HIND.OIL EXP 2023-24 Annual Report Analysis

Fri, 20 Sep

HIND.OIL EXP 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.

HIND.OIL EXP Income Statement Analysis

• Operating income during the year rose 34.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 45.6% in FY24 as against 53.7% in FY23.
• Depreciation charges increased by 8.6% and finance costs decreased by 15.7% YoY, respectively.
• Other income grew by 112.4% YoY.
• Net profit for the year grew by 16.7% YoY.
• Net profit margins during the year declined from 34.7% in FY23 to 30.2% in FY24.

HIND.OIL EXP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,589	7,491	34.0%
Other income	Rs m	88	187	112.4%
Total Revenues	Rs m	5,677	7,678	35.2%
Gross profit	Rs m	3,003	3,417	13.8%
Depreciation	Rs m	737	800	8.6%
Interest	Rs m	381	321	-15.7%
Profit before tax	Rs m	1,973	2,483	25.8%
Tax	Rs m	32	219	573.7%
Profit after tax	Rs m	1,940	2,264	16.7%
Gross profit margin	%	53.7	45.6
Effective tax rate	%	1.6	8.8
Net profit margin	%	34.7	30.2

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HIND.OIL EXP Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -20.2%.
• Long-term debt down at Rs 821 million as compared to Rs 934 million during FY23, a fall of 12.0%.
• Current assets rose 22% and stood at Rs 6 billion, while fixed assets fell 0% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 5%.

HIND.OIL EXP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,472	11,744	24.0
Current Liabilities	Rs m	5,462	4,358	-20.2
Long-term Debt	Rs m	934	821	-12.0
Total Liabilities	Rs m	18,503	19,515	5.5
Current assets	Rs m	4,688	5,731	22.2
Fixed Assets	Rs m	13,815	13,784	-0.2
Total Assets	Rs m	18,503	19,515	5.5

HIND.OIL EXP Cash Flow Statement Analysis

• HIND.OIL EXP's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -392 million 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 1 billion net cash flows seen during FY23.

HIND.OIL EXP 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	2,193	1,227	-44.1%
Cash Flow from Investing Activities	Rs m	-770	-392	-
Cash Flow from Financing Activities	Rs m	-272	-2,151	-
Net Cash Flow	Rs m	1,151	-1,304	-

Current Valuations for HIND.OIL EXP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an improvement from the EPS of Rs 14.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 239.3, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 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	42.3	56.6
TTM Earnings per share	Rs	14.7	17.1
Diluted earnings per share	Rs	14.7	17.1
Price to Cash Flow	x	5.9	8.3
TTM P/E ratio	x	8.2	15.6
Price / Book Value ratio	x	2.4	2.2
Market Cap	Rs m	22,637	25,295
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HIND.OIL EXP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 0.9x 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 8.7x 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 19.3% during FY24, from 20.5% 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 22.3% during FY24, from 22.6% 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 13.2% during FY24, from 12.5% 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	0.9	1.3
Debtors’ Days	Days	764	1,532
Interest coverage	x	6.2	8.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.5	13.2
Return on equity	%	20.5	19.3
Return on capital employed	%	22.6	22.3

To see how HIND.OIL EXP has performed over the last 5 years, please visit here.

HIND.OIL EXP Share Price Performance

Over the last one year, HIND.OIL EXP share price has moved up from Rs 165.0 to Rs 239.3, registering a gain of Rs 74.4 or around 45.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 29,905.3 (down 1.8%). Over the last one year it has moved up from 19,147.1 to 29,905.3, a gain of 10,758 points (up 56.2%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for HIND.OIL EXP and quarterly results for HIND.OIL EXP)