Indian Oil Corporation Debt dropped on 31.6% in 2015 and Revenue decreased on 8.0%
29-05-2015 • About Indian Oil Corporation (
$IOC) • By InTwits
Indian Oil Corporation reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Indian Oil Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 2.9%.
- CAPEX is quite volatile: 920 in FY2015, 1,890 in FY2014, 550 in FY2013, 1,300 in FY2012, 990 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Indian Oil Corporation ($IOC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,089,160 | 4,072,314 | 4,607,497 | 4,872,595 | 4,481,443 | -8.0% |
| EBITDA | 146,758 | 223,061 | 156,219 | 207,996 | 113,168 | -45.6% |
| Net Income | 78,307 | 42,260 | 44,490 | 70,856 | 49,120 | -30.7% |
Balance Sheet
|
|---|
| Cash | 15,222 | 7,774 | 11,703 | 36,587 | 11,799 | -67.8% |
| Short Term Debt | 404,203 | 617,049 | 648,836 | 590,507 | 280,970 | -52.4% |
| Long Term Debt | 173,425 | 183,104 | 247,875 | 358,652 | 367,959 | 2.6% |
Cash flow
|
|---|
| Capex | 137,164 | 170,184 | 127,995 | 218,243 | 131,973 | -39.5% |
Ratios
|
|---|
| Revenue growth | 23.5% | 31.8% | 13.1% | 5.8% | -8.0% | |
| EBITDA growth | -6.3% | 52.0% | -30.0% | 33.1% | -45.6% | |
| EBITDA Margin | 4.8% | 5.5% | 3.4% | 4.3% | 2.5% | -1.7% |
| Net Income Margin | 2.5% | 1.0% | 1.0% | 1.5% | 1.1% | -0.4% |
| CAPEX, % of revenue | 4.4% | 4.2% | 2.8% | 4.5% | 2.9% | -1.5% |
| ROIC | 8.2% | 12.7% | 6.4% | 8.7% | 3.9% | -4.8% |
| ROE | 14.2% | 7.2% | 7.2% | 10.8% | 7.2% | -3.6% |
| Net Debt/EBITDA | 3.8x | 3.6x | 5.7x | 4.4x | 5.6x | 1.2x |
Revenue and profitability
Indian Oil Corporation's Revenue decreased on 8.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 4.3% to 2.5% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Indian Oil Corporation had CAPEX/Revenue of 2.9%. Indian Oil Corporation's CAPEX/Revenue decreased slightly on 1.2 pp from 4.2% in FY2012 to 2.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.4%.Battling declining revenue the company made large investments to CAPEX (117% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (3.91%) and ROE (7.18%). ROIC decreased on 4.8 pp from 8.7% to 3.9% in FY2015. ROE decreased on 3.6 pp from 10.8% to 7.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.6x and Debt / EBITDA is 5.7x. Net Debt / EBITDA jumped on 1.2x from 4.4x to 5.6x in FY2015. Debt dropped on 31.6% in FY2015 while cash dropped on 67.8% in FY2015.
Appendix 1: Peers in Oil Marketing & Distribution
Below you can find Indian Oil Corporation benchmarking vs. other companies in Oil Marketing & Distribution industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eastern Gases ($EASTERNGAS) | -65.7% | 51.5% | 54.1% | 8.5% | |
| Gulf Oil Corporation ($GULFOILCOR) | | 12.0% | 2.3% | 3.0% | -70.0% |
| Sah Petroleums ($SAHPETRO) | | 31.3% | -13.1% | -3.3% | 0.9% |
| |
|---|
| Median (3 companies) | -65.7% | 31.3% | 2.3% | 3.0% | -34.6% |
|---|
| Indian Oil Corporation ($IOC) | | 31.8% | 13.1% | 5.8% | -8.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | 5.9% | 5.5% | 1.8% | 3.3% | 8.2% |
| Sah Petroleums ($SAHPETRO) | 5.4% | 5.7% | 3.5% | 3.8% | 3.5% |
| |
|---|
| Median (2 companies) | 5.4% | 5.5% | 2.9% | 3.6% | 5.8% |
|---|
| Indian Oil Corporation ($IOC) | 4.8% | 5.5% | 3.4% | 4.3% | 2.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sah Petroleums ($SAHPETRO) | 1.1% | 0.4% | 0.2% | 0.2% | 3.9% |
| Gulf Oil Corporation ($GULFOILCOR) | 1.0% | 0.9% | 1.0% | 4.1% | 1.9% |
| |
|---|
| Median (2 companies) | 1.0% | 0.9% | 0.6% | 2.2% | 2.9% |
|---|
| Indian Oil Corporation ($IOC) | 4.4% | 4.2% | 2.8% | 4.5% | 2.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sah Petroleums ($SAHPETRO) | 10.5% | 20.0% | 10.0% | 10.9% | 7.5% |
| Gulf Oil Corporation ($GULFOILCOR) | 6.1% | 4.5% | 0.2% | 0.9% | 1.1% |
| Eastern Gases ($EASTERNGAS) | 13.4% | 15.4% | 15.1% | | |
| |
|---|
| Median (3 companies) | 10.5% | 15.4% | 10.0% | 5.9% | 4.3% |
|---|
| Indian Oil Corporation ($IOC) | 8.2% | 12.7% | 6.4% | 8.7% | 3.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gulf Oil Corporation ($GULFOILCOR) | 3.0x | 4.1x | 87.8x | 32.5x | 41.5x |
| Sah Petroleums ($SAHPETRO) | -0.7x | -0.5x | -0.8x | -1.0x | 1.9x |
| |
|---|
| Median (2 companies) | 3.0x | 2.3x | 2.9x | 15.7x | 21.7x |
|---|
| Indian Oil Corporation ($IOC) | 3.8x | 3.6x | 5.7x | 4.4x | 5.6x |
