MMS PROGRAMME, BATCH 2022-24

SUMMER INTERNSHIP PROJECT REGISTRATION FORM

Name of the candidate MHATRE KARAN MADHUKAR

1

2 Name of the Programme MMS

Specialization-FINANCE
3 Address for Correspondence RADHABAI MHATRE HOUSE,
EKSAR ROAD, EKSAR
TALEPAKHADI, BORIVALI(w),
MUMBAI NO -400092
4 Mobile No.: 9820546502

5 Name of the Organization of Summer INFINITE FINANCIAL

EXPERTS
Internship
Details of Reporting Officer Name: MR. SUNNY MONDAL
Designation: Company Head
[email protected]
Email:
6
Mobile No:
970250687

Details of Supervisor Name: PROF. KETAN SUTARIA

7 Designation: Assistant Professor

8 Proposed Title of the Project VALUATION USING

FUNDAMENTAL ANALYSIS OF
OIL & GAS SECTOR

Date: ________

Place: MALAD

Signature of Student:

Signature of Faculty Mentor:

I
 Summer Internship Project on

Valuation Using Fundamental Analysis of Oil & Gas Sector

Submitted for the partial fulfilment of the requirement of the degree
of

MASTER IN MANAGEMENT STUDIES

(MMS)

AFFILIATED TO UNIVERSITY OF MUMBAI

SUBMITTED BY

MHATRE KARAN MADHUKAR

ROLL NO. B-09

Specialization: FINANCE

Under the Guidance of

PROF. KETAN SUTARIA

MALAD-MARVE ROAD, CHARKOP NAKA,

MALAD (WEST), MUMBAI-400095.

AUGUST, 2023

II
 DECLARATION BY THE CANDIDATE

I KARAN . M . MHATRE hereby certifies that the work which is being presented in this summer
internship project Report entitled- “VALUATION USING FUNDAMENTAL ANALYSIS OF OIL
& GAS SECTOR” is in partial fulfilment of the requirement for the award of the Degree of Masters in
Management Studies and submitted to the Atharva Institute of Management Studies Mumbai, is an
authentic record of my own work carried out during a period from 2nd MAY 2023 till 10th JULY 2023
at under the guidance of PROF. KETAN SUTARIA

The matter presented in this project report has not been submitted by me for the award of any other
degree at this or any other Institute. Wherever references have been made to intellectual properties of
any individual / Institution / Government / Private / Public Bodies / Universities, research paper,
textbooks, reference books, research monographs, archives of newspapers, corporate, individuals,
business / Government, and any other source of intellectual properties viz., speeches, quotations,
conference proceedings, extracts from the website, working paper, seminal work et al, they have been
clearly indicated, duly acknowledged and included in the Bibliography.

NAME OF THE STUDENT: KARAN MADHUKAR MHATRE

Signature of the Student:

This is to certify that the above statement made by the candidate is correct to the best of our Knowledge.

Signature of Faculty Mentor:

Name of Faculty Mentor: PROF. KETAN SUTARIA

III
 CERTIFICATE

This is to certify that MR. KARAN MADHUKAR MHATRE is a bonafide student of the two
year full-time Masters in management Studies (MMS), Finance, and Roll No. B-09 of the institute.

The student has carried out the Summer Internship Project VALUATION USING FUNDAMENTAL
ANALYSIS OF OIL & GAS SECTOR at INFINITE FINANCIAL EXPERTS during the period from May
02, 2023 to July 10, 2023 under my guidance in partial fulfilment of requirement for the completion MMS.
This Summer Internship Project Report is the record of authentic work carried out by him during the period
from 2nd May to 10th July.

Name &Signature Name & Signature

Prof. Ketan Sutaria Dr. D. Henry Babu

(Faculty mentor) (Director)

Place: Malad

Date:

IV
Internship Completion Certificate

V
 Acknowledgment

I take this opportunity to express my sincere thanks to “INFINITE FINANCIAL

EXPERTS” for providing a platform to gain knowledge in the financial modelling and
valuation of companies. Working with the organizations was a great learning
experience.

The Summer Internship Project on “VALUATION USING FUNDAMENTAL ANALYSIS OF

OIL & GAS SECTOR” offered a great learning experience. During the tenure of this
internship, I was fortunate to have interacted with people, who in their own capacities
have encouraged and guided me.

My sincere thanks go to Mr. Sunny Mondal (Company Head), my Company Guide

for giving me an opportunity to be a part of this esteemed organization for two months
and providing me opportunities and understanding my potential.

Special thanks to Prof. Ketan Sutaria for his regular guidance all through the project
which constantly inspired me to think beyond the obvious. Without his support &
critical evaluation, this project could not have been completed successfully.

And also take this opportunity to thank to all at Infinite Financial Experts. Employee
and Branch Head of Malad Branch for providing us space and helped us in during our
training.

I thank atharva institute of management studies for giving me this opportunity to work
with such a nice organization and develop my understanding about equities and
financial market.

VI
 MMS PROGRAMME, AY 2022-2023
SUMMER INTERNSHIP PROJECT SUBMISSION

Received two copies of Hard Bound Book and Softcopy of the Summer Internship Project

Report and two copies of Synopsis MR KARAN MADHUKAR MHATRE Roll no 09

Specialization FINANCE in Partial fulfilment of the requirement for the completion o f MMS as prescribed
by the All India Council of Technology (AICTE).

PROJECT TITLED: VALUATION USING FUNDAMENTAL ANALYSIS OF OIL & GAS SECTOR

Name of the Organization: INFINITE FINANCIAL EXPERTS

Duration: From – 2nd MAY 2023 To 10th JULY 2023

Name of Faculty Mentor: PROF. KETAN SUTARIA
Place: Malad

Date:

RECEIVER’S SIGNATURE:

Receivers Name:

VII
 CONTENTS

Chapter
Details Page No.
No.
Executive Summary IX
1 INTRODUCTION 1-5
1.1 Background 2
Need and Significance of the Study 2
1.2
Nature and Scope for the Study 2
1.3
1.4 Research Problem 3
Aims and Objectives of Study 3
1.5
1.6 About the Company 4
2 LITERATURE REVIEW 6-8
2.1 About the Industry 6
Investment and recent development 6
2.2
Literature review related to topic 7
2.3
RESEARCH
3 9-10
METHODOLOGY
3.1 Problem Identification 9
3.2 Methodology Adopted 10
3.3 Data Collection Methods 10
Data Analysis Tools and Techniques 10
3.4
DATA DESCRIPTION & ANALYSIS
4 11-36
4.1 Financial Statement 11
4.2 Common size Analysis 14
4.3 Comparative Analysis 16
4.4 Trend Analysis 18
4.5 Beta 20
4.6 WACC 21
4.7 Financial Terms 22
4.8 Financial Ratios 23
4.9 Working Capital Schedule 24
4.10 Asset Schedule 25
4.11 Debt Schedule 26
4.12 DCF Valuation 27
4.13 Peer Ratio 28

5 FINDING & CONCLUSION 37-40

5.1 Findings & Conclusions 37
5.2 Learning Outcomes 39
5.3 Strength of Study 40
5.4 Limitations of Study 41
BIBLIOGRAPHY & REFERENCES 42

VIII
Executive Summary
Valuation of the oil & gas sector involves estimating the value of companies involved in the
exploration, production, refining and distribution of oil & gas resources. Fundamental analysis plays
a crucial role in this process by focusing on underlying financial and operational metrics to determine
a company's intrinsic value. This summary provides an overview of the key factors and considerations
when valuing oil & gas companies using fundamental analysis.

The oil & gas sector is characterized by sensitivity to commodity prices, geopolitical factors,
technological developments and environmental regulations. The valuation of this sector is often
influenced by oil & gas price volatility, supply and demand dynamics, exploration success and
macroeconomic conditions.

Fundamental analysis includes an evaluation of the company's financial statements, industry position,
growth prospects and competitive situation. The most important financial statements to evaluate
include the income statement, balance sheet, and cash flow statement. The valuation is based on cash
flow analysis, which often uses discounted cash flow (DCF) methods. This means forecasting future
cash flows and discounting them to present value using an appropriate discount rate. This study
compares 5 similar companies to find out which is the best company to invest money in.

The volatile nature of the oil & gas industry underscores the importance of sensitivity analysis. From
a risk assessment perspective, it is important to assess how changes in assumptions such as
commodity prices, production rates and discount rates affect asset value results. In general, valuation
of oil & gas companies requires a deep understanding of the complexities of the industry, market
trends, technological developments and geopolitical implications. The use of fundamental analysis
techniques covering inventory, production, costs, cash flow and risk assessments is key to accurate
and insightful valuations in this complex and evolving industry. Regular updates and sensitivity
assessments are necessary to effectively manage the volatility and uncertainty inherent in the sector.

IX
LIST OF ABBREVATIONS

FA Fundamental Analysis
DCF Discounted Cash Flow
(P/E) ratio Price-to-earnings
(P/B) ratio Price-to-book
LLP Limited Liability Partnership
HR Human resource
FDI Foreign direct investment
BCM Business of Continuity Management
CBG Compressed Biogas
SATAT Sustainable Alternative Towards Affordable Transportation
ROS Return on Sales
ROA Return on Assets
ROE Return on Equity
ROI Return on Investment
NSE National Stock Exchange of India Ltd
BSE Bombay Stock Exchange
WACC Weighted Average Cost of Capital WACC
EBITDA Earnings Before Interest, Taxes, Depreciation, and Amortization
EBIT Earnings Before Interest and Taxes
DPS Dividends Per Share
EPS Earnings Per Share
COGS Cost of Goods Sold
ROA Return on Assets
ROE Return on Equity
ROCE Return on Capital Employed
CAGR Compound Annual Growth Rate

X
LIST OF FIGURES

LIST OF FIGURES
Figure no. Content Page no

1 Company logo 5
2 Consolidated Balance Sheet 11
3 Consolidated statement of profit and loss 12
4 Consolidated Cash Flow statement 13
5 Balance Sheet Common size analysis 14
6 Profit and loss common size analysis 15
7 Balance Sheet Comparative Analysis 16
8 Profit and loss Comparative Analysis 17
9 Balance Sheet Trend analysis 18
10 Profit and Loss Trend Analysis 19
11 Beta 20
12 WACC Statement 21
13 Financial Terms 22
14 Financial Ratio 23
15 Working Capital Schedule 24
16 Asset Schedule 25
17 Debt Schedule 26
18 DCF Valuation 27
19 Consolidated Ranks 36

XI
LIST OF Table

LIST OF Table
Table no Content Page no
1 Market Capitalization 28
2 Asset Turnover Ratio 29
3 Current Ratio 29
4 D/E Ratio 30
5 Interest Coverage Ratio 31
6 Return on Assets 32
7 Return on Equity 32
8 Return on Capital Employed 33
9 Price-to-Earnings Ratio 34
10 Price-to-Book Value 35

LIST OF Graph

LIST OF Graph
Table no Content Page no
1 Market Capitalization 28
2 Asset Turnover Ratio 29
3 Current Ratio 30
4 D/E Ratio 30
5 Interest Coverage Ratio 31
6 Return on Assets 32
7 Return on Equity 33
8 Return on Capital Employed 33
9 Price-to-Earnings Ratio 34
10 Price-to-Book Value 35

XII
CHAPTER 1. INTRODUCTION
What Is Valuation?

The process of determining the worth or economic value of an item, firm, investment, or financial
instrument is known as valuation. It is a necessary component of financial, investing, and business
decision-making. Valuation is used for a variety of purposes, including buying and selling assets,
making investment decisions, financial reporting, mergers and acquisitions, and evaluating the worth
of a company's stock.

What Is a Business Valuation?

A business valuation, often known as a company valuation, is the process of estimating a firm's
economic value. During the valuation process, all aspects of a corporation are examined to evaluate
its value as well as the value of its departments or units.

A company valuation can be used to evaluate the fair value of a corporation for a variety of purposes,
including determining selling value, establishing partner ownership, taxation, and even divorce
processes. Owners frequently seek objective estimates of the value of their businesses from
professional business assessors.

What Is Fundamental Analysis?

Fundamental analysis (FA) examines the economic and financial elements linked with an investment
to determine its fundamental worth. The intrinsic value of an investment is determined by the
financial state of the issuing company as well as current market and economic conditions.

Fundamental analysts study everything that can affect the value of a security, from macroeconomic
factors such as the state of the economy and industry conditions to microeconomic factors such as
the effectiveness of corporate management.

The end goal is to arrive at a number that an investor may compare to the current price of the
investment to evaluate if it is undervalued or overpriced by other investors.

1
1.1 BACKGROUND OF THE STUDY

A fundamental analysis study to determine the value of oil & gas enterprises entails an in-depth
examination of the economic, operational, and industry-related aspects that influence their worth.
Given the industry's sensitivity to geopolitical changes, technological advances and regulatory
changes, such analysis is critical for investors and decision makers. This study includes an
examination of financial statements, industry trends, macroeconomic indicators, market dynamics,
regulatory compliance and environmental aspects. Valuation techniques such as discounted cash flow
analysis and scenario modelling are used to determine intrinsic value and assess industry-specific
risks. Together, this study provides an in-depth look at the financial performance, market conditions
and associated risks of oil & gas companies.

1.2 NEED AND SIGNIFICANCE OF THE STUDY

Oil & gas are the main industries in the energy market and play an influential role in the world
economy as the world's main sources of fuel. Oil & gas production and distribution processes and
systems are highly complex, capital intensive and require advanced technology. As the demand of oil
& gas is high, this study helps to know the value of oil & gas companies.

1.3 NATURE AND SCOPE OF THE STUDY

This usually requires studying the financial and operational aspects of companies operating in the
industry. This research aims to estimate the true value of oil & gas firms by examining the different
aspects that can affect their operations and profitability. Here are some of the main considerations
that are usually taken into account:

1. Industry Overview: The study begins with an overview of the oil & gas sector, including its
global footprint, key players, market dynamics and key trends. This analysis helps provide
context and understanding of the broader industry landscape.
2. Company Selection: The study involves selecting specific oil & gas companies for analysis.
This selection process can be based on a number of criteria such as market capitalization,
geographic location, production capacity or other related factors.
3. Financial analysis: A comprehensive financial analysis is carried out to assess the financial
situation and performance of the selected companies. This includes reviewing financial
statements, profitability, liquidity ratios, accounts payable and other financial indicators. It
helps evaluate a company's past financial performance, identify trends and assess its ability
to generate profits and cash flows.

2
 4. Fundamental Analysis: Fundamental analysis involves evaluating the qualitative and
quantitative factors that can affect the value of a company. This includes analysing the
company's business model, competitive position, management, growth prospects, research
and production activities, inventories, technology adoption and regulatory environment. The
goal is to understand the long-term sustainability and growth potential of the company.
5. Valuation Methods: To assess the genuine value of oil & gas enterprises under inquiry, many
valuation methodologies are applied. These may include discounted cash flow (DCF)
analysis, comparable company analysis, price-to-earnings (P/E) ratio analysis, price-to-book
(P/B) ratio analysis, or other industry-specific valuation methods. These methods help
estimate the fair value of companies and assess whether they are overvalued or undervalued
in the market.

