OIL INDIA 2023-24 Annual Report Analysis

Tue, 27 Aug

OIL INDIA 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.

OIL INDIA Income Statement Analysis

• Operating income during the year fell 8.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 36.8% in FY24 as against 48.9% in FY23.
• Depreciation charges increased by 9.4% and finance costs increased by 7.0% YoY, respectively.
• Other income grew by 85.2% YoY.
• Net profit for the year declined by 29.2% YoY.
• Net profit margins during the year declined from 31.6% in FY23 to 24.4% in FY24.

OIL INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	311,429	286,284	-8.1%
Other income	Rs m	7,591	14,059	85.2%
Total Revenues	Rs m	319,019	300,343	-5.9%
Gross profit	Rs m	152,327	105,327	-30.9%
Depreciation	Rs m	19,469	21,290	9.4%
Interest	Rs m	9,009	9,637	7.0%
Profit before tax	Rs m	131,439	88,459	-32.7%
Tax	Rs m	32,895	18,655	-43.3%
Profit after tax	Rs m	98,544	69,805	-29.2%
Gross profit margin	%	48.9	36.8
Effective tax rate	%	25.0	21.1
Net profit margin	%	31.6	24.4

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OIL INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 205 billion as compared to Rs 141 billion in FY23, thereby witnessing an increase of 45.6%.
• Long-term debt stood at Rs 193 billion as compared to Rs 182 billion during FY23, a growth of 5.7%.
• Current assets rose 14% and stood at Rs 229 billion, while fixed assets rose 27% and stood at Rs 754 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 983 billion as against Rs 793 billion during FY23, thereby witnessing a growth of 24%.

OIL INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	384,815	483,390	25.6
Current Liabilities	Rs m	140,636	204,777	45.6
Long-term Debt	Rs m	182,459	192,839	5.7
Total Liabilities	Rs m	793,484	982,736	23.9
Current assets	Rs m	200,114	228,590	14.2
Fixed Assets	Rs m	593,363	754,139	27.1
Total Assets	Rs m	793,484	982,736	23.9

OIL INDIA Cash Flow Statement Analysis

• OIL INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 109 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -126 billion, an improvement of 38.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 16 billion, an improvement of 165% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -304 million from the Rs -2 billion net cash flows seen during FY23.

OIL INDIA 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	114,104	109,331	-4.2%
Cash Flow from Investing Activities	Rs m	-91,314	-126,012	-
Cash Flow from Financing Activities	Rs m	-25,213	16,372	-
Net Cash Flow	Rs m	-2,409	-304	-

Current Valuations for OIL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 64.4, an decline from the EPS of Rs 90.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 714.1, stands at 16.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.5 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	287.2	264.0
TTM Earnings per share	Rs	90.9	64.4
Diluted earnings per share	Rs	60.6	42.9
Price to Cash Flow	x	2.3	3.5
TTM P/E ratio	x	2.8	16.3
Price / Book Value ratio	x	0.7	0.7
Market Cap	Rs m	257,167	321,002
Dividends per share (Unadj.)	Rs	20.0	14.5

Ratio Analysis for OIL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.4x 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 10.2x during FY24, from 15.6x 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 14.4% during FY24, from 25.6% 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 14.5% during FY24, from 24.8% 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 8.1% during FY24, from 13.6% 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	1.4	1.1
Debtors’ Days	Days	3	4
Interest coverage	x	15.6	10.2
Debt to equity ratio	x	0.5	0.4
Return on assets	%	13.6	8.1
Return on equity	%	25.6	14.4
Return on capital employed	%	24.8	14.5

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

OIL INDIA Share Price Performance

Over the last one year, OIL INDIA share price has moved up from Rs 188.4 to Rs 714.1, registering a gain of Rs 525.6 or around 278.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 32,571.0 (up 0.1%). Over the last one year it has moved up from 18,707.2 to 32,571.0, a gain of 13,864 points (up 74.1%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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