Nayara Energy Limited (Essar Oil) Delisted Share - Company Overview
Nayara Energy Limited (formerly Essar Oil Limited) is a globally integrated oil refining company that covers the entire hydrocarbon value chain from refining to production and marketing, across segments, including retail. The company has positioned itself to fulfill about 10% of India’s petro products demand. In 2016, Rosneft along with an investment consortium comprising global commodity trading companies Trafigura & UCP Investment Group acquired Essar Oil Limited.
Nayara Energy Limited owns the Vadinar refinery of Gujarat, which is India’s second-largest single site, a state-of-the-art refinery. It constitutes approximately 8% of India’s refining capacity. The Vadinar refinery is one of the most modern and complex refineries in the world having a Nelson Complexity index of 11.8. The refinery has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (BPD). It is capable of processing some of the toughest crudes and yet produces high-quality Euro IV and Euro VI grade products. They are now producing high-quality Bharat Stage (BS-VI) compliant fuels that meet international standards.
The company is known for business across the entire hydrocarbon value chain from refining to retail and is working with a vision to deliver crude to chemicals. Nayara Energy Limited has a well-developed Process Safety Management (PSM) system, which covers the monitoring of multiple vital aspects of the Refinery functions, including Chemical Safety Management, Hazard Identification & Risk Analysis, Management of Change, and Asset Reliability.
Nayara Energy Limited is planning to invest Rs. 1.3 Lakh Crore to expand its capacity from 20 million metric tonnes (MMT) per annum to an additional 26 million metric tonnes (MMT) and a 10.75 million metric tonnes per annum (MMTPA) petrochemical complex. The expansion project is estimated to be completed by 2022 to 2024.
Nayara Energy Delisted Share Details as of March 31, 2024
Nayara Energy Outstanding Shares: |
1,490,561,155 |
Face Value of Nayara Energy Unlisted Share: |
Rs. 10 Per Equity Share |
ISIN of Nayara Energy Unlisted Share: |
INE011A01019 |
Lot Size of Nayara Energy Unlisted Share: |
100 Shares |
Nayara Energy Current Share Price: |
Best in Industry |
PAN Number of Nayara Energy: |
AAACE0890P |
GST Number of Nayara Energy: |
24AAACE0890P1ZF |
Date of Delisting of Nayara Energy |
31-Dec-15 |
Rate of Delisting of Nayara Energy |
Rs. 258.10 |
Reason of Delisitng of Nayara Energy |
SEBI (Delisting of Equity Shares) Regulations 2009 and SEBI (Delisting of equity shares) (Amendments) Regulations 2015. |
Nayara Energy Incorporation Details
Nayara Energy Limited CIN Number |
U11100GJ1989PLC032116 |
Nayara Energy Limited Registration Date |
12-Sep-89 |
Category / Sub-Category of Nayara Energy |
Public Limited Company |
Nayara Energy Registered Office Address |
Khambhalia Post, Dist. Jamnagar, Gujarat - 361305 |
Nayara Energy Registrar & Transfer Agent Address and Contact Details |
Link Intime India Private Limited, C-101, 247 Park, 1 st Floor L.B.S. Marg, Vikhroli (West), Mumbai - 400083 Tel: 022 - 49186270 |
Nayara Energy Principal Business Activities
| Name and Description of main products/services | NIC Code of the Product/ service | % to the total turnover of the company |
| Refining and Marketing | 19201 | 100% |
Particulars of Subsidiary Companies of Nayara Energy
| Name of the Company | % of shares held |
| Nayara Energy Singapore Pte. Limited | 100% |
| Coviva Energy Terminals Limited | 100% |
Shareholding Pattern of Nayara Energy (As of 31-03-2024)
| S. No. | Shareholder's Name | No. of Shares | % of total Shares of the company |
| 1. | Promoters group | 0 | - |
| 2. | Public Shareholding | 1,49,05,61,155 | 100% |
| Total | 1,49,05,61,155 | 100% |
Board of Directors of Nayara Energy
Charles Anthony Fountain (Executive Chairman)
Chin Hwee Tan (Non-Executive Director)
Victoria Cunningham (Non-Executive Director)
Avril Conroy (Non-Executive Director)
Alexander Romanov (Non-Executive Director)
Deepak Kapoor (Independent Director)
Naina Lal Kidwai (Independent Director)
Alexey Lizunov (Non-Executive Director)
Prasad K Panicker (Director & Head of Refinery)
Sachin Gupta (Non-Executive Director)
Andrey Bogatenkov (Non-Executive Director)
Energy Industry Outlook
The Indian oil and gas market is expected to register a CAGR of more than 3% during the forecast period (2022-2027). The COVID-19 pandemic negatively affected the market. The revenue of oil and gas companies declined due to the unexpected lockdown. The demand for diesel, the most used fuel in the country, has fallen due to a significant reduction in traffic volumes on the roads. Factors such as the increasing natural gas pipeline capacity and the increasing demand for petroleum products are expected to drive the Indian oil and gas market during the forecast period. However, a huge dependence on imports of crude oil and natural gas for satisfying domestic demand and high volatility of crude oil prices are expected to hinder the growth of the Indian oil and gas market.
