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PETRONET LNG

Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12

12 mths 12 mths 12 mths 12 mths 12 mths

SHAREHOLDER'S FUNDS
Equity Share Capital 750.00 750.00 750.00 750.00 750.00 750
Total Share Capital 750.00 750.00 750.00 750.00 750.00 750
Reserves and Surplus 7,343.89 5,626.44 4,938.63 4,236.12 3,699.69 2,769.78
Total Reserves and Surplus 7,343.89 5,626.44 4,938.63 4,236.12 3,699.69 2,769.78
Total Shareholders Funds 8,093.89 6,376.44 5,688.63 4,986.12 4,449.69 3,519.78
NON-CURRENT LIABILITIES
Long Term Borrowings 1,450.03 2,060.99 2,373.81 2,647.74 2,718.22 2,934.16
Deferred Tax Liabilities [Net] 730.18 871.00 727.00 553.00 391.00 363.00
Other Long Term Liabilities 1,385.76 1,400.00 900.00 300.00 0.00 0.00
Long Term Provisions 6.56 5.60 4.28 3.80 3.37 4.56
Total Non-Current Liabilities 3,572.53 4,337.59 4,005.09 3,504.54 3,112.59 3,301.72
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 248.72 0.00 99.81
Trade Payables 944.60 772.13 320.89 1,886.84 2,297.35 1,268.55
Other Current Liabilities 1,208.63 709.00 914.75 1,017.39 996.62 797.2
Short Term Provisions 9.45 252.86 189.32 269.07 226.57 223.98
Total Current Liabilities 2,162.68 1,733.99 1,424.96 3,422.02 3,520.54 2,389.54
Total Capital And Liabilities 13,829.10 12,448.02 11,118.68 11,912.68 11,082.82 9,211.04
ASSETS
NON-CURRENT ASSETS
Tangible Assets 8,418.51 6,803.67 6,932.02 6,261.27 2,351.98 2,521.43
Intangible Assets 4.53 6.87 10.57 3.77 5.90 0.03
Capital Work-In-Progress 48.55 1,550.48 746.90 879.93 4,330.51 3,290.03
Fixed Assets 8,471.59 8,361.02 7,689.49 7,144.97 6,688.39 5,811.49
Non-Current Investments 164.38 90.00 90.00 90.00 139.88 139.88
Long Term Loans And Advances 22.67 541.20 673.89 252.00 117.30 0.00
Other Non-Current Assets 267.83 2.00 0.00 0.00 0.00 153.52
Total Non-Current Assets 8,926.47 8,994.22 8,453.38 7,486.97 6,945.57 6,104.89
CURRENT ASSETS
Current Investments 2,770.73 0 0 49.88 0 0.00
Inventories 540.52 246.10 882.63 955.69 1,036.63 712.35
Trade Receivables 1,210.79 988.53 1,342.77 2,015.67 1,689.80 1,285.89
Cash And Cash Equivalents 327.34 2,182.89 364.09 1,232.73 1,268.53 983.91
Short Term Loans And Advances 0 35.02 75.44 157.76 139.67 115.37
OtherCurrentAssets 53.25 1.26 0.37 13.98 2.62 8.63
Total Current Assets 4,902.63 3,453.80 2,665.30 4,425.71 4,137.25 3,106.15
Total Assets 13,829.10 12,448.02 11,118.68 11,912.68 11,082.82 9,211.04
profit and loss

Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12

12 mths 12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 24,550.76 27,118.25 39,500.95 37,747.58 31,467.44 22,695.86
Revenue From Operations [Net] 24,550.76 27,118.25 39,500.95 37,747.58 31,467.44 22,695.86
Other Operating Revenues 65.27 15.18 0.00 0.00 0.00 0.00
Total Operating Revenues 24,616.03 27,133.43 39,500.95 37,747.58 31,467.44 22,695.86
Other Income 346.64 170.44 154.78 83.75 181.71 84.88
Total Revenue 24,962.67 27,303.87 39,655.73 37,831.33 31,649.15 22,780.74
EXPENSES
Cost Of Materials Consumed 21,416.92 25,075.65 37,610.86 35,849.49 29,304.95 20,586.74
Employee Benefit Expenses 73.86 71.69 57.10 46.62 37.01 29.76
Finance Costs 209.65 238.75 293.49 219.58 118.41 177.39
Depreciation And Amortisation Expenses 369.07 321.60 315.38 308.10 186.60 184.19
Other Expenses 532.98 395.79 394.00 353.02 281.90 250.12
Total Expenses 22,602.48 26,103.48 38,670.83 36,776.81 29,928.87 21,228.20
Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax 2,360.19 1,200.39 984.90 1,054.52 1,720.28 1,552.54
Profit/Loss Before Tax 2,360.19 1,200.39 984.90 1,054.52 1,720.28 1,552.54
Tax Expenses-Continued Operations
Current Tax 512.88 256.99 -71.62 180.60 543.00 480
Less: MAT Credit Entitlement 0.00 48.07 0.00 0.00 0.00 15
Deferred Tax 141.64 144.00 174.00 162.00 28.00 0
Tax For Earlier Years 0.00 -66.55 0.00 0.00 0.00 495
Total Tax Expenses 654.52 286.37 102.38 342.60 571.00 1,057.54
Profit/Loss After Tax And Before ExtraOrdinary Items 1,705.67 914.02 882.52 711.92 1,149.28 0
Profit/Loss From Continuing Operations 1,705.67 914.02 882.52 711.92 1,149.28 1,057.54
Profit/Loss For The Period 1,705.67 914.02 882.52 711.92 1,149.28 1,057.54
Cash Flow of Hindustan Petroleum Corporation
------------------- in Rs. Cr. -------------------
Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit/Loss Before Extraordinary Items And Tax 2,360.19 1,200.39 984.90 1,054.52 1,720.28
Net CashFlow From Operating Activities 2,067.58 3,374.11 829.76 963.58 1,823.36
Net Cash Used In Investing Activities -3,175.07 -853.85 -665.38 -802.77 -768.54
Net Cash Used From Financing Activities -748.23 -699.38 -1,034.02 -196.61 -770.20
Net Inc/Dec In Cash And Cash Equivalents -1,855.72 1,820.88 -869.64 -35.80 284.62
Cash And Cash Equivalents Begin of Year 2,176.71 355.83 1,227.47 1,268.53 983.91
Cash And Cash Equivalents End Of Year 320.99 2,176.71 357.83 1,232.73 1,268.53
Total Current Liabilities Total Current Assets Retained Earnings working capital Operating profit sales Total Liabilities
2,162.68 4,902.63 480,926 2,739.95 2,360.19 24,550.76 13,829.10
1,733.99 3,453.80 424,686 1,719.81 1,200.39 27,118.25 12,448.02
1,424.96 2,665.30 0 1,240.34 984.90 39,500.95 11,118.68
3,422.02 4,425.71 0 1,003.69 1,054.52 37,747.58 11,912.68
3,520.54 4,137.25 0 616.71 1,720.28 31,467.44 11,082.82
2,389.54 3,106.15 0 1,552.54 22,695.86 9,211.04
Net Worth Equity Share Capital No. of Total EBIT B.V Finance
Share assets cost
holder
8,093.89 750.00 75 13,829.10 2,150.54 107.9185 209.65
6,376.44 750.00 75 12,448.02 961.64 85.0192 238.75
5,688.63 750.00 75 11,118.68 691.41 75.8484 293.49
4,986.12 750.00 75 11,912.68 834.94 66.4816 219.58
4,449.69 750.00 75 11,082.82 1,601.87 59.3292 118.41
3,519.78 750.00 75 9,211.04 1,375.15 46.9304 177.39

x2=R.E/T.A X3=EBIT/T.A X4=B.V of Equity/T.L X5=Sales/T.A z= 0.717X1 + 0.847X2 + 3.107X3 + 0.420X4 + 0.998X5
34.77637735 0.155508312 0.007803728 1.775297019 31.85583864
34.1167511 0.077252447 0.006829938 2.178519154 31.41300245
0 0.06218454 0.006821709 3.552665424 3.821617231
0 0.070088343 0.005580743 3.168689161 3.442870238
0 0.144536318 0.005353258 2.839299023 3.324841019

