating income during the year fell 30.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY24 as against 7.8% in FY23.
• Depreciation charges decreased by 6.6% and finance costs decreased by 25.3% YoY, respectively.
• Other income declined by 6.1% YoY.
• Net profit for the year declined by 44.3% YoY.
• Net profit margins during the year declined from 5.2% in FY23 to 4.2% in FY24.

GANDHAR OIL REFINERY (INDIA) LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,794	28,417	-30.3%
Other income	Rs m	224	210	-6.1%
Total Revenues	Rs m	41,018	28,627	-30.2%
Gross profit	Rs m	3,174	1,971	-37.9%
Depreciation	Rs m	165	154	-6.6%
Interest	Rs m	523	391	-25.3%
Profit before tax	Rs m	2,710	1,636	-39.6%
Tax	Rs m	578	449	-22.3%
Profit after tax	Rs m	2,132	1,187	-44.3%
Gross profit margin	%	7.8	6.9
Effective tax rate	%	21.3	27.4
Net profit margin	%	5.2	4.2

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GANDHAR OIL REFINERY (INDIA) LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -49.0%.
• Long-term debt down at Rs 34 million as compared to Rs 223 million during FY23, a fall of 84.9%.
• Current assets fell 1% and stood at Rs 12 billion, while fixed assets fell 12% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 16 billion during FY23, thereby witnessing a fall of 4%.

GANDHAR OIL REFINERY (INDIA) LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,253	11,122	53.3
Current Liabilities	Rs m	7,811	3,981	-49.0
Long-term Debt	Rs m	223	34	-84.9
Total Liabilities	Rs m	16,133	15,521	-3.8
Current assets	Rs m	12,549	12,377	-1.4
Fixed Assets	Rs m	3,584	3,144	-12.3
Total Assets	Rs m	16,133	15,521	-3.8

GANDHAR OIL REFINERY (INDIA) LTD. Cash Flow Statement Analysis

• GANDHAR OIL REFINERY (INDIA) LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -835 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -294 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 472% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 501 million from the Rs -128 million net cash flows seen during FY23.

GANDHAR OIL REFINERY (INDIA) LTD. 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	1,044	-835	-
Cash Flow from Investing Activities	Rs m	-734	-294	-
Cash Flow from Financing Activities	Rs m	-438	1,630	-
Net Cash Flow	Rs m	-128	501	-

Current Valuations for GANDHAR OIL REFINERY (INDIA) LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.1, an decline from the EPS of Rs 26.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 207.8, stands at 14.1 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.8 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	509.9	290.4
TTM Earnings per share	Rs	26.6	12.1
Diluted earnings per share	Rs	21.8	12.1
Price to Cash Flow	x	0.0	19.8
TTM P/E ratio	x	0.0	14.1
Price / Book Value ratio	x	0.0	2.4
Market Cap	Rs m	0	26,577
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for GANDHAR OIL REFINERY (INDIA) LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY24, from 1.6x 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 5.2x during FY24, from 6.2x 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 10.7% during FY24, from 29.4% 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 declined and down at 18.2% during FY24, from 43.2% 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 declined and down at 10.2% during FY24, from 16.5% 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	1.6	3.1
Debtors’ Days	Days	50	68
Interest coverage	x	6.2	5.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.5	10.2
Return on equity	%	29.4	10.7
Return on capital employed	%	43.2	18.2

To see how GANDHAR OIL REFINERY (INDIA) LTD. has performed over the last 5 years, please visit here.

GANDHAR OIL REFINERY (INDIA) LTD. Share Price Performance

Over the last one year, GANDHAR OIL REFINERY (INDIA) LTD. share price has moved up from Rs 0.0 to Rs 207.8, registering a gain of Rs 207.8 or around 0.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,407.4 (down 0.8%). Over the last one year it has moved up from 18,983.0 to 31,407.4, a gain of 12,424 points (up 65.5%).

Overall, the S&P BSE SENSEX is up 21.0% over the year.

(To know more, check out historical annual results for GANDHAR OIL REFINERY (INDIA) LTD. and quarterly results for GANDHAR OIL REFINERY (INDIA) LTD.)