The refining capacity has been growing considerably over the recent past, owing to the expansion of several refinery projects. Therefore, the downstream sector is expected to witness growth during the forecast period.
There have been significant gas hydrate discoveries in the KG Basin. Economically feasible extraction of the gas hydrates may create immense opportunities for the companies, which may become a boom in natural gas production.
Owing to the increase in gas imports, the Indian government is increasing its investments in oil and gas pipelines and LNG terminals across the country. Therefore, the increasing investments in the midstream oil and gas sector are expected to drive the market.
The Indian energy demand is anticipated to grow by 50% in the next two decades. This growth in demand can be attributed to the growing world population and an improvement in living standards in developing countries. Even though new and renewable energy sources are gaining popularity around the world, petroleum fuel remains a major energy source globally. This trend is expected to continue for the next few decades and favors the growth of the oil and gas downstream market.
Nayara Energy Limited Consolidated Balance Sheet (Rs in Millions)
| Particulars | 31-03-2024 | 31-03-2023 |
|---|---|---|
| Non-current assets | ||
| Property, plant and equipment | 4,09,601 | 4,24,411 |
| Capital work-in-progress | 54,210 | 40,533 |
| Goodwill | 1,08,184 | 1,08,184 |
| Other Intangible assets | 271 | 229 |
| Intangible assets under development | - | 15 |
| Right-of-use assets | 13,919 | 12,997 |
| Loans | 290 | 372 |
| Other Financial assets | 788 | 765 |
| Deferred tax assets (net) | - | 36 |
| Non-current tax assets (net) | 2,200 | 2,242 |
| Other non-current Assets | 7,774 | 4,960 |
| Current assets | ||
| Inventories | 1,03,932 | 95,952 |
| Investments | 3,753 | 17,801 |
| Trade receivables | 73,197 | 52,648 |
| Cash and cash equivalents | 17,750 | 72,118 |
| Bank balances other than above | 42,599 | 7,124 |
| Loans | 412 | 327 |
| Other financial assets | 34,106 | 2,179 |
| Other current assets | 4,504 | 5,521 |
| Total Assets | 8,77,490 | 8,48,414 |
| Equity | ||
| Equity share capital | 15,072 | 15,072 |
| Other equity | 4,19,838 | 2,90,259 |
| Total equity | 4,34,910 | 3,05,331 |
| Non-current liabilities | ||
| Borrowings | 81,900 | 1,06,996 |
| Lease liabilities | 15,810 | 14,345 |
| Other financial liabilities | 22,712 | 87,275 |
| Deferred tax liabilities (net) | 74,879 | 74,631 |
| Current liabilities | ||
| Borrowings | 35,952 | 13,429 |
| Lease liabilities | 1,294 | 1,201 |
| Trade payables | 1,17,859 | 1,45,873 |
| Other financial liabilities | 72,856 | 79,444 |
| Other current liabilities | 17,178 | 17,991 |
| Provisions | 1,075 | 819 |
| Current tax liabilities (net) | 1,065 | 1,079 |
| Total Equity and Liabilities | 8,77,490 | 8,48,414 |
Nayara Energy Limited Consolidated Profit & Loss Statement (Rs in Millions)
| Particulars | 31-03-2024 | 31-03-2023 |
|---|---|---|
| Income | ||
| Revenue from operations | 15,50,915 | 13,81,125 |
| Other income | 9,390 | 7,538 |
| Total Income | 15,60,305 | 13,88,663 |
| Expenses | ||
| Cost of raw materials consumed | 9,37,970 | 7,96,728 |
| Excise duty | 2,19,777 | 2,07,257 |
| Purchases of stock-in-trade | 1,32,876 | 1,17,146 |
| Changes in inventory of finished goods, stock-in-trade and work-in-progress | -3,177 | 19,010 |
| Employee benefits expense | 10,435 | 8,349 |
| Finance costs | 22,419 | 23,767 |
| Depreciation, amortisation and impairment expense | 19,982 | 34,012 |
| Other expenses | 55,726 | 57,048 |