The Z score model judges the credit strength of the company and bankruptcy ratio of the
company. It uses the profitability, leverage, liquidity, solvency and activity to predict whether a
company is solvent or insolvent.
Activity Ratio

Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12


Inventories 540.52 246.10 882.63 955.69 1,036.63 712.35
cost of goods sold 21,149.92 25,726.82 37,697.82 35,949.34 28,999.34
purchases 21,444.34 25,090.29 37,624.76 35,868.40 29,323.62
avg inventory 393.31 564.37 919.16 996.16 874.49

Inventory Turnover 53.774173 45.5854279 41.0133383 36.0879176 33.1614312


avg inventory in days 6.78764506 8.0069447 8.89954379 10.1141885 11.0067626

Revenue From Operations 2,360.19 1,200.39 984.90 1,054.52 1,720.28 1,552.54


Trade Receivables 1,210.79 988.53 1,342.77 2,015.67 1,689.80 1,285.89
avg trade receivables 1099.66 1165.65 1679.22 1852.735 1487.845

Receivables turnover 2.14629067 1.02980311 0.58652231 0.56916936 1.15622259


Avg reveivables in days 170.060843 354.436683 622.312214 641.285395 315.683159

Account payable 944.60 772.13 320.89 1,886.84 2,297.35 1,268.55


avg trade payable 858.37 546.51 1,103.87 2,092.10 1,782.95

Payable turnover ratio 24.9827754 45.9100291 34.0845665 17.1447281 16.4466867


avg payable in days 14.6100661 7.95033258 10.708659 21.2893431 22.1929199

Length of of operating cycle 176.848488 362.443628 631.211758 651.399584 326.689922


Length of Cash cycle 162.238422 354.493295 620.503099 630.110241 304.497002

Revenue From Operations 2,360.19 1,200.39 984.90 1,054.52 1,720.28 1,552.54


Total Non-Current Assets 8,926.47 8,994.22 8,453.38 7,486.97 6,945.57 6,104.89
Avg non current assests 8960.345 8723.8 7970.175 7216.27 6525.23

Fixed assest turnover ratio 0.26340392 0.13759944 0.1235732 0.1461309 0.26363515

Total Assets 13,829.10 12,448.02 11,118.68 11,912.68 11,082.82 9,211.04


Avg Total Assests 6914.55 6224.01 5559.34 5956.34 5541.41

Total Assests turnover Ratio 0.34133675 0.19286441 0.17716132 0.17704161 0.31044084

Net CashFlow From Operating Activities 2,067.58 3,374.11 829.76 963.58 1,823.36
Total Current Liabilities 13,829.10 12,448.02 11,118.68 11,912.68 11,082.82 9,211.04

Cash Flow From Operation Ratio 0.14950937 0.27105596 0.07462756 0.08088692 0.1645213

Activity ratios measures the firm’s ability to convert different accounts of the balance sheet into
cash.
Since the average inventory in days is decreasing, it shows that there is increase in sales and the
inventories are turned into cash.
The company’s trade receivables is highly fluctuating over the years which is not a good
indicator as it is taking far longer time to recover its credit sales to survive.

Since the accounts payable is decreasing the position of the company is increasing.
Since the fixed asset turnover ratio is increasing it shows that company is able to generate
income from its fixed assets and there is proper utilization of the fixed assets.

LIQUIDITY RATIO

Current Assests 4,902.63 3,453.80 2,665.30 4,425.71 4,137.25 3,106.15


Current Liabilities 2,162.68 1,733.99 1,424.96 3,422.02 3,520.54 2,389.54

Current Ratio 2.26692345 1.991822 1.870438 1.29330337 1.17517483 1.29989454

Cash And Cash Equivalents327.34 2,182.89 364.09 1,232.73 1,268.53 983.91


Trade Receivables 1,210.79 988.53 1,342.77 2,015.67 1,689.80 1,285.89
Current Liabilities 2,162.68 1,733.99 1,424.96 3,422.02 3,520.54 2,389.54

