SOUTHERN PETRO 2023-24 Annual Report Analysis

Thu, 26 Sep

SOUTHERN 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.

SOUTHERN PETRO Income Statement Analysis

• Operating income during the year fell 31.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY24 as against 13.3% in FY23.
• Depreciation charges decreased by 12.7% and finance costs increased by 22.8% YoY, respectively.
• Other income declined by 11.3% YoY.
• Net profit for the year declined by 62.4% YoY.
• Net profit margins during the year declined from 10.6% in FY23 to 5.8% in FY24.

SOUTHERN PETRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,288	19,439	-31.3%
Other income	Rs m	206	183	-11.3%
Total Revenues	Rs m	28,495	19,622	-31.1%
Gross profit	Rs m	3,753	2,279	-39.3%
Depreciation	Rs m	437	382	-12.7%
Interest	Rs m	309	380	22.8%
Profit before tax	Rs m	3,212	1,701	-47.1%
Tax	Rs m	205	570	177.7%
Profit after tax	Rs m	3,007	1,131	-62.4%
Gross profit margin	%	13.3	11.7
Effective tax rate	%	6.4	33.5
Net profit margin	%	10.6	5.8

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SOUTHERN PETRO Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -44.1%.
• Long-term debt down at Rs 241 million as compared to Rs 1 billion during FY23, a fall of 76.2%.
• Current assets fell 50% and stood at Rs 6 billion, while fixed assets rose 23% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 21 billion during FY23, thereby witnessing a fall of 17%.

SOUTHERN PETRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,858	10,756	9.1
Current Liabilities	Rs m	11,133	6,221	-44.1
Long-term Debt	Rs m	1,014	241	-76.2
Total Liabilities	Rs m	20,749	17,135	-17.4
Current assets	Rs m	11,522	5,778	-49.9
Fixed Assets	Rs m	9,228	11,357	23.1
Total Assets	Rs m	20,749	17,135	-17.4

SOUTHERN PETRO Cash Flow Statement Analysis

• SOUTHERN PETRO's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 410.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 526 million from the Rs 114 million net cash flows seen during FY23.

SOUTHERN 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	-114	2,274	-
Cash Flow from Investing Activities	Rs m	-343	-1,752	-
Cash Flow from Financing Activities	Rs m	572	4	-99.2%
Net Cash Flow	Rs m	114	526	362.2%

Current Valuations for SOUTHERN PETRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an decline from the EPS of Rs 14.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.5, stands at 18.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	138.9	95.5
TTM Earnings per share	Rs	14.8	5.6
Diluted earnings per share	Rs	14.8	5.6
Price to Cash Flow	x	3.3	11.0
TTM P/E ratio	x	4.1	18.4
Price / Book Value ratio	x	1.4	1.6
Market Cap	Rs m	13,629	16,693
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for SOUTHERN PETRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x 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 deteriorated and stood at 5.5x during FY24, from 11.4x 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 10.5% during FY24, from 30.5% 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 18.9% during FY24, from 32.4% 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 8.8% during FY24, from 16.0% 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	1.0	0.9
Debtors’ Days	Days	0	0
Interest coverage	x	11.4	5.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	16.0	8.8
Return on equity	%	30.5	10.5
Return on capital employed	%	32.4	18.9

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

SOUTHERN PETRO Share Price Performance

Over the last one year, SOUTHERN PETRO share price has moved up from Rs 74.6 to Rs 84.5, registering a gain of Rs 9.9 or around 13.3%.

Overall, the S&P BSE SENSEX is up 29.4% over the year.

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