| Total expenses | 13,96,008 | 12,63,317 |
| Profit before tax | 1,64,297 | 1,25,346 |
| Current tax expenses | 41,881 | 9,660 |
| Deferred tax expense | -794 | 21,424 |
| Profit for the year | 1,23,210 | 94,262 |
| Other comprehensive income | ||
| Items that will not be reclassified to profit and loss | -87 | -16 |
| Re-measurement (loss) on defined benefit plans | -117 | -21 |
| Income tax effect | 30 | 5 |
| -87 | -16 | |
| Items that will be reclassified to profit and loss | 6,456 | -5,332 |
| Effective portion of cash flow hedges (net) | 8,594 | -7,147 |
| Income tax effect | -2,163 | 1,799 |
| 6,431 | -5,348 | |
| Foreign currency monetary item translation difference account | 34 | 52 |
| Income tax effect | -9 | -13 |
| 25 | 39 | |
| Exchange difference arising on translation of foreign operation | - | -23 |
| - | -23 | |
| Other comprehensive (loss)/income for the year, net of tax | 6,369 | -5,348 |
| Total comprehensive income for the year | 1,29,579 | 88,914 |
| (comprising profit for the year and other comprehensive (loss)/income for the year) | ||
| Earnings per share (Face value Rs.10 per share) | ||
| Basic and Diluted (in Rs.) | 83 | 63 |
Nayara Energy Limited Consolidated Cash Flow Statement (Rs in Millions)
| Particulars | 31-03-2024 | 31-03-2023 |
|---|---|---|
| Cash flow from operating activities | ||
| Profit before tax | 1,64,297 | 1,25,346 |
| Adjustments for: | ||
| Interest income | -6,115 | -1,902 |
| Depreciation, amortisation and impairment expense | 19,982 | 34,012 |
| Loss on disposal/discard of property, plant and equipment (net) | 14 | 187 |
| Gain on investment/financial assets measured at FVTPL | -707 | -524 |
| Gain on re-measurement of leases | -12 | -31 |
| Export obligation deferred income | -61 | -286 |
| Unrealised foreign exchange differences (net) | 576 | 4,488 |
| Mark to market (gain) on derivative contracts (net) | 501 | -660 |
| Expected credit loss (net) | 633 | 1,281 |
| Provision for doubtful debts/ doubtful debt written off | 23 | 1,429 |
| Provision/Liabilities written back | -737 | -115 |
| Finance costs | 22,419 | 23,767 |
| Operating profit before working capital changes | 2,00,813 | 1,86,992 |
| Adjustments for working capital changes: | ||
| Decrease/(increase) in inventories | -7,981 | 27,489 |
| (Increase) in trade and other receivables | -21,778 | -2,554 |
| (Decrease)/increase in trade and other payables | -93,735 | -23,323 |
| Cash generated from operating activities | 77,319 | 1,88,604 |
| Income tax (payment)/refund (net) (including interest) | -42,765 | -8,417 |
| Net cash generated from operating activities | 34,554 | 1,80,187 |
| Cash flow from investing activities | ||
| Payments for property, plant and equipment (including capital work in progress, Intangible assets, Capital advances, Capital creditors and Intangible assets under development) | -18,630 | -37,885 |
| Proceed from sale of property, plant and equipment | 16 | 137 |
| Proceeds for sale / (payments for purchase) of short term investments / Mutual fund (net) | 14,755 | -17,277 |
| Placement of bank deposits | -28,785 | - |
| Encashment bank deposits | 1,997 | - |
| (Placement) / encashment of short term bank deposits (net) | -37,457 | 4,604 |
| Interest received | 4,277 | 1,382 |
| Net cash (used in) investing activities | -63,827 | -49,039 |
| Cash flow from financing activities | ||
| Proceeds from long-term borrowings | 21,658 | 19,001 |
| Repayment of long-term borrowings | -45,899 | -30,364 |
| Proceeds from short-term borrowings | 20,671 | -9,526 |
| Payment of principal portion of lease liabilities | -1,186 | -28,039 |