Quick Ratio 0.71121479 1.828972 1.19783 0.94926389 0.84030575 0.94988994


The liquidity ratio, is a computation that is used to measure a company's ability to pay its
short-term debts. Since the current assets is more than current liabilities, the company is able
to pay its debts.
Solvency Ratio
Equity Share Capital 750.00 750.00 750.00 750.00 750.00 750
Long Term Borrowings 1,450.03 2,060.99 2,373.81 2,647.74 2,718.22 2,934.16

Debt-Equity Ratio 1.933373 2.747987 3.16508 3.53032 3.624293333 3.91221333

EBIT 2,150.54 961.64 691.41 834.94 1,601.87 1,375.15


Interest 209.65 238.75 293.49 219.58 118.41 177.39

Interest Coverage Ratio 10.25776 4.027812 2.355821 3.802441024 13.52816485 7.75212808

Trade Payables 944.60 772.13 320.89 1,886.84 2,297.35 1,268.55


Short Term Borrowings 0.00 0.00 0.00 248.72 0.00 99.81
Long Term Borrowings 1,450.03 2,060.99 2,373.81 2,647.74 2,718.22 2,934.16
Total Debt 1,450.03 2,060.99 2,373.81 2,896.46 2,718.22 3,033.97
Total debt including payables 2,394.63 2,833.12 2,694.70 4,783.30 5,015.57 4,302.52
Total Capital 3,144.63 3,583.12 3,444.70 5,533.30 5,765.57 5,052.52

Solvency are primarily used to measure a company's ability to meet its long-term obligations. In
general, a solvency ratio measures the size of a company's profitability and compares it to its
obligations.
Profitibitlity Ratio

Profit/Loss For The Period 6,208.80 3,862.74 2,733.26 1,733.77 904.71 911.43
Revenue From Operations [Net] 186,709.67 179,281.07 206,380.37 223,036.67 206,529.34 178,139.23

Net Profit Ratio 0.033253768 0.02154572 0.0132438 0.007773475 0.00438054

EBIT 2,150.54 961.64 691.41 834.94 1,601.87 1,375.15


Total Debt 1,450.03 2,060.99 2,373.81 2,896.46 2,718.22 3,033.97
Equity Share Capital 750.00 750.00 750.00 750.00 750.00 750
avg(debt + Equity) 1100.015 1405.495 1561.905 1823.23 1734.11

Return on Total Capital 1.955009704 0.68420023 0.44267097 0.457945514 0.923741862

Total Shareholders Funds 8,093.89 6,376.44 5,688.63 4,986.12 4,449.69 3,519.78

ROE 76.7097156 60.5783164 48.0477725 34.77192687 20.33197818

Avg Total Assests 13829.1 12448.02 11118.68 11912.68 11082.82 9211.04

ROA 0.155508312 0.07725245 0.06218454 0.070088343 0.144536318

EPS 82.78 51.50 36.44 23.12 12.06

Profitability ratios are a class of financial metrics that are used to assess a business's ability to
generate earnings compared to its expenses and other relevant costs incurred during a specific
period of time.
Since the net profit ratio has increased over the years, it shows that the company performance
has increased and it is able to generate profits in the long run.
Since the ROE has increased over the years, it shows that company has done good job with the
investor’s money.
ROA is increasing over the years, it depicts that the company is able to generate sales using its
assets optimally.
Earning per share is the same as any profitability or market prospect ratio.
Since EPS is increasing, it shows that the company is more profitable and is able to distribute
more profits to its shareholders.
Dupont Analysis

PAT Sales Assests Equity EBIT PBT Net Worth


1,705.67 24,550.76 13,829.10 750.00 2,150.54 2,360.19 8,093.89
914.02 27,118.25 12,448.02 750.00 961.64 1,200.39 6,376.44
882.52 39,500.95 11,118.68 750.00 691.41 984.90 5,688.63
711.92 37,747.58 11,912.68 750.00 834.94 1,054.52 4,986.12
1149.28 31,467.44 11,082.82 750.00 1,601.87 1,720.28 4,449.69
1057.54 22,695.86 9,211.04 750.00 1,375.15 1,552.54 3,519.78