1.4 RESEARCH PROBLEM

Oil & gas prices fluctuate significantly due to a number of factors, including geopolitical events,
supply and demand imbalances, and economic conditions. This volatility can make it difficult to
accurately predict future cash flows and provide a reliable valuation for oil & gas companies.

Estimating oil & gas reserves is a critical aspect of valuing companies in the industry. However,
inventory estimates can be uncertain and may be revised as new information becomes available.

Valuation of oil & gas companies involves evaluating project finances and cost structures. Factors
such as production costs, capital costs and operating costs must be considered. Accurately estimating
future costs and understanding cost dynamics between different projects can be difficult, especially
given the broad operating environment of the oil & gas industry.

1.5 AIMS AND OBJECTIVES OF THE STUDY

The study has undertaken with the following objectives:

 To assess Financial Performance of the companies.

 To evaluate Growth Prospects of the companies.
 To comprehend the organizations' competitive positions.
 To help the investors in the decision-making process.
 To check the growth of the oil & gas sector in the Indian market
 To check the selected company's performance based on historical data.

3
1.6 ABOUT THE COMPANY

Infinite Financial Experts

Infinite Financial Experts is a subsidiary of Shree Deepraj Insight LLP which focuses on creating
and publishing financial reports related to Equity, Mutual Funds, Bonds, and Other Financial
Instruments.

Shree Deepraj Insight LLP is a limited liability partnership company started on 1st Nov, 2019 and
registered on 15th May, 2021. Initially it was run as a Sole Proprietor but later the company was
formed under the Registrar of Companies.

The Main Directors of the Company are:

1. Mrs. Deepa Mondal

2. Mrs. Mayuri Mondal
3. Mr. Sunny Mondal – Company Head - Managing the Operations of the company.

Shree Deepraj Insight LLP has various brands under one roof:

• Infinite Classes: Education Institute providing educational services across various other streams
from commerce to arts.
• Infinite HR Clan: Human Resource recruiting agency helping students to get good jobs in
corporate.
• SN Financial Services: Financial Services and Taxation Services are provided to individuals and
corporate
• Infinite Financial Experts: Financial Reports and Financial Data Analysis are the main mottoes of
the firm.
• Sparklesque: It is an online e-commerce brand into luxury and non-luxury accessories.
• Finowledge Insight: It is a YouTube channel providing financial knowledge to students.
• Infinite Marketing Solutions: Providing marketing solutions to various sectors and helping them
build their digital marketing presence.
• Infinite Edu-Consultancy: Helping students get a road map for their career and also helping them
in abroad courses and colleges.

4
 Figure 1 – Company logo

Our Mission and Vision

Mission- To be one of the leading service providers in the field of Finance, HR, Marketing and
Education and to accelerate the company that inspires and fulfils your curiosity.

Vision- To make our services reachable to every individual and create a better everyday life for
many people.

5
CHAPTER 2. LITERATURE REVIEW

2.1 ABOUT THE INDUSTRY

The oil & gas sector is one of India's eight key industries, and it plays a critical role in all other
important economic sectors.

Because India's economic growth is strongly connected to energy demand, demand for oil & gas is
expected to rise, making the industry attractive for investment. In 2022, India will remain the world's
third largest oil consumer.

To address the rising demand, the government has developed a number of initiatives. This allowed
for 100% FDI in numerous industries, including natural gas, petroleum products, and refineries. The
FDI limit for public sector refining projects has been raised to 49% without investment or dilution of
domestic capital in existing PSUs. Today, it attracts both domestic and foreign investment as
evidenced by the presence of companies such as Reliance Industries Ltd (RIL) and Cairn India. By
2022, the industry is estimated to draw US$25 billion in exploration and production investment. India
is already a refining hub with 23 refineries and there are plans to expand foreign investment in export-
oriented infrastructure, including product pipelines and export terminals.

2.2 INVESTMENT AND RECENT DEVELOPMENTS

 Oil demand in India is likely to rise by 40% to 6.7 mb/d in 2030 and 8.3 mb/d in 2050 to 4.7
mb/d in 2021.
 India's gas demand is expected to almost double to 115 bcm by 2030 and 170 bcm by 2050.
 As of April 2022, India's estimated oil reserves were 651.77 million tonnes and 1138.67
billion cubic meters of natural gas.
 India has set a target to increase the share of natural gas in the energy segment by 2030 from
the current 6.7 percent to 15 percent.
 The total number of fuel stores increased from 45,104 (2012) to 83,027 (2022). This number
increased to 86,216 by March 1, 2023.
 A total of 88% of the country's geographical area, which covers 98% of the population, is
approved for the development of the city's gas distribution network.
 India increased ethanol blending with gasoline from 1.53 percent in 2013-14 to 10.17 percent
in 2022 and increased its gasoline ethanol blending target to 20 percent in 2030-2025-26.

6
 Additionally, the ethanol-to-gasoline blend was 12.0% in February 2023, and the cumulative
ethanol blend from December 2022 to February 2023 was 11.4%.

 Aims to set up 12 commercial scale 2G bioethanol projects under Pradhan Mantri Ji-VAN
Yojana with a maximum viability of INR 150 per project.

 The goal is to establish 5000 compressed biogas (CBG) units under SATAT (Sustainable
Alternative Towards Affordable Transportation) system. In this regard, 4215 LOI certificates
were issued on 01.03.2023. The Government of India provides financial assistance to biogas
plants under the Waste to Energy program.

2.3 LITERATURE REVIEW

 Simamora, 2000 The financial ratio is the most used method to analyse financial statements.
The financial ratio combines various estimates in financial statements, therefore the financial
position and operating results of the company can be interpreted. The ratio is a useful guide
for evaluating the financial condition and operations of a company, as well as for comparing
the results of previous years or other companies.
 Brigham and Houston, (2001) The revised model was a powerful tool to illustrate the
relationship between a company's income statement and balance sheet and to develop simple
strategies to improve a company's ROE.
 Wild et al., 2005 The financial ratio can also be used to determine irregularities in the
implementation of the company's core activities, comparing the financial ratio with the
equivalent of previous years.
 Sawir, 2005 The activity ratio measures the efficiency of the company in using financial
resources. The total turnover ratio describes the efficiency of using all the characteristics of
the company to increase sales or describe how much turnover can be obtained with the money
invested in the assets of the company.
 Debasish Sur and Kaushik Chakraborty (2006) in his study Financial Performance of
Indian Pharmaceutical Industry: The Indian pharmaceutical industry has played a very
important role in increasing life expectancy and reducing mortality. It is the fifth largest and
14th most valuable in the world. A comparative analysis of the economic development of the
Indian pharmaceutical industry in the period 1993-2002 by selecting six major companies in
the industry. The comparison was made in almost all aspects of the financial performance
with corresponding statistical tools.

7
 Fernández (2007), compares the correlation coefficients of debt growth with asset growth as
measured by book value and market value using data from US firms. He states that the mean
and median of the book value correlation coefficients are larger (and have a smaller standard
deviation) when measured by book value than when measured by market value.
 R. Thorpe, J. Holloway, 2008 The financial goals of a for-profit company primarily concern
the needs of external debt and equity providers. Shareholders' financial income consists of
dividends and capital gains from the market value of their shares. Since earnings determine
what dividends can be paid in the long run, shareholders are primarily concerned with
financial measures such as earnings, ROS, ROA, ROE, ROI.
 Brigham and Houston, 2012 Value Ratio measures a company's ability to create value for
the public (investors) or shareholders. This ratio shows how much value investors can provide
to a company that is greater than the book value of the stock. The price-earnings ratio (PER)
indicates the amount an investor is willing to pay for each reported profit.

8
CHAPTER 3. RESEARCH METHODOLOGY

3.1 PROBLEM IDENTIFICATION

Basic financial statements are used in the securities analysis: balance sheet, profit and loss account,
cash flow statement and appendices to the annual financial statements. These financial statements are
the main source of information for investors, creditors, suppliers, etc. It is important to always
remember that people who write financial statements always want to achieve an attractive appearance
in order to win the trust of creditors, investors and investors. suppliers and all others who directly or
indirectly do business with the company. Extra caution is always a good idea. When talking about
economic indicators, it is important to choose a peer group. Peer group analysis means determining
a benchmark, but first it is important to choose companies that are in the same business (that compete
in the same market, have similar assets and operate similarly).

Liquidity indicators measure the company's ability to meet its short-term obligations. Liquidity
indicators show the ability of companies to avoid insolvency. Financial debt ratios measure how much
is borrowed from external sources. Financial debt ratios show how many assets are financed by equity
and how much by debt. Profitability ratios indicate the financial efficiency or capacity of a company's
business operations or the probability that an investment will achieve a better return on invested
capital after the introduction of new capacity, or that an investment will provide a better financial
result with a smaller investment. Asset turnover rates measure how efficiently a company is using its
resources. They show the transfer of funds in the business process. Market value ratios measure a
company's financial position in the market. The P/E ratio shows how many times the market price of
a stock is greater than the stock's return. Many analysts believe that stocks with low P/E ratios find
investors ahead of stocks with high P/E ratios. Stocks with high P/E ratios can be more affordable
than stocks with low P/E ratios if they expect earnings and dividend growth. EPS calculates individual
earnings per share. The P/B ratio (also known as the market-to-book ratio) is calculated by dividing
the market price of a stock by the book price of the stock. Some analysts believe that the price of the
book may set a limit below which the market price cannot fall.

9
3.2 METHODOLOGY ADAPTED

Information on the movement of stock prices and financial data of oil & gas businesses listed on the
NSE, BSE, money control and company official site is used as the major source of understanding for
valuation. The information was gathered from secondary sources.

The closing share prices are used to project future price fluctuations, which are then examined using
a variety of methods. Valuation is done through analysing various statement of the company.

3.3 DATA COLLECTION METHOD

Source of data: Data is collected from the primary data and secondary data

Primary Data: primary data means which is collected personally and through observations, for this
project, there is no primary data

Secondary data: The data which is represented already.

The present study is based on Secondary Data Research Design. The various source of secondary data
includes –

 Internet
 NSE
 BSE
 Money Control

3.4 DATA ANALYSIS TOOLS AND TECHNIQUES

The research conducted in this project is analytical in nature which is done through analysing financial
statements and stock trends of different large cap oil & gas companies. Namely

 Aegis Logistic Limited

 Indian oil corporation
 Bharat petroleum
 Hindustan Petroleum Corp
 ONGC

10
CHAPTER 4. DATA DESCRIPTION AND INTERPRETATION

4.1 Financial Statements

Aegis Logistics Ltd.'s Consolidated Balance Sheet shows the company's assets, liabilities, and
equity for several years, as well as estimates for the future. The assets are divided into non-current
and current assets, which include property, plant, and equipment, investments, and financial assets.
Borrowings, provisions, and other financial liabilities are classified as non-current liabilities and
current liabilities. The section on equity contains equity share capital, other equity, and a non-
controlling interest. The financial ratios presented provide information about the company's
investment, debt management, and interest expense. These numbers and projections provide an
overview of Aegis Logistics' financial condition and performance.