| Payment of interest on lease liabilities | -1,450 | -2,458 |
| Finance cost paid | -19,350 | -20,695 |
| Net cash (used in) financing activities | -25,556 | -72,081 |
| Net increase/(decrease) in cash and cash equivalents | -54,829 | 59,067 |
| Net exchange differences on foreign currency bank balances | - | 78 |
| Cash and cash equivalents at the beginning of the year | 72,058 | 12,991 |
| Cash and cash equivalents at the end of the year | 17,229 | 72,136 |
Here is a summary of the Cash Flow Statement for the years 2024 and 2023:
Cash Flow from Operating Activities:
The company generated a net cash inflow from operating activities amounting to ₹34,554 million, a significant decline from the previous year 's inflow of ₹1,80,187 million. Despite a notable increase in profit before tax to ₹1,64,297 million from ₹1,25,346 million, the cash flow was negatively impacted by adjustments and changes in working capital. Key adjustments include a substantial decrease in depreciation and amortization expense to ₹19,982 million from ₹34,012 million, and changes in foreign exchange and derivative contract valuations. The company also experienced a large increase in working capital needs, with a significant decrease in inventories and an increase in trade and other receivables. The decrease in trade and other payables further contributed to the reduction in cash generated from operations. Additionally, the company had higher income tax payments of ₹42,765 million compared to ₹8,417 million in the previous year, further affecting the net cash from operating activities.
Cash Flow from Investing Activities:
In investing activities, the company reported a net cash outflow of ₹63,827 million, compared to an outflow of ₹49,039 million in 2023. This increase in cash outflow is primarily due to higher capital expenditures. Payments for property, plant, and equipment, including capital work in progress and intangible assets, amounted to ₹18,630 million, down from ₹37,885 million the previous year. However, there was a significant placement of bank deposits totaling ₹28,785 million, coupled with net encashment of short-term deposits of ₹37,457 million. These movements, along with lower proceeds from the sale of property, plant, and equipment, and higher interest received, contributed to the overall cash outflow from investing activities.
Cash Flow from Financing Activities:
The cash flow from financing activities resulted in a net cash outflow of ₹25,556 million, an improvement over the previous year 's outflow of ₹72,081 million. This positive change is attributed to lower repayments of long-term borrowings, which amounted to ₹45,899 million compared to ₹30,364 million the previous year. The company also saw a significant increase in short-term borrowings of ₹20,671 million. Payments for lease liabilities and interest on lease liabilities were substantially lower than in the prior year, which improved the overall financing cash flow. However, finance costs paid remained high, amounting to ₹19,350 million.
Net Increase/(Decrease) in Cash and Cash Equivalents:
Overall, the company experienced a net decrease in cash and cash equivalents of ₹54,829 million, a stark contrast to the increase of ₹59,067 million in the previous year. This decrease was driven by the significant outflows in investing and financing activities. The cash and cash equivalents at the end of the year dropped to ₹17,229 million from ₹72,136 million at the beginning of the year. This decline reflects the substantial outflows and adjustments made during the year, despite the inflows generated from operations.