Dupont Analysis (PAT/Sales)* (Sales/Assests)* Assest/Equity ROE


Year
2017 0.069475242 1.775297019 18.4388 2.274226667
2016 0.033704977 2.178519154 16.59736 1.218693333
2015 0.022341741 3.552665424 14.82490667 1.176693333
2014 0.018860017 3.168689161 15.88357333 0.949226667
2013 0.036522831 2.839299023 14.77709333 1.532373333

Five Factor Analysis

Profit/Loss Before Tax 2,360.19 1,200.39 984.90 1,054.52 1,720.28 1,552.54


Finance Costs 209.65 238.75 293.49 219.58 118.41 177.39

Year (EBIT/Sales)* (Sales/Assest)* (PBT/EBIT)* (PAT?PBT)* Assest/Networth ROE ROE%


2017 0.087595659 1.775297019 1.097487143 0.793135678 1.708585118 0.23127951 23.12795
2016 0.03546099 2.178519154 1.248273782 0.950480429 1.952189623 0.17893169 17.89317
2015 0.01750363 3.552665424 1.42448041 1.276406184 1.954544416 0.22099037 22.09904
2014 0.022119034 3.168689161 1.262988957 0.852660071 2.389168331 0.18033002 18.033
2013 0.050905635 2.839299023 1.073919856 0.717461467 2.490694857 0.27737542 27.73754

DuPont analysis is a method of performance measurement that was started by the DuPont
Corporation in the 1920s. With this method, assets are measured at their gross book
value rather than at net book value to produce a higher return on equity (ROE). It is also known
as DuPont identity.
Since the ROE has increased over the years, this shows that the company is in a profitable
position and is able to give profits to its shareholders.
According to the 5 factor analysis above, we can see that the tax ratio is less than 1 which
shows the higher tax burden on the company.
Estimation of ROE

Method One
17-Mar 16-Mar 15-Mar 14-Mar 13-Mar 12-Mar
Profit/Loss for the period 6,208.80 3,862.74 2,733.26 1,733.77 904.71 911.43
Equity Share Capital 750 750 750 750 750 750

ROE 8.2784 5.15032 3.644346667 2.311693333 1.20628 1.21524


5.691022222

Method 2

Net Profit Ratio 0.033253768 0.021545721 0.013243798 0.007773475 0.004381

Sales 24,550.76 27,118.25 39,500.95 37,747.58 31,467.44 22,695.86


Total Assets 13,829.10 12,448.02 11,118.68 11,912.68 11,082.82 9,211.04
Asset Turnover Ratio 1.775297019 2.178519154 3.552665424 3.168689161 2.839299 2.463985

Leverage Ratio 1.933373333 2.747986667 3.16508 3.53032 3.624293 3.912213

Net Profit Ratio Fixed assest turnover ratio Leverage Ratio ROE Estimated ROE
0.033253768 0.26340392 1.933373333 0.743343674 0.937673316
0.021545721 0.137599441 2.747986667 0.969043943
0.013243798 0.123573196 3.16508 1.100632332

Retained Earnings PAT Retention Ratio Avg


2017 480926 1,705.67 281.9572367 248.8641946
2016 424686 914.02 464.6353471
2015 0 882.52 0

Estimation of Ke
RF beta rm Rm-rf Beta*(RM-RF) Ke
5 0.283 16.57 11.57 3.27431 8.27431

Estimation of g
ROE 0.937673316
B 248.8641946
g 233.3533146

Conceptual Approach
1-B Ke-g P/E
-24786.41946 -240.5898846 103.0235311
Time Series Approach

EPS Market price Market price /EPS(Po/E0) Avg Po/Eo


2017 82.78 273 3.297738693 3.548420774
2016 51.50 200 3.883253856
2015 36.44 126.25 3.464269773
2014 23.12 100.1 4.330159133