Aegis Logistics Ltd

Consolidated Balance Sheet
In Lakhs Actual Forcasted
Pariculars 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Assets
Non current assets
Property, plant and equipment 1,27,983.96 1,32,649.84 1,69,659.16 1,70,886.68 2,37,396.41 3,15,847.74 4,09,989.34 5,22,959.26 6,58,523.17 8,21,199.85
Capital work-in-progress 12,558.44 12,066.38 22,011.45 48,758.19 25,253.48
Goodwill 125.47 125.47 125.47 125.47 125.47 125.47 125.47 125.47 125.47 125.47
Other intangible assets 128.6 99.42 86.18 59.9 58.78 58.78 58.78 58.78 58.78 58.78
Financial assets
i. Investments 2.22 1.11 1.11 1.11 1.11 1.11 1.11 1.11 1.11 1.11
ii. Loan to Employees - - - 15,123.97 - - - - - -
iii. Others -Security deposits 899.39 1,264.63 1,270.33 1,413.02 1,856.87 1,856.87 1,856.87 1,856.87 1,856.87 1,856.87
Income tax assets (net) 1,530.13 2,171.53 2,589.33 3,549.81 3,583.22 3,583.22 3,583.22 3,583.22 3,583.22 3,583.22
Deferred tax assets (net) 6,495.43 9,535.80 4,732.43 4,019.22 7,549.64 7,549.64 7,549.64 7,549.64 7,549.64 7,549.64
Other non current assets 8,971.76 9,117.12 1,603.64 4,102.81 9,250.43 9,250.43 9,250.43 9,250.43 9,250.43 9,250.43
Total non current assets 1,58,695.40 1,67,031.30 2,02,079.10 2,48,040.18 2,85,075.41 3,38,273.26 4,32,414.86 5,45,384.78 6,80,948.69 8,43,625.37
Current assets
Inventories 2,599.81 3,379.94 4,211.01 5,238.80 9,064.06 9,211.51 11,053.81 13,264.57 15,917.48 19,100.98
Financial assets
i. Trade receivables 34,694.28 22,852.23 45,403.14 9,415.35 73,834.26 50,663.29 60,795.94 72,955.13 87,546.16 1,05,055.39
ii. Cash and cash equivalents 9,492.26 35,341.00 22,247.47 29,682.76 9,420.10 -59,742.26 -1,47,317.25 -2,52,093.44 -3,77,511.07 -5,27,698.43
iii. Bank balance other than (ii) above 6,706.29 5,951.28 4,096.74 3,880.08 5,598.13 5,598.13 5,598.13 5,598.13 5,598.13 5,598.13
iv. Other financial assets 960.99 753.29 6,466.71 3,228.70 4,064.29 4,482.93 5,379.52 6,455.42 7,746.51 9,295.81
v. Investments - 1,042.85 729.81 - - - - - - -
Other current assets 8,244.35 6,516.08 6,836.19 8,729.33 16,357.76 19,612.83 23,535.40 28,242.48 33,890.98 40,669.17
Total current assets 62,697.98 75,836.67 89,991.07 60,175.02 1,18,338.60 29,826.43 -40,954.45 -1,25,577.71 -2,26,811.81 -3,47,978.95
Total assets 2,21,393.38 2,42,867.97 2,92,070.17 3,08,215.20 4,03,414.01 3,68,099.69 3,91,460.41 4,19,807.08 4,54,136.87 4,95,646.42
Equity and liabilities
Equity
Equity share capital 3,340.45 3,340.45 3,397.12 3,510.45 3,510.45 3,510.45 3,510.45 3,510.45 3,510.45 3,510.45
Other equity 1,17,387.44 1,35,787.25 1,62,064.20 1,90,136.94 2,14,469.42 1,92,080.09 1,96,192.81 2,01,393.12 2,07,898.53 2,15,970.08
Equity attributable to owners of the Company 1,20,727.89 1,39,127.70 1,65,461.32 1,93,647.39 2,17,979.87 1,95,590.54 1,99,703.26 2,04,903.57 2,11,408.98 2,19,480.53
Non Controlling Interest 6,970.09 7,481.24 9,060.22 10,902.45 8,258.65 16,581.77 26,618.26 38,710.81 53,270.62 70,791.14
Total equity 1,27,697.98 1,46,608.94 1,74,521.54 2,04,549.84 2,26,238.52 2,12,172.31 2,26,321.52 2,43,614.38 2,64,679.60 2,90,271.67
Liabilities
Non-current liabilities
Financial liabilities
i. Borrowings 6,195.83 5,656.98 4,850.00 11,231.97 6,427.55 6,427.55 6,427.55 6,427.55 6,427.55 6,427.55
ii. Lease Liability - - - - 41,269.13 41,269.13 41,269.13 41,269.13 41,269.13 41,269.13
iii. Other financial liabilities 1,339.21 2,046.03 31,645.66 32,405.64 3,897.42 3,897.42 3,897.42 3,897.42 3,897.42 3,897.42
Provisions 1,056.74 1,169.09 1,390.62 1,264.00 1,488.31 1,488.31 1,488.31 1,488.31 1,488.31 1,488.31
Deferred tax liabilities (net) - 3,089.97 8,090.87 7,302.22 7,302.22 7,302.22 7,302.22 7,302.22 7,302.22
Other non-current liabilities 192.01 157.62 132.22 112.02 92.19 92.19 92.19 92.19 92.19 92.19
Total non-current liabilities 8,783.79 9,029.72 41,108.47 53,104.50 60,476.82 60,476.82 60,476.82 60,476.82 60,476.82 60,476.82
Current liabilities
Financial liabilities
i. Borrowings 22,046.86 12,995.42 16,704.70 23,071.08 31,840.61 31,840.61 31,840.61 31,840.61 31,840.61 31,840.61
ii. Lease Liability - - 3,993.15 3,993.15 3,993.15 3,993.15 3,993.15 3,993.15
iii. Trade payables
Total outstanding dues of creditors of micro
enterprises and small enterprises - 40,154.85 35.53 163.07 163.07 163.07 163.07 163.07 163.07
Total outstanding dues of creditors other than
micro enterprises and small enterprises 37,883.67 48,533.20 13,826.95 7,431.47 67,305.64 46,057.53 55,269.04 66,322.85 79,587.42 95,504.90
iv. Other financial liabilities 14,207.49 12,538.33 3,702.51 15,132.23 4,132.71 4,132.71 4,132.71 4,132.71 4,132.71 4,132.71
Other current liabilities 2,723.03 2,652.11 - 4,056.64 3,892.07 3,892.07 3,892.07 3,892.07 3,892.07 3,892.07
Provisions 290.89 289.59 401.6 315.99 504.39 504.39 504.39 504.39 504.39 504.39
Deferred tax liabilities (net) 7,045.14 8,344.41 - - - - - - - -
Current tax liabilities (net) 714.53 1,876.25 1,649.55 517.92 4,867.03 4,867.03 4,867.03 4,867.03 4,867.03 4,867.03
Total current liabilities 84,911.61 87,229.31 76,440.16 50,560.86 1,16,698.67 95,450.56 1,04,662.07 1,15,715.88 1,28,980.45 1,44,897.93
Total liabilities 93,695.40 96,259.03 1,17,548.63 1,03,665.36 1,77,175.49 1,55,927.38 1,65,138.89 1,76,192.70 1,89,457.27 2,05,374.75
Total equity and liabilities 2,21,393.38 2,42,867.97 2,92,070.17 3,08,215.20 4,03,414.01 3,68,099.69 3,91,460.41 4,19,807.08 4,54,136.87 4,95,646.42

Assumptions
Opening Net Fixed Assets 2,37,396.41 3,15,847.74 4,09,989.34 5,22,959.26 6,58,523.17
Add: CapEx 84,663.71 9,711.49 43,872.20 8,379.73 74,439.21 84,055.00 1,00,866.00 1,21,039.20 1,45,247.04 1,74,296.45
Less: Depreciation & Amortization 5,603.67 6,724.40 8,069.28 9,683.14 11,619.76
Ending Net Fixed Assets (INR in crores) 2,37,396.41 3,15,847.74 4,09,989.34 5,22,959.26 6,58,523.17 8,21,199.85
CapEx (as % of Sales) 17.64% 1.73% 6.08% 2.16% 15.94% 15.00% 15.00% 15.00% 15.00% 15.00%
Depreciation & Amortization (as% of Sales) 0.71% 0.90% 0.95% 1.85% 1.70% 1.00% 1.00% 1.00% 1.00% 1.00%
Total Debt (INR in crores) 28,242.69 18,652.40 21,554.70 34,303.05 38,268.16 38,268.16 38,268.16 38,268.16 38,268.16 38,268.16
Average Debt 23,447.55 20,103.55 27,928.88 36,285.61 38,268.16 38,268.16 38,268.16 38,268.16 38,268.16
Interest Expense 1,354.32 2,497.66 3,022.34 1,619.11 1,769.80 1,913.41 1,913.41 1,913.41 1,913.41 1,913.41
Interest Cost % 10.65% 15.03% 5.80% 4.88% 5.00% 5.00% 5.00% 5.00% 5.00%

Figure 2 – Consolidated Balance Sheet

11
Profit and Loss Statement - This report provides an overview of the financial performance of Aegis
Logistics Limited over several years and breaks down operating income, other income, expenses and
profit before tax. It illustrates the impact of various factors such as costs, taxes and non-controlling
owners on a company's performance. The statement also provides projections for future years based
on sales growth, spending rates and tax rates. Overall, it provides a comprehensive overview of the
company's financial position, growth path and expected profitability.

Aegis Logistics Limited

Consolidated Statement of Profit & Loss

CAGR 0.99
In Lakhs Actual Forcasted
Column1 Pariculars 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
I Revenue from operations 4,79,095.87 5,61,582.32 7,18,325.21 3,84,345.64 4,63,098.01 5,55,717.61 6,66,861.13 8,00,233.36 9,60,280.03 11,52,336.04
II Other income 835.22 818.66 3,284.03 3,686.99 3,874.21 4,649.05 5,578.86 6,694.63 8,033.56 9,640.27
III Total income ( I + II) 4,79,931.09 5,62,400.98 7,21,609.24 3,88,032.63 4,66,972.22 5,60,366.66 6,72,440.00 8,06,928.00 9,68,313.60 11,61,976.31
IV Expenses
Purchase of stock-in-trade 4,35,771.96 5,04,599.92 6,47,569.15 3,17,732.49 3,91,328.76 4,70,708.00 5,64,849.60 6,77,819.52 8,13,383.42 9,76,060.10
Changes in inventories of stock in trade -320.77 -802.81 -377.69 -1,097.87 -3,126.67 -5,603.67 -6,724.40 -8,069.28 -9,683.14 -11,619.76
Employee benefits expense 4,706.32 5,153.32 5,124.23 4,637.14 6,618.68 5,603.67 6,724.40 8,069.28 9,683.14 11,619.76
Expenses as per Employee Stock Purchase Plan - - 23,878.63 9,832.37 - - - - - -
Finance costs 1,522.82 2,619.03 3,311.84 1,731.21 2,174.79 1913.408 1913.408 1913.408 1913.408 1913.408
Depreciation and amortisation expense 3,431.10 5,054.16 6,871.44 7,159.97 7,935.63 5,603.67 6,724.40 8,069.28 9,683.14 11,619.76
Other expenses 12,338.10 15,544.83 14,475.53 14,476.98 14,841.97 16,811.00 20,173.20 24,207.84 29,049.41 34,859.29
Total expenses 4,57,449.53 5,32,168.45 7,00,853.13 3,54,472.29 4,19,773.16 4,95,036.07 5,93,660.61 7,12,010.04 8,54,029.37 10,24,452.56
V Profit before tax (III- IV) 22,481.56 30,232.53 20,756.11 33,560.34 47,199.06 65,330.59 78,779.39 94,917.95 1,14,284.22 1,37,523.75
VI Income tax expense
Current tax 5,359.34 6,949.08 7,074.72 6,050.53 13,063.83 11,759.51 14,180.29 17,085.23 20,571.16 24,754.27
Adjustments in respect of earlier year (including deferred tax) -168.92 154.86 1,073.99 -15.01 -35.92 - - - - -
Deferred tax -4,089.26 -2,082.02 -789.79 2,602.45 -4,323.03 - - - - -
Total tax expense 1,101.16 5,021.92 7,358.92 8,637.97 8,704.88 11,759.51 14,180.29 17,085.23 20,571.16 24,754.27
VII Profit for the year (V- VI) 21,380.40 25,210.61 13,397.19 24,922.37 38,494.18 53,571.09 64,599.10 77,832.72 93,713.06 1,12,769.47
Attributable to:
Owners of the Company 19,780.85 22,138.83 9,959.41 22,338.22 35,752.29 48,997.94 59,084.54 71,188.46 85,713.17 1,03,142.81
Non Controlling Interest 1,599.55 3,071.78 3,437.78 2,584.15 2,741.89 4,573.14 5,514.56 6,644.26 7,999.90 9,626.66
VIII Other comprehensive income
(i) Items that will not be reclassified subsequently to profit or
loss Remeasurement (gain) of defined benefit obligations 96.68 14.15 88.21 -60.49 -17.46 -17.46 -17.46 -17.46 -17.46 -17.46
(ii) Income tax relating to above items that will not be
reclassified to profit or loss -29.16 -4.76 -15.42 14.41 4.95 4.95 4.95 4.95 4.95 4.95
Total Other comprehensive income (Net of tax) -67.52 -9.39 -72.79 46.08 12.51 12.51 12.51 12.51 12.51 12.51
Attributable to:
Owners of the Company -67.52 22,129.44 -72.79 46.02 12.47 12.47 12.47 12.47 12.47 12.47
Non Controlling Interest - - - 0.06 0.04 0.04 0.04 0.04 0.04 0.04
IX Total comprehensive income(VII+VIII) 21,312.88 25,201.22 13,324.40 24,968.45 38,506.69 53,571.09 64,599.10 77,832.72 93,713.06 1,12,769.47
Attributable to:
Owners of the Company 19,713.33 22,129.44 9,886.62 22,384.24 35,764.76 49,821.11 60,077.16 72,384.43 87,153.15 1,04,875.61
Non Controlling Interest 1,599.55 3,071.78 3,437.78 2,584.21 2,741.93 3,749.98 4,521.94 5,448.29 6,559.91 7,893.86
X Earnings per share (Face Value of Rs.1/- each)
Basic earnings per share (Rs.) 6.4 7.55 2.94 6.49 10.19
Diluted earnings per share (Rs.) 6.4 7.55 2.84 6.36 10.19

0.99

Assumptions:
Sales (Y-o-Y Growth) 17.18% 28.31% -46.23% 20.34% 20.00% 20.00% 20.00% 20.00% 20.00%
Cost of Materials Consumed (as % of Sales) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Purchases of Stock-in-trade (as % of Sales) 91% 90% 90% 82% 84% 84% 84% 84% 84% 84%
Changes in Inventories of Finished goods, Stock-in-trade & Work-
0% 0% 0% 0% -1% -1.00% -1.00% -1.00% -1.00% -1.00%
in-progress (as % of Sales)
Employee Benefits Expenses (as % of Sales) 1% 1% 1% 1% 1% 1.00% 1.00% 1.00% 1.00% 1.00%
Other Expenses (as % of Sales) 3% 3% 2% 4% 3% 3.00% 3.00% 3.00% 3.00% 3.00%
Other Income (Y-o-Y Growth) -1.98% 301.15% 12.27% 5.08% - - - - -
Other Income (as % of Sales) 0% 0% 0% 1% 1% 1.00% 1.00% 1.00% 1.00% 1.00%
Effective Tax Rate 5% 17% 35% 26% 18% 18.00% 18.00% 18.00% 18.00% 18.00%
Non-Controlling Interest (as % of PAT) 7% 12% 26% 10% 7% 7.00% 7.00% 7.00% 7.00% 7.00%

Figure 3 – Consolidated statement of profit and loss

12
Aegis Logistics Limited's consolidated statement of cash flows summarizes the financial
movements of its various operating activities. It shows the company's operating cash flows,
adjustments to non-cash items and changes in working capital. In addition, investment cash flows are
described, including purchases and sales of assets and investments, as well as financial activities that
include capital structure changes through share issuance, borrowing and dividend payments. The net
result reflects the change in financial resources, which provides an overview of the company's
solvency, investment decisions and financial strategies in the accounting years.

