PANAMA PETRO 2023-24 Annual Report Analysis

Tue, 6 Aug

PANAMA PETRO 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.

PANAMA PETRO Income Statement Analysis

• Operating income during the year fell 23.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 38.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.0% in FY24 as against 13.7% in FY23.
• Depreciation charges decreased by 29.7% and finance costs increased by 44.5% YoY, respectively.
• Other income grew by 63.3% YoY.
• Net profit for the year declined by 43.7% YoY.
• Net profit margins during the year declined from 10.4% in FY23 to 7.6% in FY24.

PANAMA PETRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,487	17,249	-23.3%
Other income	Rs m	69	113	63.3%
Total Revenues	Rs m	22,556	17,362	-23.0%
Gross profit	Rs m	3,087	1,890	-38.8%
Depreciation	Rs m	94	66	-29.7%
Interest	Rs m	116	167	44.5%
Profit before tax	Rs m	2,946	1,769	-40.0%
Tax	Rs m	616	456	-25.9%
Profit after tax	Rs m	2,330	1,313	-43.7%
Gross profit margin	%	13.7	11.0
Effective tax rate	%	20.9	25.8
Net profit margin	%	10.4	7.6

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PANAMA PETRO 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 -4.8%.
• Current assets fell 13% and stood at Rs 10 billion, while fixed assets rose 13% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 14 billion during FY23, thereby witnessing a fall of 8%.

PANAMA PETRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,521	8,555	-10.1
Current Liabilities	Rs m	4,592	4,374	-4.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,223	13,057	-8.2
Current assets	Rs m	11,551	10,028	-13.2
Fixed Assets	Rs m	2,672	3,029	13.3
Total Assets	Rs m	14,223	13,057	-8.2

PANAMA PETRO Cash Flow Statement Analysis

• PANAMA PETRO's cash flow from operating activities (CFO) during FY24 stood at Rs -321 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 855 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -392 million, an improvement of 59% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 138 million from the Rs 347 million net cash flows seen during FY23.

PANAMA PETRO 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	2,095	-321	-
Cash Flow from Investing Activities	Rs m	-787	855	-
Cash Flow from Financing Activities	Rs m	-960	-392	-
Net Cash Flow	Rs m	347	138	-60.1%

Current Valuations for PANAMA PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.7, an decline from the EPS of Rs 38.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 416.2, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	371.8	285.2
TTM Earnings per share	Rs	38.5	21.7
Diluted earnings per share	Rs	38.5	21.7
Price to Cash Flow	x	7.3	14.5
TTM P/E ratio	x	7.6	12.6
Price / Book Value ratio	x	2.1	2.3
Market Cap	Rs m	20,076	20,025
Dividends per share (Unadj.)	Rs	8.0	7.0

Ratio Analysis for PANAMA PETRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.5x 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 11.6x during FY24, from 26.5x 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 15.3% during FY24, from 24.5% 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 22.6% during FY24, from 32.2% 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 11.3% during FY24, from 17.2% 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	2.5	2.3
Debtors’ Days	Days	6	8
Interest coverage	x	26.5	11.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.2	11.3
Return on equity	%	24.5	15.3
Return on capital employed	%	32.2	22.6

To see how PANAMA PETRO has performed over the last 5 years, please visit here.

PANAMA PETRO Share Price Performance

Over the last one year, PANAMA PETRO share price has moved up from Rs 291.2 to Rs 416.2, registering a gain of Rs 125.0 or around 42.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,562.1 (up 1.6%). Over the last one year it has moved up from 18,909.6 to 31,562.1, a gain of 12,653 points (up 66.9%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for PANAMA PETRO and quarterly results for PANAMA PETRO)