Prospective Approach
Po/E1 Avg Po/E1
2017 5.300642 5.416652723
2016 5.487952
2015 5.461365
Activity Turnover Ratio
petronet cairn HPCL IOCL
avg inventory in days 6.787645 avg inventory in days 17.10331 Activity Turnover Ratio Avg inventory in days 66.44918
Avg reveivables in days 170.0608 Avg reveivables in days 20.70597 avg inventory in days 35.17954 Avg reveivables in days 8.382142
Length of of operating cycle176.8485 Length of of operating cycle 37.80928 Avg reveivables in days 7.058346 Length of operating cycle 74.83132
avg payable in days 14.61007 avg payable in days 27.74034 Length of of operating cycle 42.23789 avg payable in days 31.88121
Length of Cash cycle 162.2384 Length of Cash cycle 10.06893 avg payable in days 20.88562 Length of Cash cycle 42.95011
Length of Cash cycle 21.35227
Liquidity ratio Liquidity Ratio Liquidity ratio
Current Ratio 2.266923 Current Ratio 1.091918 Liquidity ratio Current Ratio 0.855007
Quick Ratio 0.711215 Quick Ratio 0.444681 Current Ratio 0.947068 Quick Ratio 0.079143
Quick Ratio 0.117906
Solvency Ratio Solvency Ratio Solvency Ratio
Debt-Equity Ratio 1.933373 Debt-Equity Ratio 1.776474 Solvency Ratio Debt-Equity Ratio 4.285837
Interest Coverage Ratio 10.25776 Interest Coverage Ratio 10.28759 Debt-Equity Ratio 6.17764 Interest Coverage Ratio 6.639464
Interest Coverage Ratio 17.84092
Profitabilty Ratio Profitibility Ratio Profitabilty Ratio
Net Profit Ratio 0.033254 Net Profit Ratio 0.071797 Profitabilty Ratio Net Profit Ratio 0.033254
Return on Total Capital 1.95501 Return on Total Capital 1.489246 Net Profit Ratio 0.033254 Return on Total Capital 0.829974
ROE 76.70972 ROE 9.182091 Return on Total Capital 1.050924 ROE 6.225689
ROA 0.155508 ROA 0.175279 ROE 30.51396 ROA 0.176502
EPS 82.784 EPS 20.71135 ROA 0.243589 EPS 13.10056
EPS 61.094

From the above industry analysis taken for Oil and Gas industry in India, we can say that
average inventory in days is least for petronet which shows that petronet is in a better position
to use its inventory and turn it into cash.
From the above analysis we can say that IOCL has the least number of receivables in days,
hence showing that it is taking less time to recover its assets. Whereas, Petronet has the
highest number of days taken for receivables which shows that the company is taking a longer
time to recover its assets.
According to the above industry analysis for the year 2017, we can say that since the account
payable is the least for HPCL which shows that the HPCL is in better position in the market as
compared to other oil and gas companies.
From the above analysis we can say that petronet has the highest return on equity, which
shows that it’s able to generate more profits and distribute among its shareholders.
Also the current ratio of Petronet is the highest when we compare the above companies in the
analysis, it shows that the company is in better position to repay its short term debts.
When we see the Debt-Equity ratio we can say that HPCL has the highest Debt-Equity ratio
which shows that company is having more creditors risk as compared to Cairn India which has
the lowest Debt-Equity ratio. Low debt equity ratio shows that the company is financially
stable.

The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
company can pay interest on its outstanding debt.

From the above analysis we can say that HPCL has the highest interest coverage ratio of 17.84%
which shows that in a long run it has pay a higher interest as compared to other competitors.

From the profitability ratio we can say that since the petronet has the highest EPS, it has a
better performance as compared to other companies.

4.36 1088.372412 26,051.04


Total Revenue 24,962.67

EXPENSES
85.79579 22,350.70
Cost Of Materials Consumed 21,416.92
0.295882 77.08
Employee Benefit Expenses 73.86
0.839854 218.79
Finance Costs 209.65
Depreciation And Amortization 1.478488 385.16
Expenses 369.07
2.135108 556.22
Other Expenses 532.98
9.454878 23,587.95
Total Expenses 22,602.48
Profit/Loss Before Exceptional, 9.454878 2,463.09
Extraordinary Items And Tax 2,360.19