SAVITA OIL 2023-24 Annual Report Analysis

Thu, 19 Sep

SAVITA OIL 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.

SAVITA OIL Income Statement Analysis

• Operating income during the year rose 3.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY24 as against 9.3% in FY23.
• Depreciation charges increased by 12.4% and finance costs increased by 6.7% YoY, respectively.
• Other income grew by 210.6% YoY.
• Net profit for the year declined by 11.0% YoY.
• Net profit margins during the year declined from 6.2% in FY23 to 5.4% in FY24.

SAVITA OIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	36,304	37,408	3.0%
Other income	Rs m	229	712	210.6%
Total Revenues	Rs m	36,534	38,121	4.3%
Gross profit	Rs m	3,358	2,534	-24.5%
Depreciation	Rs m	206	232	12.4%
Interest	Rs m	354	378	6.7%
Profit before tax	Rs m	3,028	2,637	-12.9%
Tax	Rs m	771	630	-18.3%
Profit after tax	Rs m	2,257	2,008	-11.0%
Gross profit margin	%	9.3	6.8
Effective tax rate	%	25.5	23.9
Net profit margin	%	6.2	5.4

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SAVITA OIL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 4.4%.
• Current assets rose 5% and stood at Rs 21 billion, while fixed assets rose 37% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 25 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 9%.

SAVITA OIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,491	16,217	11.9
Current Liabilities	Rs m	8,049	8,402	4.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	22,637	24,770	9.4
Current assets	Rs m	19,547	20,547	5.1
Fixed Assets	Rs m	3,090	4,223	36.7
Total Assets	Rs m	22,637	24,770	9.4

SAVITA OIL Cash Flow Statement Analysis

• SAVITA OIL'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 178 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -631 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -91 million net cash flows seen during FY23.

SAVITA OIL 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	-642	1,671	-
Cash Flow from Investing Activities	Rs m	1,238	178	-85.6%
Cash Flow from Financing Activities	Rs m	-687	-631	-
Net Cash Flow	Rs m	-91	1,219	-

Current Valuations for SAVITA OIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.1, an decline from the EPS of Rs 32.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 559.9, stands at 20.8 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 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 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	525.4	541.4
TTM Earnings per share	Rs	32.7	29.1
Diluted earnings per share	Rs	32.9	29.3
Price to Cash Flow	x	6.6	11.2
TTM P/E ratio	x	7.2	20.8
Price / Book Value ratio	x	1.4	1.5
Market Cap	Rs m	20,835	24,971
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for SAVITA OIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x 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 8.0x during FY24, from 9.5x 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 12.4% during FY24, from 15.6% 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 18.6% during FY24, from 23.3% 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 9.6% during FY24, from 11.5% 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	2.4
Debtors’ Days	Days	754	765
Interest coverage	x	9.5	8.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.5	9.6
Return on equity	%	15.6	12.4
Return on capital employed	%	23.3	18.6

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

SAVITA OIL Share Price Performance

Over the last one year, SAVITA OIL share price has moved up from Rs 332.8 to Rs 559.9, registering a gain of Rs 227.1 or around 68.2%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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