Aegis Logistics Limited

Consolidated Cash Flow Statement
In Lakhs Actual Forcasted
Pariculars 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Cash flow from operating activities
Profit before tax 22,481.56 30,232.53 20,756.11 33,560 47,199.06 65,330.59 78,779.39 94,917.95 1,14,284.22 1,37,523.75
Adjustments for:
Depreciation and amortisation 3,431.10 5,054.16 6,871.44 7,159.97 7,935.63 5,603.67 6,724.40 8,069.28 9,683.14 11,619.76
Loss on sale of property, plant and equipment - - 29.23 0.09 20 - - - - -
Profit on sale of investments -9.27 -7.16 -8.01 - - - - - - -
Finance costs 1,522.82 2,619.03 3,311.84 1,731.21 2,174.79 1,913.41 1,913.41 1,913.41 1,913.41 1,913.41
Interest income -309.47 -494.43 -2,385.14 -2,195.89 -2,564.12 - - - - -
Dividend Income on current investments -41.56 -26.45 -27.66 -11.47 - - - - - -
Sundry Credit Balances written back -245.15 -15.12 - -496.46 -237 - - - - -
Bad debts written off 105.75 21.5 8.1 131.58 72.84 - - - - -
Provision for doubtful debts and advances - - - 123.81 - - - - - -
Provision for doubtful debts/ advances written back - - - -242.69 -103.46 - - - - -
Doubtful debtors and advances written of - - - 242.69 - - - - - -
Expenses as per Employee Stock Purchase Plan - - 23,878.63 9,832.37 - - - - - -
Actuarial gain recognised in other comprehensive income -96.68 -14.15 -88.21 60.49 17.46 - - - - -
Operating profit before working capital changes 26,839.10 37,369.91 52,346.33 49,896.04 54,515.20 72,847.67 87,417.20 1,04,900.64 1,25,880.77 1,51,056.92
Adjustments for changes in working capital:
(Increase) in inventories -422.83 -780.13 -831.07 -1,027.79 -3,825.26 -147.45 -1,842.30 -2,210.76 -2,652.91 -3,183.50
(Increase)/ decrease in trade receivables 35,784.64 11,820.55 -22,559.01 35,732.40 -64,388.29 23,170.97 -10,132.66 -12,159.19 -14,591.03 -17,509.23
(Increase) in other current financial assets -361.04 158.92 -4,683.18 -2,075.47 -1,003.96 - - - - -
(Increase) in current assets -3,480.28 1,728.27 -560.06 -1,893.14 -7,628.43 - - - - -
(Increase) in other non current financial assets -89.23 -309.97 50.02 -104.2 -447.62 - - - - -
(Increase) in non-current assets -2,579.22 -235.79 2,506.73 -1,280.79 -511.87 - - - - -
(Increase)/ decrease Bank balance not considered as cash and cash
equivalents -2,018.64 755.01 1,854.54 216.66 -1,718.05 - - - - -
Increase/ (decrease) in trade payables -29,646.74 10,664.65 -8,378.35 -32,191.39 60,238.71 -21,248.11 9,211.51 11,053.81 13,264.57 15,917.48
(Decrease)/ increase in other current financial liabilities -31.29 -19 -357.03 1,060.38 -810.15 - - - - -
Increase/ (decrease) in current provisions 156.28 -1.3 112.01 -85.61 188.4 - - - - -
(Decrease) in other non-current liabilities -36.06 -34.39 -25.4 -2.57 -2.84 - - - - -
(Decrease)/ increase in other current liabilities 655.27 -70.92 1,050.40 354.13 -164.57 - - - - -
Increase Other non-current financial liabilities 78.26 706.82 772.7 713.54 335.03 - - - - -
Increase/ (decrease) in non-current provisions 69.37 112.35 221.53 -126.62 224.31 - - - - -
Cash generated from operations 24,917.59 61,864.98 21,520.16 49,185.57 35,000.61 74,623.09 84,653.75 1,01,584.50 1,21,901.40 1,46,281.68
Income tax paid (net) -5,771.78 -6,235.46 -6,889.04 -5,030.39 -8,713.21 -11,759.51 -14,180.29 -17,085.23 -20,571.16 -24,754.27
Net cash generated from operating activities (A) 19,145.81 55,629.52 14,631.12 44,155.18 26,287.40 62,863.58 70,473.46 84,499.27 1,01,330.24 1,21,527.40
Cash flow from investing activities
Purchase of property, plant and equipment including capital advances -29,912.06 -15,408.57 -17,080.00 -35,877.81 -39,318.41 -84,055.00 -1,00,866.00 -1,21,039.20 -1,45,247.04 -1,74,296.45
Sale of property, plant and equipment - - 5.73 8.59 2.64 - - - - -
Purchase of investments in subsidiary company -15.53 -544.1 - - - - - - - -
Sale of investments in subsidiary Company - - - 0.2 5,321.98 - - - - -
Sale of Current investments - - 321.05 729.81 - - - - - -
Sale of non-current investments - others 26.23 8.27 - - - - - - - -
Loan given - - - -10,295.39 - - - - - -
Repayment of loan - - - - 15,123.97 - - - - -
Dividend income received 41.56 26.45 27.66 11.47 - - - - - -
Interest income received 242.81 449.64 1,584.74 2,624.67 2,675.42 - - - - -
Net cash (used in) investing activities (B) -29,616.99 -15,468.31 -15,140.82 -42,798.46 -16,194.40 -84,055.00 -1,00,866.00 -1,21,039.20 -1,45,247.04 -1,74,296.45
Cash flow from financing activities
Proceeds from issue of shares on exercise of options 23,929.35 56.67 113.33 - - - - - -
Increase in current borrowings (net) 4,302.75 -9,051.44 3,709.28 6,366.38 6,292.66 - - - - -
Proceeds from borrowings 4,037.52 2,523.44 6,000.00 11,223.38 2,902.23 - - - - -
Repayment of borrowings -6,587.06 -1,979.82 -8,274.93 -1,255.14 -12,571.19 - - - - -
Payment of lease liabilities - - -2,836.25 -3,029.11 -3,562.30 - - - - -
Dividend paid (including payment of dividend by a subsidiary to non-
controlling interest) -4,129.36 -3,080.76 -8,662.15 -4,861.59 -22,113.07 -46,057.53 -55,269.04 -66,322.85 -79,587.42 -95,504.90
Share issue expenses of subsidiary Company - - - - -2.46 - - - - -
Interest paid -3,130.22 -2,723.89 -2,576.45 -2,478.68 -1,301.53 -1,913.41 -1,913.41 -1,913.41 -1,913.41 -1,913.41
Net cash (used in)/generated from financing activities (C) 18,422.98 -14,312.47 -12,583.83 6,078.57 -30,355.66 -47,970.94 -57,182.45 -68,236.26 -81,500.83 -97,418.31
Net (decrease)/increase in cash and cash equivalents (A+B+C) 7,951.80 25,848.74 -13,093.53 7,435.29 -20,262.66 -69,162.36 -87,574.99 -1,04,776.19 -1,25,417.63 -1,50,187.36
Cash and cash equivalents as at the beginning of the year 1,540.46 9,492.26 35,341.00 22,247.47 29,682.76 9,420.10 -59,742.26 -1,47,317.25 -2,52,093.44 -3,77,511.07
Cash and cash equivalents as at the end of the year 9,492.26 35,341.00 22,247.47 29,682.76 9,420.10 -59,742.26 -1,47,317.25 -2,52,093.44 -3,77,511.07 -5,27,698.43

Figure 4 – Consolidated Cash Flow statement

13
4.2 Common Size Analysis

The provided consolidated balance sheet analysis is for Aegis Logistics Ltd for the fiscal years 2020-
21 and 2021-22. This analysis breaks down the company's assets, equity, and liabilities and provides
a common-size analysis, which expresses each item as a percentage of total assets or total equity,
making it easier to assess the company's financial structure and performance.

Aegis Logistics Ltd

Consolidated Balance Sheet Analysis
In Lakhs % In Lakhs %
Pariculars 2020-21 Common Size Analysis 2021-22 Common Size Analysis2
Assets
Non current assets
Property, plant and equipment 1,70,886.68 55.44% 2,37,396.41 58.85%
Capital work-in-progress 48,758.19 15.82% 25,253.48 6.26%
Goodwill 125.47 0.04% 125.47 0.03%
Other intangible assets 59.9 0.02% 58.78 0.01%
Financial assets
i. Investments 1.11 0.00% 1.11 0.00%
ii. Loan to Employees 15,123.97 4.91% -
iii. Others -Security deposits 1,413.02 0.46% 1,856.87 0.46%
Income tax assets (net) 3,549.81 1.15% 3,583.22 0.89%
Deferred tax assets (net) 4,019.22 1.30% 7,549.64 1.87%
Other non current assets 4,102.81 1.33% 9,250.43 2.29%
Total non current assets 2,48,040.18 80.48% 2,85,075.41 70.67%
Current assets
Inventories 5,238.80 1.70% 9,064.06 2.25%
Financial assets 0.00% 0.00%
i. Trade receivables 9,415.35 3.05% 73,834.26 18.30%
ii. Cash and cash equivalents 29,682.76 9.63% 9,420.10 2.34%
iii. Bank balance other than (ii) above 3,880.08 1.26% 5,598.13 1.39%
iv. Other financial assets 3,228.70 1.05% 4,064.29 1.01%
v. Investments - - - -
Other current assets 8,729.33 2.83% 16,357.76 4.05%
Total current assets 60,175.02 19.52% 1,18,338.60 29.33%
Total assets 3,08,215.20 100.00% 4,03,414.01 100%
Equity and liabilities
Equity
Equity share capital 3,510.45 1.14% 3,510.45 0.87%
Other equity 1,90,136.94 61.69% 2,14,469.42 53.16%
Equity attributable to owners of the Company 1,93,647.39 62.83% 2,17,979.87 54.03%
Non Controlling Interest 10,902.45 3.54% 8,258.65 2.05%
Total equity 2,04,549.84 66.37% 2,26,238.52 56.08%
Liabilities
Non-current liabilities
Financial liabilities
i. Borrowings 11,231.97 3.64% 6,427.55 1.59%
ii. Lease Liability - 41,269.13 10.23%
iii. Other financial liabilities 32,405.64 10.51% 3,897.42 0.97%
Provisions 1,264.00 0.41% 1,488.31 0.37%
Deferred tax liabilities (net) 8,090.87 2.63% 7,302.22 1.81%
Other non-current liabilities 112.02 0.04% 92.19 0.02%
Total non-current liabilities 53,104.50 17.23% 60,476.82 14.99%
Current liabilities
Financial liabilities
i. Borrowings 23,071.08 7.49% 31,840.61 7.89%
ii. Lease Liability - 3,993.15 0.99%
iii. Trade payables
Total outstanding dues of creditors of micro enterprises and small
enterprises 35.53 0.01% 163.07 0.04%
Total outstanding dues of creditors other than micro enterprises and
small enterprises 7,431.47 2.41% 67,305.64 16.68%
iv. Other financial liabilities 15,132.23 4.91% 4,132.71 1.02%
Other current liabilities 4,056.64 1.32% 3,892.07 0.96%
Provisions 315.99 0.10% 504.39 0.13%
Deferred tax liabilities (net) - -
Current tax liabilities (net) 517.92 0.17% 4,867.03 1.21%
Total current liabilities 50,560.86 16.40% 1,16,698.67 28.93%
Total liabilities 1,03,665.36 33.63% 1,77,175.49 43.92%
Total equity and liabilities 3,08,215.20 100.00% 4,03,414.01 100.00%

Figure 5 – Balance Sheet Common size analysis

14
The provided consolidated statement of profit and loss analysis is for Aegis Logistics Ltd for the
fiscal years 2020-21 and 2021-22. This analysis breaks down the company's income, expenses, and
profitability metrics, and provides a common-size analysis, which expresses each item as a
percentage of total income, making it easier to assess the company's financial performance.

Aegis Logistics Ltd

Consolidated Statement of Profit & Loss Analysis
In Lakhs % In Lakhs %
Column1 Pariculars 2020-21 Common Size Analysis 2021-22 Common Size Analysis2
I Revenue from operations 3,84,345.64 99.05% 4,63,098.01
II Other income 3,686.99 0.95% 3,874.21
III Total income ( I + II) 3,88,032.63 100.00% 4,66,972.22 100%
IV Expenses
Purchase of stock-in-trade 3,17,732.49 81.88% 3,91,328.76 83.80%
Changes in inventories of stock in trade -1,097.87 -0.28% -3,126.67 -0.67%
Employee benefits expense 4,637.14 1.20% 6,618.68 1.42%
Expenses as per Employee Stock Purchase Plan 9,832.37 2.53% -
Finance costs 1,731.21 0.45% 2,174.79 0.47%
Depreciation and amortisation expense 7,159.97 1.85% 7,935.63 1.70%
Other expenses 14,476.98 3.73% 14,841.97 3.18%
Total expenses 3,54,472.29 91.35% 4,19,773.16 89.89%
V Profit before tax (III- IV) 33,560.34 8.65% 47,199.06 10.11%
VI Income tax expense
Current tax 6,050.53 1.56% 13,063.83 2.80%
Adjustments in respect of earlier year (including deferred tax) -15.01 0.00% -35.92 -0.01%
Deferred tax 2,602.45 0.67% -4,323.03 -0.93%
Total tax expense 8,637.97 2.23% 8,704.88 1.86%
VII Profit for the year (V- VI) 24,922.37 6.42% 38,494.18 8.24%
Attributable to:
Owners of the Company 22,338.22 5.76% 35,752.29 7.66%
Non Controlling Interest 2,584.15 0.67% 2,741.89 0.59%
VIII Other comprehensive income
(i) Items that will not be reclassified subsequently to profit or loss
Remeasurement (gain) of defined benefit obligations -60.49 -0.02% -17.46 0.00%
(ii) Income tax relating to above items that will not be reclassified to
profit or loss 14.41 0.00% 4.95 0.00%
Total Other comprehensive income (Net of tax) 46.08 0.01% 12.51 0.00%
Attributable to:
Owners of the Company 46.02 0.01% 12.47 0.00%
Non Controlling Interest 0.06 0.00% 0.04 0.00%
IX Total comprehensive income(VII+VIII) 24,968.45 6.43% 38,506.69 8.25%
Attributable to:
Owners of the Company 22,384.24 5.77% 35,764.76 7.66%
Non Controlling Interest 2,584.21 0.67% 2,741.93 0.59%
X Earnings per share (Face Value of Rs.1/- each)
Basic earnings per share (Rs.) 6.49 0.00% 10.19 0.00%
Diluted earnings per share (Rs.) 6.36 0.00% 10.19 0.00%

Figure 6 – Profit and loss common size analysis

15
4.3 Comparative Analysis

The provided comparative analysis of Aegis Logistics Ltd's consolidated balance sheet for the fiscal
years 2021-22 and 2020-21 highlights significant changes in the company's assets, equity, and
liabilities.

