SUPREME PETR 2023-24 Annual Report Analysis

Mon, 10 Jun

SUPREME PETR 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.

SUPREME PETR Income Statement Analysis

• Operating income during the year fell 0.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY24 as against 12.5% in FY23.
• Depreciation charges increased by 27.6% and finance costs increased by 61.5% YoY, respectively.
• Other income grew by 15.6% YoY.
• Net profit for the year declined by 30.4% YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 6.6% in FY24.

SUPREME PETR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	52,872	52,533	-0.6%
Other income	Rs m	589	681	15.6%
Total Revenues	Rs m	53,461	53,215	-0.5%
Gross profit	Rs m	6,608	4,697	-28.9%
Depreciation	Rs m	466	595	27.6%
Interest	Rs m	62	101	61.5%
Profit before tax	Rs m	6,669	4,682	-29.8%
Tax	Rs m	1,687	1,217	-27.9%
Profit after tax	Rs m	4,981	3,465	-30.4%
Gross profit margin	%	12.5	8.9
Effective tax rate	%	25.3	26.0
Net profit margin	%	9.4	6.6

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SUPREME PETR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 6.7%.
• Current assets fell 1% and stood at Rs 20 billion, while fixed assets rose 51% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 12%.

SUPREME PETR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,439	20,191	9.5
Current Liabilities	Rs m	8,422	8,987	6.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	27,310	30,648	12.2
Current assets	Rs m	20,284	20,027	-1.3
Fixed Assets	Rs m	7,026	10,621	51.2
Total Assets	Rs m	27,310	30,648	12.2

SUPREME PETR Cash Flow Statement Analysis

• SUPREME PETR's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 83.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 23.8% 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 2 billion from the Rs -368 million net cash flows seen during FY23.

SUPREME PETR 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	3,036	5,570	83.4%
Cash Flow from Investing Activities	Rs m	-1,468	-1,818	-
Cash Flow from Financing Activities	Rs m	-1,936	-1,969	-
Net Cash Flow	Rs m	-368	1,784	-

Current Valuations for SUPREME PETR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.4, an decline from the EPS of Rs 26.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 701.6, stands at 38.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 26.3 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	281.2	279.4
TTM Earnings per share	Rs	26.5	18.4
Diluted earnings per share	Rs	26.5	18.4
Price to Cash Flow	x	12.8	26.3
TTM P/E ratio	x	14.0	38.1
Price / Book Value ratio	x	6.8	5.3
Market Cap	Rs m	124,606	106,817
Dividends per share (Unadj.)	Rs	9.0	9.0

Ratio Analysis for SUPREME PETR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY24, from 2.4x 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 47.4x during FY24, from 107.8x 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 17.2% during FY24, from 27.0% 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 23.7% during FY24, from 36.5% 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 11.6% during FY24, from 18.5% 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	2.4	2.2
Debtors’ Days	Days	250	274
Interest coverage	x	107.8	47.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.5	11.6
Return on equity	%	27.0	17.2
Return on capital employed	%	36.5	23.7

To see how SUPREME PETR has performed over the last 5 years, please visit here.

SUPREME PETR Share Price Performance

Over the last one year, SUPREME PETR share price has moved up from Rs 373.0 to Rs 701.6, registering a gain of Rs 328.6 or around 88.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 28,762.5 (up 0.5%). Over the last one year it has moved up from 17,888.1 to 28,762.5, a gain of 10,874 points (up 60.8%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for SUPREME PETR and quarterly results for SUPREME PETR)