Gulf Oil Corporation Debt dropped on 56.9% while Revenue surged on 10.2%
30-05-2019 • About Gulf Oil Corporation (
$GULFOILCOR) • By InTwits
Gulf Oil Corporation reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- Gulf Oil Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹138m in FY2019, ₹206m in FY2018, ₹111m in FY2017, ₹87m in FY2016, ₹75m in FY2015
- The company has potentially unprofitable business model: ROIC is 2.0%
- It operates with high leverage: Net Debt/EBITDA is 5.2x while industry average is 27.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 10.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 1.6% to 2.9% in FY2019.
Net Income margin increased slightly on 0.56 pp from 7.1% to 7.6% in FY2019. During the last 5 years Net Income margin bottomed in FY2016 at 5.6% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 2.6%. Gulf Oil Corporation's CAPEX/Revenue increased slightly on 0.79 pp from 1.8% in FY2016 to 2.6% in FY2019. It's average level of CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low ROIC (2.0%) and ROE (4.6%). ROIC showed almost no change in FY2019. ROE showed almost no change in FY2019. ROIC stuck to a growing trend at 0.25 pp per annum in FY2015-FY2019.
Leverage (Debt)
Debt level is 5.2x Net Debt / EBITDA and 7.0x Debt / EBITDA. Net Debt / EBITDA dropped on 12.0x from 17.2x to 5.2x in FY2019. Debt dropped on 56.9% while cash surged on 12.4%. Net Debt/EBITDA followed a declining trend at -9.9x per annum in the last 5 years.
Gulf Oil Corporation has no short term refinancing risk: cash is higher than short term debt (144.4%).
Management team
Ravi Jain is a the company's CFO. Ravi Jain has spent 4 years at the company.
Financial and operational results
FY ended 31-03-2019
Gulf Oil Corporation ($GULFOILCOR) key annual financial indicators| mln. INR | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 3,901 | 4,842 | 4,986 | 4,827 | 5,321 | 10.2% |
| EBITDA | 320 | 282 | 295 | 271 | 320 | 18.0% |
| Net Income | 416 | 269 | 327 | 341 | 406 | 18.9% |
Balance Sheet
|
|---|
| Cash | 111 | 210 | 338 | 510 | 574 | 12.4% |
| Short Term Debt | 2,180 | 2,341 | 390 | 556 | 397 | -28.5% |
| Long Term Debt | 11,207 | 10,134 | 7,336 | 4,616 | 1,833 | -60.3% |
Cash flow
|
|---|
| Capex | 75 | 87 | 111 | 206 | 138 | -33.0% |
Ratios
|
|---|
| Revenue growth | -70.0% | 24.1% | 3.0% | -3.2% | 10.2% | |
| EBITDA growth | -26.0% | -11.8% | 4.4% | -8.1% | 18.0% | |
|
|---|
| EBITDA Margin | 8.2% | 5.8% | 5.9% | 5.6% | 6.0% | 0.4% |
| Net Income Margin | 10.7% | 5.6% | 6.5% | 7.1% | 7.6% | 0.6% |
| CAPEX, % of revenue | 1.9% | 1.8% | 2.2% | 4.3% | 2.6% | -1.7% |
|
|---|
| ROIC | 1.1% | 1.0% | 1.3% | 1.6% | 2.0% | 0.4% |
| ROE | 3.9% | 2.6% | 4.2% | 5.1% | 4.6% | -0.5% |
| Net Debt/EBITDA | 41.5x | 43.4x | 25.1x | 17.2x | 5.2x | -12.0x |
Gulf Oil Corporation ($GULFOILCOR) key quoterly financial indicators
| mln. INR | FY19Q1 | FY19Q2 | FY19Q3 | FY19Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1,331 | 1,008 | 1,442 | 1,540 | | - | - | - | - |
| EBITDA | 83 | 44 | 64 | 128 | | - | - | - | - |
| Net Income | 79 | 60 | 127 | 139 | | - | - | - | - |
Balance Sheet
|
|---|
Ratios
|
|---|
| EBITDA Margin | 6.2% | 4.4% | 4.4% | 8.3% | | - | - | - | - |
| Net Income Margin | 6.0% | 5.9% | 8.8% | 9.1% | | - | - | - | - |
Peers in Oil Marketing & Distribution
Below you can find Gulf 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.