Aegis Logistics Ltd

Consolidated Balance Sheet : Comparative Analysis
In Lakhs In Lakhs In Lakhs %
Pariculars 2021-22 2020-21 Difference %Difference
Assets
Non current assets
Property, plant and equipment 2,37,396.41 1,70,886.68 66,509.73 38.92%
Capital work-in-progress 25,253.48 48,758.19 -23,504.71 -48.21%
Goodwill 125.47 125.47 0.00 0.00%
Other intangible assets 58.78 59.9 -1.12 -1.87%
Financial assets
i. Investments 1.11 1.11 0.00 0.00%
ii. Loan to Employees 0 15,123.97 -15,123.97 -100.00%
iii. Others -Security deposits 1,856.87 1,413.02 443.85 31.41%
Income tax assets (net) 3,583.22 3,549.81 33.41 0.94%
Deferred tax assets (net) 7,549.64 4,019.22 3,530.42 87.84%
Other non current assets 9,250.43 4,102.81 5,147.62 125.47%
Total non current assets 2,85,075.41 2,48,040.18 37,035.23 14.93%
Current assets
Inventories 9,064.06 5,238.80 3,825.26 73.02%
Financial assets
i. Trade receivables 73,834.26 9,415.35 64,418.91 684.19%
ii. Cash and cash equivalents 9,420.10 29,682.76 -20,262.66 -68.26%
iii. Bank balance other than (ii) above 5,598.13 3,880.08 1,718.05 44.28%
iv. Other financial assets 4,064.29 3,228.70 835.59 25.88%
v. Investments - - - -
Other current assets 16,357.76 8,729.33 7,628.43 87.39%
Total current assets 1,18,338.60 60,175.02 58,163.58 96.66%
Total assets 4,03,414.01 3,08,215.20 95,198.81 30.89%
Equity and liabilities
Equity
Equity share capital 3,510.45 3,510.45 0.00 0.00%
Other equity 2,14,469.42 1,90,136.94 24,332.48 12.80%
Equity attributable to owners of the Company 2,17,979.87 1,93,647.39 24,332.48 12.57%
Non Controlling Interest 8,258.65 10,902.45 -2,643.80 -24.25%
Total equity 2,26,238.52 2,04,549.84 21,688.68 10.60%
Liabilities
Non-current liabilities
Financial liabilities
i. Borrowings 6,427.55 11,231.97 -4,804.42 -42.77%
ii. Lease Liability 41,269.13 0 41,269.13 -
iii. Other financial liabilities 3,897.42 32,405.64 -28,508.22 -87.97%
Provisions 1,488.31 1,264.00 224.31 17.75%
Deferred tax liabilities (net) 7,302.22 8,090.87 -788.65 -9.75%
Other non-current liabilities 92.19 112.02 -19.83 -17.70%
Total non-current liabilities 60,476.82 53,104.50 7,372.32 13.88%
Current liabilities
Financial liabilities
i. Borrowings 31,840.61 23,071.08 8,769.53 38.01%
ii. Lease Liability 3,993.15 - - -
iii. Trade payables
Total outstanding dues of creditors of micro
enterprises and small enterprises 163.07 35.53 127.54 358.96%
Total outstanding dues of creditors other than
micro enterprises and small enterprises 67,305.64 7,431.47 59,874.17 805.68%
iv. Other financial liabilities 4,132.71 15,132.23 -10,999.52 -72.69%
Other current liabilities 3,892.07 4,056.64 -164.57 -4.06%
Provisions 504.39 315.99 188.40 59.62%
Deferred tax liabilities (net) - - - -
Current tax liabilities (net) 4,867.03 517.92 4,349.11 839.73%
Total current liabilities 1,16,698.67 50,560.86 66,137.81 130.81%
Total liabilities 1,77,175.49 1,03,665.36 73,510.13 70.91%
Total equity and liabilities 4,03,414.01 3,08,215.20 95,198.81 30.89%

Figure 7 – Balance Sheet Comparative Analysis

16
The provided comparative analysis of Aegis Logistics Ltd's consolidated statement of profit and loss
for the fiscal years 2021-22 and 2020-21 shows significant changes in the company's revenue,
expenses, and profitability.

Aegis Logistics Ltd

Consolidated Statement of Profit & Loss : Comparative Analysis
In Lakhs In Lakhs In Lakhs %
Column1 Pariculars 2021-22 2020-21 Difference %Difference
I Revenue from operations 4,63,098.01 3,84,345.64 78,752.37 20.49%
II Other income 3,874.21 3,686.99 187.22 5.08%
III Total income ( I + II) 4,66,972.22 3,88,032.63 78,939.59 20.34%
IV Expenses
Purchase of stock-in-trade 3,91,328.76 3,17,732.49 73,596.27 23.16%
Changes in inventories of stock in trade -3,126.67 -1,097.87 -2,028.80 184.79%
Employee benefits expense 6,618.68 4,637.14 1,981.54 42.73%
Expenses as per Employee Stock Purchase Plan 0 9,832.37 -9,832.37 -100.00%
Finance costs 2,174.79 1,731.21 443.58 25.62%
Depreciation and amortisation expense 7,935.63 7,159.97 775.66 10.83%
Other expenses 14,841.97 14,476.98 364.99 2.52%
Total expenses 4,19,773.16 3,54,472.29 65,300.87 18.42%
V Profit before tax (III- IV) 47,199.06 33,560.34 13,638.72 40.64%
VI Income tax expense
Current tax 13,063.83 6,050.53 7,013.30 115.91%
Adjustments in respect of earlier year (including deferred tax) -35.92 -15.01 -20.91 139.31%
Deferred tax -4,323.03 2,602.45 -6,925.48 -266.11%
Total tax expense 8,704.88 8,637.97 66.91 0.77%
VII Profit for the year (V- VI) 38,494.18 24,922.37 13,571.81 54.46%
Attributable to:
Owners of the Company 35,752.29 22,338.22 13,414.07 60.05%
Non Controlling Interest 2,741.89 2,584.15 157.74 6.10%
VIII Other comprehensive income
(i) Items that will not be reclassified subsequently to profit or
loss Remeasurement (gain) of defined benefit obligations -17.46 -60.49 43.03 -71.14%
(ii) Income tax relating to above items that will not be
reclassified to profit or loss 4.95 14.41 -9.46 -65.65%
Total Other comprehensive income (Net of tax) 12.51 46.08 -33.57 -72.85%
Attributable to:
Owners of the Company 12.47 46.02 -33.55 -72.90%
Non Controlling Interest 0.04 0.06 -0.02 -33.33%
IX Total comprehensive income(VII+VIII) 38,506.69 24,968.45 13,538.24 54.22%
Attributable to:
Owners of the Company 35,764.76 22,384.24 13,380.52 59.78%
Non Controlling Interest 2,741.93 2,584.21 157.72 6.10%
X Earnings per share (Face Value of Rs.1/- each)
Basic earnings per share (Rs.) 10.19 6.49 3.70 57%
Diluted earnings per share (Rs.) 10.19 6.36 3.83 60%

Figure 8 – Profit and loss Comparative Analysis

17
4.4 Trend Analysis

The provided trend analysis of Aegis Logistics Ltd's consolidated balance sheet for the fiscal years
2017-18 to 2021-22 reveals the evolution of the company's assets, equity, and liabilities over this
period. Trend analysis is an analysis of a company's trend, in which the company's financial
statements are compared to analyse the market trend, or future analysis, which is based on past results
and is an attempt to make the best decisions based on the results of the analysis done.

Aegis Logistics Ltd

Consolidated Balance Sheet : Trend Analysis
In Lakhs In Lakhs In Lakhs In Lakhs In Lakhs % % % % %
Pariculars 2017-18 2018-19 2019-20 2020-21 2021-22 Base 2018-19 2019-20 2020-21 2021-22
Assets
Non current assets
Property, plant and equipment 1,27,983.96 1,32,649.84 1,69,659.16 1,70,886.68 2,37,396.41 100% 104% 133% 134% 185%
Capital work-in-progress 12,558.44 12,066.38 22,011.45 48,758.19 25,253.48 100% 96% 175% 388% 201%
Goodwill 125.47 125.47 125.47 125.47 125.47 100% 100% 100% 100% 100%
Other intangible assets 128.6 99.42 86.18 59.9 58.78 100% 77% 67% 47% 46%
Financial assets
i. Investments 2.22 1.11 1.11 1.11 1.11 100% 50% 50% 50% 50%
ii. Loan to Employees - - - 15,123.97 - 100% - - - -
iii. Others -Security deposits 899.39 1,264.63 1,270.33 1,413.02 1,856.87 100% 141% 141% 157% 206%
Income tax assets (net) 1,530.13 2,171.53 2,589.33 3,549.81 3,583.22 100% 142% 169% 232% 234%
Deferred tax assets (net) 6,495.43 9,535.80 4,732.43 4,019.22 7,549.64 100% 147% 73% 62% 116%
Other non current assets 8,971.76 9,117.12 1,603.64 4,102.81 9,250.43 100% 102% 18% 46% 103%
Total non current assets 1,58,695.40 1,67,031.30 2,02,079.10 2,48,040.18 2,85,075.41 100% 105% 127% 156% 180%
Current assets
Inventories 2,599.81 3,379.94 4,211.01 5,238.80 9,064.06 100% 130% 162% 202% 349%
Financial assets
i. Trade receivables 34,694.28 22,852.23 45,403.14 9,415.35 73,834.26 100% 66% 131% 27% 213%
ii. Cash and cash equivalents 9,492.26 35,341.00 22,247.47 29,682.76 9,420.10 100% 372% 234% 313% 99%
iii. Bank balance other than (ii) above 6,706.29 5,951.28 4,096.74 3,880.08 5,598.13 100% 89% 61% 58% 83%
iv. Other financial assets 960.99 753.29 6,466.71 3,228.70 4,064.29 100% 78% 673% 336% 423%
v. Investments - 1,042.85 729.81 - - 100% - - - -
Other current assets 8,244.35 6,516.08 6,836.19 8,729.33 16,357.76 100% 79% 83% 106% 198%
Total current assets 62,697.98 75,836.67 89,991.07 60,175.02 1,18,338.60 100% 121% 144% 96% 189%
Total assets 2,21,393.38 2,42,867.97 2,92,070.17 3,08,215.20 4,03,414.01 100% 110% 132% 139% 182%
Equity and liabilities
Equity
Equity share capital 3,340.45 3,340.45 3,397.12 3,510.45 3,510.45 100% 100% 102% 105% 105%
Other equity 1,17,387.44 1,35,787.25 1,62,064.20 1,90,136.94 2,14,469.42 100% 116% 138% 162% 183%
Equity attributable to owners of the Company 1,20,727.89 1,39,127.70 1,65,461.32 1,93,647.39 2,17,979.87 100% 115% 137% 160% 181%
Non Controlling Interest 6,970.09 7,481.24 9,060.22 10,902.45 8,258.65 100% 107% 130% 156% 118%
Total equity 1,27,697.98 1,46,608.94 1,74,521.54 2,04,549.84 2,26,238.52 100% 115% 137% 160% 177%
Liabilities
Non-current liabilities
Financial liabilities
i. Borrowings 6,195.83 5,656.98 4,850.00 11,231.97 6,427.55 100% 91% 78% 181% 104%
ii. Lease Liability - - - - 41,269.13 100% - - - -
iii. Other financial liabilities 1,339.21 2,046.03 31,645.66 32,405.64 3,897.42 100% 153% 2363% 2420% 291%
Provisions 1,056.74 1,169.09 1,390.62 1,264.00 1,488.31 100% 111% 132% 120% 141%
Deferred tax liabilities (net) - 3,089.97 8,090.87 7,302.22 100% - - - -
Other non-current liabilities 192.01 157.62 132.22 112.02 92.19 100% 82% 69% 58% 48%
Total non-current liabilities 8,783.79 9,029.72 41,108.47 53,104.50 60,476.82 100% 103% 468% 605% 689%
Current liabilities
Financial liabilities
i. Borrowings 22,046.86 12,995.42 16,704.70 23,071.08 31,840.61 100% 59% 76% 105% 144%
ii. Lease Liability - - 3,993.15 100% - - - -
iii. Trade payables 100% - - - -
Total outstanding dues of creditors of micro
enterprises and small enterprises - 40,154.85 35.53 163.07 100% - - - -
Total outstanding dues of creditors other than
micro enterprises and small enterprises 37,883.67 48,533.20 13,826.95 7,431.47 67,305.64 100% 128% 36% 20% 178%
iv. Other financial liabilities 14,207.49 12,538.33 3,702.51 15,132.23 4,132.71 100% 88% 26% 107% 29%
Other current liabilities 2,723.03 2,652.11 - 4,056.64 3,892.07 100% 97% - 149% 143%
Provisions 290.89 289.59 401.6 315.99 504.39 100% 100% 138% 109% 173%
Deferred tax liabilities (net) 7,045.14 8,344.41 - - - 100% 118% - - -
Current tax liabilities (net) 714.53 1,876.25 1,649.55 517.92 4,867.03 100% 263% 231% 72% 681%
Total current liabilities 84,911.61 87,229.31 76,440.16 50,560.86 1,16,698.67 100% 103% 90% 60% 137%
Total liabilities 93,695.40 96,259.03 1,17,548.63 1,03,665.36 1,77,175.49 100% 103% 125% 111% 189%
Total equity and liabilities 2,21,393.38 2,42,867.97 2,92,070.17 3,08,215.20 4,03,414.01 100% 110% 132% 139% 182%

Figure 9 – Balance Sheet Trend analysis

18
The provided trend analysis of Aegis Logistics Limited's consolidated statement of profit and loss
(P&L) for the fiscal years 2017-18 to 2021-22 offers insights into the company's financial
performance over this period. Trend analysis is an analysis of a company's trend, in which the
company's financial statements are compared to analyse the market trend, or future analysis, which
is based on past results and is an attempt to make the best decisions based on the results of the
analysis done

Aegis Logistics Limited

Consolidated Statement of Profit & Loss : Trend Analysis
In Lakhs In Lakhs In Lakhs In Lakhs In Lakhs % % % % %
Column1 Pariculars 2017-18 2018-19 2019-20 2020-21 2021-22 Base 2018-19 2019-20 2020-21 2021-22
I Revenue from operations 4,79,095.87 5,61,582.32 7,18,325.21 3,84,345.64 4,63,098.01 100% 117% 150% 80% 97%
II Other income 835.22 818.66 3,284.03 3,686.99 3,874.21 100% 98% 393% 441% 464%
III Total income ( I + II) 4,79,931.09 5,62,400.98 7,21,609.24 3,88,032.63 4,66,972.22 100% 117% 150% 81% 97%
IV Expenses
Purchase of stock-in-trade 4,35,771.96 5,04,599.92 6,47,569.15 3,17,732.49 3,91,328.76 100% 116% 149% 73% 90%
Changes in inventories of stock in trade -320.77 -802.81 -377.69 -1,097.87 -3,126.67 100% 250% 118% 342% 975%
Employee benefits expense 4,706.32 5,153.32 5,124.23 4,637.14 6,618.68 100% 109% 109% 99% 141%
Expenses as per Employee Stock Purchase Plan - - 23,878.63 9,832.37 - 100% - - - -
Finance costs 1,522.82 2,619.03 3,311.84 1,731.21 2,174.79 100% 172% 217% 114% 143%
Depreciation and amortisation expense 3,431.10 5,054.16 6,871.44 7,159.97 7,935.63 100% 147% 200% 209% 231%
Other expenses 12,338.10 15,544.83 14,475.53 14,476.98 14,841.97 100% 126% 117% 117% 120%
Total expenses 4,57,449.53 5,32,168.45 7,00,853.13 3,54,472.29 4,19,773.16 100% 116% 153% 77% 92%
V Profit before tax (III- IV) 22,481.56 30,232.53 20,756.11 33,560.34 47,199.06 100% 134% 92% 149% 210%
VI Income tax expense
Current tax 5,359.34 6,949.08 7,074.72 6,050.53 13,063.83 100% 130% 132% 113% 244%
Adjustments in respect of earlier year (including deferred tax) -168.92 154.86 1,073.99 -15.01 -35.92 100% -92% -636% 9% 21%
Deferred tax -4,089.26 -2,082.02 -789.79 2,602.45 -4,323.03 100% 51% 19% -64% 106%
Total tax expense 1,101.16 5,021.92 7,358.92 8,637.97 8,704.88 100% 456% 668% 784% 791%
VII Profit for the year (V- VI) 21,380.40 25,210.61 13,397.19 24,922.37 38,494.18 100% 118% 63% 117% 180%
Attributable to:
Owners of the Company 19,780.85 22,138.83 9,959.41 22,338.22 35,752.29 100% 112% 50% 113% 181%
Non Controlling Interest 1,599.55 3,071.78 3,437.78 2,584.15 2,741.89 100% 192% 215% 162% 171%
VIII Other comprehensive income
(i) Items that will not be reclassified subsequently to profit or
loss Remeasurement (gain) of defined benefit obligations 96.68 14.15 88.21 -60.49 -17.46 100% 15% 91% -63% -18%
(ii) Income tax relating to above items that will not be
reclassified to profit or loss -29.16 -4.76 -15.42 14.41 4.95 100% 16% 53% -49% -17%
Total Other comprehensive income (Net of tax) -67.52 -9.39 -72.79 46.08 12.51 100% 14% 108% -68% -19%
Attributable to:
Owners of the Company -67.52 22,129.44 -72.79 46.02 12.47 100% -32775% 108% -68% -18%
Non Controlling Interest - - - 0.06 0.04 100% - - - -
IX Total comprehensive income(VII+VIII) 21,312.88 25,201.22 13,324.40 24,968.45 38,506.69 100% 118% 63% 117% 181%
Attributable to:
Owners of the Company 19,713.33 22,129.44 9,886.62 22,384.24 35,764.76 100% 112% 50% 114% 181%
Non Controlling Interest 1,599.55 3,071.78 3,437.78 2,584.21 2,741.93 100% 192% 215% 162% 171%
X Earnings per share (Face Value of Rs.1/- each)
Basic earnings per share (Rs.) 6.4 7.55 2.94 6.49 10.19 100% 118% 46% 101% 159%
Diluted earnings per share (Rs.) 6.4 7.55 2.84 6.36 10.19 100% 118% 44% 99% 159%

Figure 10 – Profit and Loss Trend Analysis

19
4.5 Beta

A company's beta is a measure of a security's volatility, or systematic risk, relative to the broader
market. A company's beta measures how a company's stock market value changes with changes in
the general market.