Financial Ratios of Nayara Energy Limited
| Particulars | 2024 | 2023 |
|---|---|---|
| Current ratio | 1.16 | 0.96 |
| Debt Equity Ratio | 0.2 | 0.24 |
| Debt Service Coverage ratio | 9.9 | 3.67 |
| Return on Equity (%) | 32.57% | 36.62% |
| Inventory Turnover ratio | 25 | 32 |
| Trade Receivables Turnover ratio | 15 | 14 |
| Trade Payables Turnover ratio | 45 | 63 |
| Net Capital turnover ratio | 40 | - |
| Net Profit Margin (%) | 7.82% | 6.96% |
| Return on Capital Employed (%) | 37.18% | 43.25% |
| Retun on Investment (%) | 6.66% | 5.96% |
Here is a summary of the financial and operational metrics for The Calcutta Stock Exchange Limited for the year 2024 and 2023:
Current Ratio:
The current ratio increased to 1.16 in 2024 from 0.96 in 2023. A current ratio above 1 is generally considered healthy, as it implies that the company has more current assets than current liabilities.
Debt Equity Ratio:
The debt equity ratio decreased to 0.2 in 2024 from 0.24 in 2023. This reduction reflects a lower proportion of debt relative to equity, indicating that the company is less reliant on borrowed funds to finance its operations. A lower debt equity ratio suggests improved financial stability and reduced financial risk.
Debt Service Coverage Ratio:
The debt service coverage ratio improved significantly to 9.9 in 2024 from 3.67 in 2023. This ratio measures the company’s ability to service its debt obligations from its operating income. A higher ratio indicates that the company generates ample cash flow to cover its debt payments, which reflects strong financial health and a reduced risk of default.
Return on Equity (ROE):
ROE slightly decreased to 32.57% in 2024 from 36.62% in 2023. Despite the decline, the company continues to generate a high return on shareholders ' equity, indicating effective use of equity capital to generate profits. This drop might be due to increased equity or slightly lower profitability, but the overall performance remains robust.
Inventory Turnover Ratio:
The inventory turnover ratio decreased to 25 in 2024 from 32 in 2023. This decline suggests that the company is holding onto inventory for a longer period before selling it. While a lower ratio can indicate slower sales or overstocking, it could also reflect strategic changes in inventory management.
Trade Receivables Turnover Ratio:
The trade receivables turnover ratio improved to 15 in 2024 from 14 in 2023. This increase indicates that the company is more efficient in collecting receivables, as it takes less time to convert receivables into cash. Better receivables management enhances liquidity and reduces the risk of bad debts.
Trade Payables Turnover Ratio:
The trade payables turnover ratio decreased to 45 in 2024 from 63 in 2023. This decline indicates that the company is taking longer to pay its suppliers. While this can improve cash flow in the short term, it may also strain supplier relationships or result in missed discounts.
Net Capital Turnover Ratio:
The net capital turnover ratio of 40 for 2024 (with no data for 2023) reflects the company 's efficiency in using its net capital to generate sales. A higher ratio indicates more effective utilization of capital in generating revenue. Without a comparative figure for 2023, this data shows a strong performance in leveraging net capital.
Net Profit Margin:
The net profit margin increased to 7.82% in 2024 from 6.96% in 2023. This rise indicates that the company is improving its profitability relative to sales. A higher net profit margin reflects better cost management and pricing strategies, leading to increased profitability.
Return on Capital Employed (ROCE):
ROCE decreased to 37.18% in 2024 from 43.25% in 2023. This reduction suggests a decrease in the efficiency of using capital employed to generate profits. Despite the decrease, the ROCE remains high, indicating that the company is still effectively utilizing its capital, though not as efficiently as in the previous year.
Return on Investment (ROI):
The return on investment increased to 6.66% in 2024 from 5.96% in 2023. This improvement indicates that the company’s investments are yielding better returns. A higher ROI demonstrates effective investment strategies and efficient use of resources to generate profit.
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