PETRONET LNG 2023-24 Annual Report Analysis

Tue, 13 Aug

PETRONET LNG 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.

PETRONET LNG Income Statement Analysis

• Operating income during the year fell 12.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY24 as against 8.1% in FY23.
• Depreciation charges increased by 1.6% and finance costs decreased by 12.4% YoY, respectively.
• Other income grew by 16.3% YoY.
• Net profit for the year grew by 10.6% YoY.
• Net profit margins during the year grew from 5.3% in FY23 to 6.7% in FY24.

PETRONET LNG Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	598,994	527,293	-12.0%
Other income	Rs m	5,231	6,085	16.3%
Total Revenues	Rs m	604,224	533,378	-11.7%
Gross profit	Rs m	48,540	52,055	7.2%
Depreciation	Rs m	7,644	7,766	1.6%
Interest	Rs m	3,305	2,897	-12.4%
Profit before tax	Rs m	42,822	47,477	10.9%
Tax	Rs m	10,944	12,207	11.5%
Profit after tax	Rs m	31,878	35,270	10.6%
Gross profit margin	%	8.1	9.9
Effective tax rate	%	25.6	25.7
Net profit margin	%	5.3	6.7

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PETRONET LNG Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 42 billion as compared to Rs 29 billion in FY23, thereby witnessing an increase of 41.1%.
• Current assets rose 8% and stood at Rs 129 billion, while fixed assets rose 20% and stood at Rs 179 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 308 billion as against Rs 268 billion during FY23, thereby witnessing a growth of 15%.

PETRONET LNG Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	152,646	174,101	14.1
Current Liabilities	Rs m	29,462	41,582	41.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	267,995	308,283	15.0
Current assets	Rs m	118,928	128,941	8.4
Fixed Assets	Rs m	149,068	179,342	20.3
Total Assets	Rs m	267,995	308,283	15.0

PETRONET LNG Cash Flow Statement Analysis

• PETRONET LNG's cash flow from operating activities (CFO) during FY24 stood at Rs 49 billion, an improvement of 93.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -22 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 17 billion from the Rs -10 billion net cash flows seen during FY23.

PETRONET LNG 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	25,185	48,711	93.4%
Cash Flow from Investing Activities	Rs m	-11,417	-10,560	-
Cash Flow from Financing Activities	Rs m	-23,681	-21,545	-
Net Cash Flow	Rs m	-9,913	16,607	-

Current Valuations for PETRONET LNG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.5, an improvement from the EPS of Rs 21.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 370.7, stands at 14.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	399.3	351.5
TTM Earnings per share	Rs	21.3	23.5
Diluted earnings per share	Rs	21.3	23.5
Price to Cash Flow	x	8.7	8.5
TTM P/E ratio	x	10.8	14.5
Price / Book Value ratio	x	2.1	2.1
Market Cap	Rs m	325,088	365,850
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for PETRONET LNG

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY24, from 4.0x 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 17.4x during FY24, from 14.0x 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 20.3% during FY24, from 20.9% 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 declined and down at 28.9% during FY24, from 30.2% 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 12.4% during FY24, from 13.1% 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	4.0	3.1
Debtors’ Days	Days	2	3
Interest coverage	x	14.0	17.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.1	12.4
Return on equity	%	20.9	20.3
Return on capital employed	%	30.2	28.9

To see how PETRONET LNG has performed over the last 5 years, please visit here.

PETRONET LNG Share Price Performance

Over the last one year, PETRONET LNG share price has moved up from Rs 225.4 to Rs 370.7, registering a gain of Rs 145.3 or around 64.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,867.5 (down 0.6%). Over the last one year it has moved up from 19,059.8 to 31,867.5, a gain of 12,808 points (up 67.2%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for PETRONET LNG and quarterly results for PETRONET LNG)