AEGIS LOGISTICS LIMITED

5Y Historical Price Data Using COV/VAR Function Using SLOPE Function
AEGIS LOGISTICS LIMITED Nifty50 Index Beta (β) 0.79 Beta (β) 0.79
SR. NO Date Closing price Daily Return Date Closing price Daily Return
1 19-May-23 369.3 19-May-23 18203.4
2 18-May-23 367.9 -0.3798% 18-May-23 18129.95 -0.4043%
3 17-May-23 369.1 0.3256% 17-May-23 18181.75 0.2853%
4 16-May-23 367.7 -0.3800% 16-May-23 18286.5 0.5745%
5 15-May-23 364.35 -0.9152% 15-May-23 18398.85 0.6125% Market Rate of Return (Daily) -0.0455%
6 12-May-23 377.65 3.5853% 12-May-23 18314.8 -0.4579% Market Rate of Return (Yearly) 10.75%
7 11-May-23 387.5 2.5748% 11-May-23 18297 -0.0972%
8 10-May-23 395.8 2.1193% 10-May-23 18315.1 0.0989%
9 09-May-23 395.25 -0.1391% 09-May-23 18265.95 -0.2687%
10 08-May-23 397.25 0.5047% 08-May-23 18264.4 -0.0085%
11 05-May-23 394.15 -0.7834% 05-May-23 18069 -1.0756%
12 04-May-23 392.3 -0.4705% 04-May-23 18255.8 1.0285%
13 03-May-23 392.35 0.0127% 03-May-23 18089.85 -0.9132%
14 02-May-23 394.1 0.4450% 02-May-23 18147.65 0.3190%
15 28-Apr-23 391.85 -0.5726% 28-Apr-23 18065 -0.4565%
16 27-Apr-23 391.5 -0.0894% 27-Apr-23 17915.05 -0.8335%
17 26-Apr-23 393.1 0.4079% 26-Apr-23 17813.6 -0.5679%
18 25-Apr-23 397.7 1.1634% 25-Apr-23 17769.25 -0.2493%
19 24-Apr-23 407.85 2.5202% 24-Apr-23 17743.4 -0.1456%
20 21-Apr-23 386.75 -5.3121% 21-Apr-23 17624.05 -0.6749%
21 20-Apr-23 388.2 0.3742% 20-Apr-23 17624.45 0.0023%
22 19-Apr-23 391.2 0.7698% 19-Apr-23 17618.75 -0.0323%
23 18-Apr-23 386.25 -1.2734% 18-Apr-23 17660.15 0.2347%
24 17-Apr-23 383.45 -0.7276% 17-Apr-23 17706.85 0.2641%
25 13-Apr-23 386.95 0.9086% 13-Apr-23 17828 0.6819%
26 12-Apr-23 382.05 -1.2744% 12-Apr-23 17812.4 -0.0875%
27 11-Apr-23 393.5 2.9530% 11-Apr-23 17722.3 -0.5071%
28 10-Apr-23 386.55 -1.7820% 10-Apr-23 17624.05 -0.5559%
29 06-Apr-23 389.25 0.6961% 06-Apr-23 17599.15 -0.1414%
30 05-Apr-23 400.05 2.7368% 05-Apr-23 17557.05 -0.2395%
31 03-Apr-23 375.95 -6.2133% 03-Apr-23 17398.05 -0.9097%
32 31-Mar-23 378.95 0.7948% 31-Mar-23 17359.75 -0.2204%
33 29-Mar-23 376.3 -0.7018% 29-Mar-23 17080.7 -1.6205%
34 28-Mar-23 376.9 0.1593% 28-Mar-23 16951.7 -0.7581%
35 27-Mar-23 380 0.8191% 27-Mar-23 16985.7 0.2004%
36 24-Mar-23 397.65 4.5401% 24-Mar-23 16945.05 -0.2396%
37 23-Mar-23 393.85 -0.9602% 23-Mar-23 17076.9 0.7751%
38 22-Mar-23 371.9 -5.7345% 22-Mar-23 17151.9 0.4382%

Figure 11 - Beta

20
4.6 Weighted Average Cost of Capital (WACC)

The information provided describes the financial structure and expenses of Aegis Logistic
Limited for the financial year 2021-22. It describes the company's cost of debt (4.62%), adjusted
cost of debt (3.34%), expected return to shareholders (9.96%) and capital structure (1.95% and
98.05% of equity). The weighted average cost of capital (WACC), a key figure that describes the
average return a company needs on its investments to cover its financing costs, is calculated at
9.83%. This information provides an overview of the combination of debt and equity financing
and its impact on the company's total cost of capital.

Aegis Logistic Limited

Weighted Average Cost of Capital (WACC)
Particulars (INR in crore): FY 2021-22
Cost of Debt Calculation
Gross Interest Expense 1,769.80
Total Debt 38,268.16
Cost of Debt (Kd) 4.62% Kd = Gross Interest Expense/Total Debt
Income Tax Expense 13,063.83
Income Before Tax 47,199.06
Effective Tax Rate 27.68%
After Tax Cost of Debt [Kd(1-t)] 3.34%
Cost of Equity Calculation (CAPM)
Risk-free Rate of Return (Rf) 7.00%
Beta (β) 0.79
Market Rate of Return (Rm) 10.75%
Cost of Equity (Ke) 9.96% Ke = Rf + β*(Rm - Rf)
Weights Calculation
Total Debt 38,268.16
Market Capitalization 19,20,360.00
Total 19,58,628.16
Weight of Debt (wd) 1.95%
Weight of Equity (we) 98.05%
WACC Calculation 9.83% WACC = [wd*Kd(1-t)] + [we*Ke]

Figure 12 – WACC Statement

21
4.7 Financial Terms-
The financial terms form the basis of the valuation process. By understanding these terms and
their impact, investors and analysts can make holistic assessments, make informed investment
choices and determine the fair market value of companies and assets.

Aegis Logistic Limited

Important Terms from Consolidated Financial Statements
Financial Terms: FY 2019 FY 2020 FY 2021 FY 2022
Cost of Goods Sold (COGS) (INR in lakhs) 5,19,341.94 6,61,666.99 3,31,111.60 4,03,044.06
Revenue or Total Income (INR in lakhs) 5,62,400.98 7,21,609.24 3,88,032.63 4,66,972.22
Other Income (INR in lakhs) 818.66 3,284.03 3,686.99 3,874.21
Sales (INR in lakhs) 5,61,582.32 7,18,325.21 3,84,345.64 4,63,098.01
Total Expenses (INR in lakhs) 5,32,168.45 7,00,853.13 3,54,472.29 4,19,773.16
Inventories (INR in lakhs) 3,379.94 4,211.01 5,238.80 9,064.06
Average Inventory (INR in lakhs) 2,989.88 3,795.48 4,724.91 7,151.43
Trade Receivables (INR in lakhs) 22,852.23 45,403.14 9,415.35 73,834.26
Average Trade Receivables (INR in lakhs) 28,773.26 34,127.69 27,409.25 41,624.81
Trade Payables (INR in lakhs) 48533.2 53981.8 7467 67468.71
Average Trade Payables (INR in lakhs) 43,208.44 51,257.50 30,724.40 37,467.86
Current Assets (CA) (INR in lakhs) 75,836.67 89,991.07 60,175.02 1,18,338.60
Current Liabilities (CL) (INR in lakhs) 87,229.31 76,440.16 50,560.86 1,16,698.67
Working Capital (WC) (INR in lakhs) (11,392.64) 13,550.91 9,614.16 1,639.93
Average Working Capital (INR in lakhs) (16,803.14) 1,079.14 11,582.54 5,627.04
Net Fixed Assets (INR in lakhs) 1,32,649.84 1,69,659.16 1,70,886.68 2,37,396.41
Average Net Fixed Assets (INR in lakhs) 1,30,316.90 1,51,154.50 1,70,272.92 2,04,141.55
Total Assets (INR in lakhs) 2,42,867.97 2,92,070.17 3,08,215.20 4,03,414.01
Average Total Assets (INR in lakhs) 2,32,130.68 2,67,469.07 3,00,142.69 3,55,814.61
Total Shareholder's Equity (INR in lakhs) 1,39,127.70 1,65,461.32 1,93,647.39 2,17,979.87
Average Shareholder's Equity (INR in lakhs) 1,29,927.80 1,52,294.51 1,79,554.36 2,05,813.63
Equity Share Capital or Shares Outstanding (INR in lakhs) 3,340.45 3,397.12 3,510.45 3,510.45
Total Equity (INR in lakhs) 1,46,608.94 1,74,521.54 2,04,549.84 2,26,238.52
Short-term Marketable Investments (INR in lakhs) 1,042.85 729.81 - -
Cash & Cash Equivalents (INR in lakhs) 35,341.00 22,247.47 29,682.76 9,420.10
Total Debt (INR in lakhs) 18,652.40 21,554.70 34,303.05 38,268.16
EBITDA (INR in lakhs) 30,232.53 20,756.11 33,560.34 47,199.06
EBIT or Operating Profit (INR in lakhs) 32,730.19 23,778.45 35,179.45 48,968.86
Interest Expenses (INR in lakhs) 2,497.66 3,022.34 1,619.11 1,769.80
Taxes (INR in lakhs) 5,021.92 7,358.92 8,637.97 8,704.88
Net Operating Income (INR in lakhs) 43,059.04 59,942.25 56,921.03 63,928.16
Gross Profit (INR in lakhs) 43,059.04 59,942.25 56,921.03 63,928.16
Net Income (INR in lakhs) 25,210.61 13,397.19 24,922.37 38,494.18
Capital Employed (INR in lakhs) 1,55,638.66 2,15,630.01 2,57,654.34 2,86,715.34
Non-Controlling Interest (INR in lakhs) 7,481.24 9,060.22 10,902.45 8,258.65
% Change in EBIT 37.31% -27.35% 47.95% 39.20%
% Change in Sales 17.22% 27.91% -46.49% 20.49%
% Change in EPS 17.92% -47.75% 80.02% 54.46%
th
Current Market Price (CMP as on 30 March of each FY in INR) 203.2 127.7 289.25 210.35
Book Value Per Share (BVPS) 43.89 51.37 58.27 64.45
Total Dividend Paid (INR) 3080.76 8662.15 4861.59 22113.07
Dividend Per Share (DPS) (in INR) 0.92 2.55 1.38 6.30
Earnings Per Share (EPS) (in INR) 7.55 3.94 7.10 10.97
Market Capitalization (in INR lakhs) 6,78,779.44 4,33,812.22 10,15,397.66 7,38,423.16
Enterprise Value (EV) (in INR lakhs) 6,69,572.08 4,42,179.67 10,30,920.40 7,75,529.87

Figure 13 – Financial Terms

22
4.8 Financial Ratios-

Financial ratios are numerical tools that help evaluate a company's financial performance and health.
These ratios are calculated from financial statements and provide insights into areas like liquidity
(ability to pay short-term debts), profitability (earnings relative to various factors), efficiency (asset
utilization), debt levels, market value, and more. They assist investors, analysts, and management in
assessing a company's strengths, weaknesses, and trends, aiding in decision-making and
comparisons with industry standards.

Aegis Logistic Limited

Financial Ratios from Consolidated Financial Statements
Financial Ratios: Formula: FY 2019 FY 2020 FY 2021 FY 2022
Activity Ratios
Inventory Turnover Ratio COGS/Average Inventory 188.10 190.12 82.12 65.30
Days of Inventory On-hand (DIO) 365/Inventory Turnover Ratio 1.94 1.92 4.44 5.59
Receivables Turnover Ratio Net Credit Sales/Average Trade Receivables 19.55 21.14 14.16 11.22
Days of Sales Outstanding (DSO) 365/Receivables Turnover Ratio 18.67 17.26 25.78 32.54
Payables Turnover Ratio Net Purchases/Average Trade Payables 13.02 14.08 12.63 12.46
Number of Days of Payables (DPO) 365/Payables Turnover Ratio 28.04 25.93 28.90 29.29
Working Capital Turnover Ratio Revenue/Average Working Capital (33.47) 668.69 33.50 82.99
Net Fixed Asset Turnover Ratio Revenue/Average Net Fixed Assets 4.32 4.77 2.28 2.29
Asset Turnover Ratio Revenue/Average Total Assets 2.42 2.70 1.29 1.31
Equity Turnover Ratio Revenue/Average Shareholders' Equity 4.33 4.74 2.16 2.27
Liquidity Ratios
Current Ratio (CR) Current Assets/Current Liabilities 0.87 1.18 1.19 1.01
Quick Ratio (QR) (Current Assets - Inventories)/Current Liabilities 0.83 1.12 1.09 0.94
(Cash & Cash Equivalent + Short-term Makertable Investments)/Current
Cash Ratio 0.42 0.30 0.59 0.08
Liabilities
Solvency Ratios
Leverage Ratios
Debt-to-Equity (D/E) Ratio Total Debt/Total Shareholders' Equity 0.13 0.13 0.18 0.18
Total Asset-to-Debt Ratio Total Assets/Total Debt 13.02 13.55 8.99 10.54
Coverage Ratios
Interest Coverage Ratio (ICR) EBIT/Interest Expense 13.10 7.87 21.73 27.67
Debt Service Coverage Ratio (DSCR) Net Operating Income/Total Debt Service (or, EBITDA/(Interest + Debt)) 1.43 0.84 0.93 1.18
Profitability Ratios
Margin Ratios
Gross Profit Margin (% GPM) Gross Profit/Revenue 7.66 8.31 14.67 13.69
Net Profit Margin (% NPM) Net Income/Revenue 4.48 1.86 6.42 8.24
Operating Profit Margin (% OPM) Operating Profit/Revenue 5.82 3.30 9.07 10.49
Return Ratios
Return on Asset (% ROA) Net Income/Average Total Assets 10.86 5.01 8.30 10.82
Return on Equity (% ROE) Net Income/Average Shareholders' Equity 19.40 8.80 13.88 18.70
Return on Capital Employed (% ROCE) EBIT/Capital Employed 21.03 11.03 13.65 17.08
Return on Owner's Equity (%) (Net Income - Non-controlling Interest)/Average Shareholders' Equity 13.65 2.85 7.81 14.69
Degrees of Leverages
Degree of Operating Leverage (DOL) % Change in EBIT/% Change in Sales 2.17 (0.98) (1.03) 1.91
Degree of Financial Leverage (DFL) % Change in EPS/% Change in EBIT (or, EBIT/EBT) 0.48 1.75 1.67 1.39
Combined Leverage (CL) % Change in EPS/% Change in Sales (or, DOL * DFL) 1.04 (1.71) (1.72) 2.66
Valuation Ratios
Price-to-Earning (P/E) Ratio CMP of the Share/EPS 26.92 32.38 40.74 19.18
Market-to-Book (M/B) Ratio CMP of the Share/BVPS (or, Common Shareholder's Equity/Market Cap) 4.63 2.49 4.96 3.26
Price-to-Sales (P/S) Ratio Market Capitalization/Annual Sales 1.21 0.60 2.62 1.58
EV/EBITDA Ratio Enterpise Value/EBITDA 22.15 21.30 30.72 16.43
Others
Cash Conversion Cycle DIO + DSO - DPO (7.43) (6.74) 1.33 8.84
Capital Gearing Ratio Fixed Interest Bearing Debt/Total Equity 0.13 0.12 0.17 0.17
Proprietory Ratio Shareholders' Funds/Total Asset 0.57 0.57 0.63 0.54
Payout Ratio DPS/EPS 0.12 0.65 0.20 0.57
Dividend Yield Annual Dividend/CMP of the Share 15.16 67.83 16.81 105.13
Earnings Per Share (EPS) Net Income/Average Shares Outstanding 7.55 3.94 7.10 10.97
Operating Ratio (OER) (COGS + Operating Expense)/Net Sales 0.92 0.92 0.85 0.86

Figure 14 – Financial Ratio

23
4.9 Working Capital Schedule-

The provided working capital schedule for Aegis Logistics Limited offers a detailed view of the
company's working capital components, including trade receivables, inventories, other current
assets, trade payables, short-term borrowings, and other current liabilities, along with the
corresponding changes in each component over multiple years.

Aegis Logistic Limited

Working Capital Schedule
Actual Forecasted
Particulars (INR in crores): FY 2017-18 FY 2018-19 FY 2019-20 FY2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Total Income 4,79,931.09 5,62,400.98 7,21,609.24 3,88,032.63 4,66,972.22 5,60,366.66 6,72,440.00 8,06,928.00 9,68,313.60 11,61,976.31
Cost of Goods Sold 4,40,157.51 5,08,950.43 6,52,315.69 3,21,271.76 3,94,820.77 4,70,708.00 5,64,849.60 6,77,819.52 8,13,383.42 9,76,060.10
WORKING CAPITAL BALANCE
Trade Receivables 34,694.28 22,852.23 45,403.14 9,415.35 73,834.26 50,663.29 60,795.94 72,955.13 87,546.16 1,05,055.39
Inventories 2,599.81 3,379.94 4,211.01 5,238.80 9,064.06 9,211.51 11,053.81 13,264.57 15,917.48 19,100.98
Other Current Assets 8,244.35 6,516.08 6,836.19 8,729.33 16,357.76 19,612.83 23,535.40 28,242.48 33,890.98 40,669.17
Total Non-Cash Current Assets 45,538.44 32,748.25 56,450.34 23,383.48 99,256.08 79,487.63 95,385.15 1,14,462.18 1,37,354.62 1,64,825.54
Trade Payables 37,883.67 48,533.20 53,981.80 7,467.00 67,468.71 46,220.60 55,432.11 66,485.92 79,750.49 95,667.97
Short-term Borrowings 22,046.86 12,995.42 16,704.70 23,071.08 31,840.61 31,840.61 31,840.61 31,840.61 31,840.61 31,840.61
Other Current Liabilities 2,723.03 2,652.11 - 4,056.64 3,892.07 3,892.07 3,892.07 3,892.07 3,892.07 3,892.07
Total Non-Cash Current Liabilities 62,653.56 64,180.73 70,686.50 34,594.72 1,03,201.39 81,953.28 91,164.79 1,02,218.60 1,15,483.17 1,31,400.65
Net Working Capital (17,115.12) (31,432.48) (14,236.16) (11,211.24) (3,945.31) (2,465.66) 4,220.36 12,243.58 21,871.45 33,424.89
Net Increase/Decrease in Working Capital (14,317.36) 17,196.32 3,024.92 7,265.93 1,479.65 6,686.02 8,023.22 9,627.87 11,553.44
Purchases 5,09,730.56 6,53,146.76 3,22,299.55 3,98,646.03 4,70,855.44 5,66,691.90 6,80,030.28 8,16,036.33 9,79,243.60

Note:
Cash Flow from Individual Line Items (INR in crores):
Trade Receivables 11,842.05 (22,550.91) 35,987.79 (64,418.91) 23,170.97 (10,132.66) (12,159.19) (14,591.03) (17,509.23)
Inventories (780.13) (831.07) (1,027.79) (3,825.26) (147.45) (1,842.30) (2,210.76) (2,652.91) (3,183.50)
Other Current Assets 1,728.27 (320.11) (1,893.14) (7,628.43) (3,255.07) (3,922.57) (4,707.08) (5,648.50) (6,778.20)
Trade Payables 10,649.53 5,448.60 (46,514.80) 60,001.71 (21,248.11) 9,211.51 11,053.81 13,264.57 15,917.48
Short-term Borrowings (9,051.44) 3,709.28 6,366.38 8,769.53 - - - - -
Other Current Liabilities (70.92) (2,652.11) 4,056.64 (164.57) - - - - -
Increase/Decrease in Working Capital (14,317.36) 17,196.32 3,024.92 7,265.93 1,479.65 6,686.02 8,023.22 9,627.87 11,553.44

Check 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Figure 15 – Working Capital Schedule

24
4.10 Asset Schedule

The provided asset schedule for Aegis Logistics Limited offers insights into the company's capital
expenditures (CapEx), its composition of fixed assets, depreciation and amortization (D&A) expenses, and
the relationship between these financial metrics over multiple fiscal years. An asset valuation schedule refers
to a detailed listing of a company's assets along with their values. It is an important part of the valuation
process used to determine the total value of the business. An asset schedule usually contains different asset
classes.

Aegis Logistic Limited

Asset Schedule

Particulars (INR in crores): FY 2017-18 FY 2018-19 FY 2019-20 FY2020-21 FY 2021-22

Net Sales 4,79,931.09 5,62,400.98 7,21,609.24 3,88,032.63 4,66,972.22
CapEx 84,663.71 9,711.49 43,872.20 8,379.73 74,439.21
17.64% 1.73% 6.08% 2.16% 15.94%
Property, Plant and Equipments (PP&E) 1,27,983.96 1,32,649.84 1,69,659.16 1,70,886.68 2,37,396.41
Intangible Assets 254.07 224.89 211.65 185.37 184.25
Total Fixed Assets 1,28,238.03 1,32,874.73 1,69,870.81 1,71,072.05 2,37,580.66
Depreciation and Amortization (D&A) 3,431.10 5,054.16 6,871.44 7,159.97 7,935.63
% of D&A to Total Fixed Assets 2.68% 3.80% 4.05% 4.19% 3.34%
% of PP&E to Total Fixed Assets 99.80% 99.83% 99.88% 99.89% 99.92%
% of Intangible Assets to Total Fixed Assets 0.20% 0.17% 0.12% 0.11% 0.08%
Depreciation 3,424.30 5,045.61 6,862.88 7,152.21 7,929.48
Amortization 6.80 8.55 8.56 7.76 6.15

Figure 16 – Asset Schedule

25
4.11 Debt Schedule

The debt schedule is a summary of the company's outstanding debt obligations over time. It gives a
detailed breakdown of the company's debts.

The provided debt schedule for Aegis Logistics Limited offers insights into the company's
borrowings, both secured and unsecured, its long-term and short-term borrowings, and the interest
expenses associated with these debts over multiple fiscal years.

Aegis Logistics Limited

Debt Schedule

Particulars (INR in crores): FY 2017-18 FY 2018-19 FY 2019-20 FY2020-21 FY 2021-22

Secured Borrowings
Deferred Payment Liabilities:
Loan from bank 6,195.83 5,656.98 4,850.00 11,231.97 6,427.55
Total Secured Borrowings (A) 6,195.83 5,656.98 4,850.00 11,231.97 6,427.55
Unsecured Borrowings
Deferred Payment Liabilities:
Loan from bank - - - - -
Total Unsecured Borrowings (B) - - - - -
Long-term Borrowings (A+B) 6,195.83 5,656.98 4,850.00 11,231.97 6,427.55
Short-term Borrowings 22,046.86 12,995.42 16,704.70 23,071.08 31,840.61
Total Borrowings 28,242.69 18,652.40 21,554.70 34,303.05 38,268.16
Interest Expense 1,354.32 2,497.66 3,022.34 1,619.11 1,769.80
Interest as % of Debt 4.80% 13.39% 14.02% 4.72% 4.62%

Note:
CAGR of Secured Borrowings 0.01
CAGR of Unsecured Borrowings 0

Figure 17 – Debt Schedule

26
4.12 Discounted Cash Flow (DCF) Valuation-

• Discounted cash flow analysis is used to calculate the value of an investment based on its future
cash flows.

• The present value of expected future cash flows is obtained using the expected discount rate.

• If the DCF is greater than the current cost of the investment, the opportunity can generate positive
returns and be profitable.

• Companies typically use the weighted average cost of capital (WACC) as a discount rate because
it corresponds to the expected return for shareholders.

• A disadvantage of DCF is that it relies on estimates of future cash flows, which may turn out to
be inaccurate.

Aegis Logistics Limited

Discounted Cash Flow (DCF) Valuation
Actual Forecasted
Particulars (INR in crores): FY 2017-18 FY 2018-19 FY 2019-20 FY2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Free Cash Flow to Firm (FCFF) / Unlevered Cash Flow Model
Net Income 21,380.40 25,210.61 13,397.19 24,922.37 38,494.18 53,571.09 64,599.10 77,832.72 93,713.06 1,12,769.47
Add: Depreciation and Amortization 3,431.10 5,054.16 6,871.44 7,159.97 7,935.63 5,603.67 6,724.40 8,069.28 9,683.14 11,619.76
Add: Interest*(1-Tax Rate) 1,287.98 2,082.77 1,950.79 1,202.37 1,443.40 1,568.99 1,568.99 1,568.99 1,568.99 1,568.99
Less: Changes in Working Capital (14,317.36) 17,196.32 3,024.92 7,265.93 1,479.65 6,686.02 8,023.22 9,627.87 11,553.44
Less: CapEx 84,663.71 9,711.49 43,872.20 8,379.73 74,439.21 84,055.00 1,00,866.00 1,21,039.20 1,45,247.04 1,74,296.45
Total FCFF/Unlevered Cash Flow (58,564.23) 8,318.70 (4,456.46) 27,929.90 (19,300.07) (21,831.60) (21,287.49) (25,544.98) (30,653.98) (36,784.77)
Terminal Value (TV) (10,17,214.46)
Valuation Date 19-May-23
Fiscal Year End Date after Valuation Date 31-Mar-23
Number of Years to Discount 0.14 1.14 2.14 3.14 4.14
Discount Rate (WACC) 9.83%
Present Value Factor 0.9873 0.8989 0.8184 0.7452 0.6785
Present Value of FCFF (21,554.66) (19,135.79) (20,907.11) (22,842.40) (24,956.82)
Present Value of Terminal Value (6,90,134.41)
Enterprise Value (7,99,531.19)
Less: Debt 1,91,340.80
Add: Cash and Cash Equivalent (13,64,362.46)
Equity Value (23,55,234.46)
Number of Shares 3,510.45
Share Price (670.92)

Figure 18 – DCF Valuation

27
4.13 Peer Ratio

Companies are grouped into peer groups for ratio analysis as part of fundamental analysis. This
allows researchers to determine the solvency, efficiency and profitability of a particular company.
For this purpose, the previous and current financial statements of each company are reviewed and
compared with each other.

4.13.1 Market Capitalization

Company Name: Market Cap (INR in Rank

lakhs)

Aegis Logistic Limited 19,20,360.00 5

Indian oil corporation 1,29,63,296.84 2
Bharat petroleum 81,46,628.68 3
Hindustan Petroleum Corp 38,62,707.14 4
ONGC 1,98,26,520.03 1

Table 1 – Market Capitalization

Market Capitalization (INR in lakhs)

4%
Aegis Logistic Limited

28% Indian oil corporation

43%
Bharat petroleum

Hindustan Petroleum Corp

ONGC

8% 17%

Graph 1 – Market Capitalization

In this table and pie chart, we can see the market cap of only those companies that are selected and
we have ranked them as per their values. We can see that ONCG has the highest market capitalization.

28
4.13.2 Asset Turnover Ratio

Company Name: Asset Turnover Ratio Rank

Aegis Logistic Limited 1.31 4

Indian oil corporation 1.61 3
Bharat petroleum 2.33 2
Hindustan Petroleum Corp 2.46 1
ONGC 0.25 5

Table 2 - Asset Turnover Ratio

Asset Turnover Ratio

2.70 2.46
2.33
2.40
2.10
1.80 1.61
1.50 1.31
1.20
0.90
0.60
0.25
0.30
-
Aegis Logistic Limited Indian oil corporation Bharat petroleum Hindustan Petroleum ONGC
Corp

Graph 2 - Asset Turnover Ratio

In this table and graph, we can see the asset turnover ratio of only those companies that are selected
and we have ranked them as per their values. The high asset turnover ratio is better for the company
here we can see Hindustan Petroleum Corp has the highest asset turnover ratio.

4.13.3 Current Ratio

Company Name: Current Ratio Rank

Aegis Logistic Limited 1.01 1

Indian oil corporation 0.76 3
Bharat petroleum 0.75 4
Hindustan Petroleum Corp 0.70 5
ONGC 0.83 2
Table 3 - Current Ratio Current Ratio
29
 Current Ratio

ONGC 0.83

Hindustan Petroleum Corp 0.70

Bharat petroleum 0.75

Indian oil corporation 0.76

Aegis Logistic Limited 1.01

- 0.20 0.40 0.60 0.80 1.00 1.20

Graph 3 - Current Ratio

In this table and graph, we can see the current ratio of only those stocks that are selected and I have
ranked them according to their ratio. The higher the current ratio better the company. Aegis Logistic
Limited has the highest current ratio.

4.13.4 D/E Ratio

Company Name: D/E Ratio Rank

Aegis Logistic Limited 0.18 1

Indian oil corporation 0.93 3
Bharat petroleum 1.08 4
Hindustan Petroleum Corp 1.09 5
ONGC 0.42 2

Table 4 - D/E Ratio

Debt-to-Equity (D/E) Ratio

ONGC 0.42

Hindustan Petroleum Corp 1.09

Bharat petroleum 1.08

Indian oil corporation 0.93

Aegis Logistic Limited 0.18

- 0.20 0.40 0.60 0.80 1.00 1.20

Graph 4 - D/E Ratio

30
In this table and graph, we can see the Debt-to-Equity ratio of only those stocks that are selected and
I have ranked them according to their ratio. The lower the Debt-to-Equity ratio better the company.
Aegis Logistic Limited has the lowest Debt-to-Equity ratio.

4.13.5 Interest Coverage Ratio

Company Name: Interest Coverage Rank

Ratio

Aegis Logistic Limited 27.67 1

Indian oil corporation 9.37 4
Bharat petroleum 8.22 5
Hindustan Petroleum Corp 12.72 3
ONGC 15.47 2

Table 5 - Interest Coverage Ratio

Interest Coverage Ratio

30.00

25.00

20.00 27.67 15.47

15.00

12.72
10.00
9.37
8.22
5.00

-
Aegis Logistic Limited Indian oil corporation Bharat petroleum Hindustan Petroleum ONGC
Corp

Graph 5 - Interest Coverage Ratio

In this table and graph, we can see the Interest Coverage Ratio of only those stocks that are selected
and I have ranked them according to their ratio. The higher the Interest Coverage Ratio better the
company. Aegis Logistic Limited has the highest Interest Coverage Ratio.

31
4.13.6 Return on Assets

Company Name: ROA % Rank

Aegis Logistic Limited 10.82 1

Indian oil corporation 6.11 4
Bharat petroleum 6.22 3
Hindustan Petroleum Corp 4.71 5
ONGC 7.77 2
Table 6 - Return on Assets

Return on Assets (% ROA)

12.00
10.00
8.00
6.00
4.00
2.00
-
Aegis Logistic Indian oil Hindustan
Bharat petroleum ONGC
Limited corporation Petroleum Corp
Series1 10.82 6.11 6.22 4.71 7.77

Graph 6 - Return on Assets

In this table and graph, we can see the Return on Assets of only those stocks that are selected and I
have ranked them according to their ratio. The higher the Return on Assets better the company. Aegis
Logistic Limited has the highest Return on Assets.

4.13.7 Return on Equity

Company Name: ROE % Rank

Aegis Logistic Limited 18.70 3

Indian oil corporation 18.79 2
Bharat petroleum 22.50 1
Hindustan Petroleum Corp 17.61 4
ONGC 17.54 5

Table 7 - Return on Equity

32
 Return on Equity (% ROE)
25.00

20.00

15.00

10.00

5.00

-
Indian oil Hindustan Petroleum
Aegis Logistic Limited Bharat petroleum ONGC
corporation Corp
Series1 18.70 18.79 22.50 17.61 17.54

Graph 7 - Return on Equity

In this table and graph, we can see the Return on Equity of only those stocks that are selected and I
have ranked them according to their ratio. The higher the Return on Equity better the company.
Bharat petroleum has the highest Return on Equity.

4.13.8 Return on Capital Employed

Company Name: ROCE% Rank

Aegis Logistic Limited 17.08 2

Indian oil corporation 17.61 1
Bharat petroleum 15.28 3
Hindustan Petroleum Corp 10.43 5
ONGC 13.19 4

Table 8 - Return on Capital Employed

Return on Capital Employed (% ROCE)

20.00

15.00

10.00

5.00

-
Hindustan Petroleum
Aegis Logistic Limited Indian oil corporation Bharat petroleum ONGC
Corp
Series1 17.08 17.61 15.28 10.43 13.19

Graph 8 - Return on Capital Employed

33
In this table and graph, we can see the Return on Capital Employed of only those stocks that are
selected and I have ranked them according to their ratio. The higher the Return on Capital Employed
better the company. Indian oil corporation has the highest Return on Capital Employed.

4.13.9 Price-to-Earnings Ratio

Company Name: P/E Ratio Rank

Aegis Logistic Limited 19.18 5

Indian oil corporation 4.00 1
Bharat petroleum 6.56 4
Hindustan Petroleum Corp 4.20 2
ONGC 4.60 3

Table 9 - Price-to-Earnings Ratio

Price-to-Earning (P/E) Ratio

ONGC 4.60

Hindustan Petroleum Corp 4.20

Bharat petroleum 6.56

Indian oil corporation 4.00

Aegis Logistic Limited 19.18

- 5.00 10.00 15.00 20.00 25.00

Graph 9 - Price-to-Earnings Ratio

In this table and graph, we can see the Price-to-Earnings Ratio of only those stocks that are selected
and I have ranked them according to their ratio. The lower the Price-to-Earnings Ratio better the
company. Indian oil corporation has the lowest Price-to-Earnings Ratio.

34
4.13.10 Price-to-Book Value

Company Name: P/B Ratio Rank

Aegis Logistic Limited 4.87 5

Indian oil corporation 0.82 2
Bharat petroleum 1.47 4
Hindustan Petroleum Corp 0.92 3
ONGC 0.79 1

Table 10 - Price-to-Book Value

Price-to-Book Value (P/B) Ratio

ONGC 0.79

Hindustan Petroleum Corp 0.92

Bharat petroleum 1.47

Indian oil corporation 0.82

Aegis Logistic Limited 4.87

- 1.00 2.00 3.00 4.00 5.00 6.00

Graph 10 - Price-to-Book Value

In this table and graph, we can see the Price-to-Book Value Ratio of only those stocks that are
selected and I have ranked them according to their ratio. The lower the Price-to-Book Value Ratio
better the company. Indian oil corporation has the lowest Price-to-Book Value Ratio.

35
4.13.11 CONSOLIDATED RANKS

Market Asset Interest

Current D/E P/E P/B
Company Name: Cap (INR Turnover Coverag ROA % ROE % ROCE%
Ratio Ratio Ratio Ratio
in lakhs) Ratio e Ratio
Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank Total Ranks Rank
Aegis Logistic Limited 5 4 1 1 1 1 3 2 5 5 28 3
Indian oil corporation 2 3 3 3 4 4 2 1 1 2 25 5
Bharat petroleum 3 2 4 4 5 3 1 3 4 4 33 2
Hindustan Petroleum Corp 4 1 5 5 3 5 4 5 2 3 37 1
ONGC 1 5 2 2 2 2 5 4 3 1 27 4

Figure 19 – Consolidated Ranks

Based on the provided financial ratios, Bharat Petroleum seems to be a reasonable option for
investment, considering its moderate valuation ratios and relatively good ROE.

36
CHAPTER 5. KEY FINDINGS AND CONCLUSION

5.1 FINDINGS

 Bharat Petroleum appears to be a promising investment option in the oil & gas sector. It has
relatively attractive valuation ratios, such as a low Price-to-Earnings (P/E) ratio and a low
Price-to-Book (P/B) ratio. The low P/E ratio suggests that the stock may be undervalued in
the market.
 Bharat Petroleum shows a strong Return on Equity (ROE), indicating that it generates good
returns for its shareholders.
 Hindustan Petroleum Corp also exhibits favourable financial ratios, with a high Asset
Turnover Ratio and a relatively good ROE.
 Hindustan Petroleum Corp ranks high in terms of Interest Coverage Ratio, indicating it has
sufficient earnings to cover interest expenses.
 Investors should exercise caution and conduct their due diligence before making any
investment decisions, considering the inherent risks associated with the stock market and
the volatility of the oil & gas sector.
 Economic and market conditions can change quickly, affecting company performance and
stock values.

37
CONCLUSIONS-

1. Bharat Petroleum (BPCL) stands out as a promising investment option among the selected
companies. It has shown strong financial performance, with high asset turnover, a reasonable
current ratio, and attractive profitability ratios such as ROA, ROE, and ROCE.
2. Aegis Logistic Limited also appears to be a sound investment choice, boasting impressive
financial indicators like a high current ratio, low debt-to-equity ratio, and solid profitability
ratios.
3. Indian Oil Corporation (IOC) and ONGC also demonstrate favorable financial metrics, making
them potential investment candidates for investors seeking exposure to the oil & gas sector.
4. Hindustan Petroleum Corporation Limited (HPCL) shows relatively weaker performance
compared to the other companies, with lower asset turnover and profitability ratios.
5. Valuation of oil & gas companies can be challenging due to the volatile nature of oil & gas prices
and the uncertainty surrounding reserve estimates and project economics. Investors should
carefully consider the risks associated with the industry before making investment decisions.
6. The study of financial ratios and fundamental analysis is crucial for evaluating the financial
health and performance of companies. Investors should take a holistic approach, considering
various financial and operational factors, to make well-informed investment choices.
7. The oil & gas sector in India continues to be a significant player in the energy market, and it is
projected to experience growth in the coming years. Investors interested in this sector should
closely monitor market trends and industry developments to capitalize on potential investment
opportunities.
8. While Bharat Petroleum emerges as a top contender based on the provided financial ratios,
investors should conduct further research, considering qualitative factors and market trends,
before making final investment decisions.

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5.2 LEARNING OUTCOMES

 Financial modelling and valuation require a deep understanding of a company's financial

statements (Income Statement, Balance Sheet, and Cash Flow Statement). This process helps
individuals comprehend the company's historical performance and current financial health.
 Learners gain proficiency in constructing detailed financial models that project a company's
future financial performance based on various assumptions, revenue drivers, cost structures,
and other key variables.
 Financial modelling involves making assumptions about future economic conditions, market
trends, and industry-specific factors. This encourages learners to think critically about the
business environment and develop forecasting skills.
 For investors, financial modelling and valuation assist in evaluating potential investment
opportunities. They can compare the estimated intrinsic value with the current market price
to make informed investment decisions.

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5.3 STRENGTH OF THE STUDY

1. Clear Objective: The research has a well-defined objective, which is to assess the valuation
of companies in the oil & gas sector. The study aims to provide valuable insights for investors
and stakeholders in making informed decisions.
2. Methodology: The research follows a structured research methodology, including data
collection from reliable secondary sources such as financial statements, NSE, BSE, and
Money Control. The use of financial ratios, common size analysis, comparative analysis, and
trend analysis adds rigor to the study.
3. Relevant Factors: The research considers essential factors that influence the valuation of oil
& gas companies, such as financial performance, growth prospects, competitive position, and
industry overview. It examines both quantitative and qualitative aspects, ensuring a
comprehensive assessment.
4. Company Selection: The study carefully selects prominent oil & gas companies in the Indian
market for analysis. By including well-known players, the research provides insights into
significant industry participants.
5. In-Depth Analysis: The research thoroughly analyses financial statements, including balance
sheets, income statements, and cash flow statements. It also evaluates various financial ratios,
which are crucial for understanding a company's financial health and performance.
6. Peer Comparison: The study performs peer comparison to benchmark the selected companies
against each other. This approach allows for a relative assessment, highlighting the strengths
and weaknesses of each company within the industry.
7. Visualization: The research presents data and findings in visual formats, such as tables and
graphs, making it easier to comprehend and interpret the results.
8. Interpretation: The study gives clear data interpretations, outlining the relevance of each
financial statistic and its ramifications for investment decisions.
9. Real-World Relevance: Oil and gas are big businesses that have a large impact on the global
economy. The study tackles the need to comprehend the valuation of businesses in this key
area.

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5.4 LIMITATIONS OF THE STUDY

1. Data Limitations: The study largely depends on secondary data from publicly available
sources, such as financial statements and market data. The accuracy and completeness of the
data are subject to the reporting practices of the companies and the reliability of the sources.
Additionally, some crucial data may not be publicly available, which could impact the
analysis.
2. Limited Sample Size: The study focuses on a specific set of oil & gas companies in the Indian
market. The sample size might not be representative of the entire industry, and the results
may not be applicable to smaller or niche players not included in the analysis.
3. Time Sensitivity: Financial markets and economic conditions are subject to rapid changes,
especially in the oil & gas sector, where prices are influenced by geopolitical events and
supply-demand dynamics. The data used in the research may become outdated, affecting the
relevance of the findings.
4. Forecasting Challenges: Valuation methods, such as DCF analysis, heavily rely on future
cash flow projections. Forecasting future performance in the oil & gas industry can be
challenging due to volatile commodity prices and uncertain geopolitical factors. The
accuracy of projections could impact the overall valuation results.
5. Industry-Specific Factors: The oil & gas industry is unique, with specific risk factors and
complexities. The research might not fully capture industry-specific nuances, such as
regulatory changes, exploration success, and environmental factors that can significantly
influence company valuations.
6. Subjective Elements: Fundamental analysis involves qualitative judgments and assumptions
about the company's future prospects and management's decisions. Different analysts may
arrive at varying conclusions, leading to subjectivity in the valuation process.
7. Non-Financial Factors: The research primarily focuses on financial aspects, but other non-
financial factors, such as corporate governance, company reputation, and brand value, can
also influence company valuations.
8. Limited Scope of Valuation Methods: The study mentions various valuation methods like
DCF, comparable company analysis, and others. However, it may not explore all possible
valuation approaches, leaving out potential insights from alternative methods.
9. External Factors: The valuation of oil & gas companies can also be impacted by external
events beyond the scope of financial analysis, such as changes in government policies,
technological advancements, and global market trends.

41
BIBLIOGRAPHY / REFERRENCES-

 Bentes, Sónia, and Raúl Navas. “The Fundamental Analysis: An Overview.” Int. J Latest

Trends Fin. Eco. Sc, vol. 3, no. 1, 2013. Accessed 30 July 2023.

 Devika, P., & Poornima, D. (2015). Fundamental Analysis as a Method of Share Valuation in

Comparison with Technical Analysis. Journal of Exclusive Management Science, 4(12), 1-8.

 Quirin, J.J., Berry, K.T. and O’Brien, D., 2000. A fundamental analysis approach to oil & gas

firm valuation. Journal of Business Finance & Accounting, 27(7‐8), pp.785-820.

 Patel, Mr. H., & Patel, Prof. (Dr. ) V. (2019). A Study on fundamental analysis of five selected

companies in FMCG sector. International Journal of Creative Research Thoughts (IJCRT), 6.

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Plagiarism Report

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