A SUMMER PROJECT ON COMPARATIVE ANALYSIS OF PROFITABILITY OF PETRONET & AEGIS LOGISTICS COMPANY
Hani Chatwani
Student of Gujarat University || Animation Department || IMBA Financial Services
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Summer Project Report
On
“Comparative Analysis of Profitability of Petronet & Aegis Logistics Company”
Submitted for partial fulfilment of requirement for the award degree
Of
Bachelor of Business Administration
Year 2022-2027
Supervision by
Dr. Rajesh Khatri
Department
Department of Animation, IT IMS & Mobile Applications
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Submitted by
Hani Chatwani
Enrollment no.:2022233100007
Semester: 3
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DECLARATION
I the undersigned solemnly declare that the report of the project work entitled “ Comparative Analysis Of Profitability of Petronet & Aegis Logistics Company? ” is based on my own work carried out during the course of my study under the supervision of ?Dr. Rajesh Khatri.
I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.
Signature of student
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?Name of the candidate
Hani Chatwani
Enrollment no.:
2022233100007
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CERTIFICATE
On the basis of project report submitted by “HANI CHATWANI” , student of bachelor of business Administration , I hereby certify that the project report “Comparative Analysis Of Profitability of Petronet & Aegis Logistics Company ” which is submitted to the Department of????????????????????????????????????????????????????????????????????? in partial fulfilment of requirement for the award of the degree of Bachelor of? Business Administration is an original contribution with existing knowledge and faithful record of work carried out by her under my guidance and supervision. To the best of my knowledge this work has not been submitted in part or full for any Degree or Diploma to this University or elsewhere.
Date:
Examiner signature:
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Name: Dr. Rajesh Khatri
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ACKNOWLEDGEMENT
Through this acknowledgement I express my sincere gratitude towards all those people who helped me in this project, which has been a learning experience. This space wouldn’t be enough to extend my warm gratitude towards my project guide “Dr. Rajesh Khatri sir”? ????????????????????????????????????????????????for efforts in coordinating with my work and guiding in right direction.? I am thankful to our head of department “Aavesh sir and Milind sir” for giving me this opportunity to undertake this project. I also wish to express my gratitude to my parents as well as my family members whose blessings and support always helped me and I would like to express my sincere thanks to all my friends and others who helped me directly or indirectly during this project work.
Place:
Ahmedabad
Student name:
Hani Chatwani
Date:
Enrollment no.:
2022233100007
?Chapter 1- Introduction
1.1-????????? Overview Of Industry
1.2-????????? Company profile
Chapter 2- Literature Review
Chapter 3- Research Methodology
3.1- Objective of study
3.2- Limitations of the study
3.3- Data collection
3.4- Sample size
3.5- Research design
Chapter 4- Data Analysis
?Chapter 5 – Conclusion, Findings and references
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Overview of oil and gas Storage & Transportation sector
https://www.statista.com/topics/8216/global-oil-and-gas-transportation-industry/ ( source of collected data)
The roots of Oil and Gas industry in India are one and a half century old and can be traced back to the year 1889, itself when the oil deposits in the country were first discovered near the town of Digboi in the state of Assam. The foundation of the natural gas industry in India was set in the year 1960s with the discovery of gas fields in Indian states of Assam and Gujarat.? The Natural gas industry got boosted actually with the discovery of large reserves in South Basin fields by ONGC in? 1970s. Until 1970’s, production of petroleum and the exploration of new locations for extraction of petroleum were mainly restricted to north-eastern state in India. However, there was a turnaround in the Indian petroleum industry when Industrial Policy Resolution in 1956 was passed that emphasized on goal of growth and promotion of industries in India. In a macro perspective, the petroleum industry has a noteworthy role to play in turning the Indian economy from an Agrarian Economy to an Industrial Economy. Oil and gas are the most important commodities within the energy and chemical industry.? However, consumer markets are not always overlapping with producing regions, transportation, especially across continents and seas. The two most common modes of moving crude oil, oil products and natural gas is via tanker, ships and pipelines. At the same time, lengthening supply chains increase the industry’s challenges, adding upward pressure on costs. The cost of failure can be significant for both local environments and for operating permits and licenses to launch new projects.
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Petronet LNG - Wikipedia (Source of Collected Data)
The government of India, formed PETRONET LNG LIMITED as an Indian oil and gas company to import Liquified Natural Gas (LNG). PLL company established on April 2, 1998. The Headquarter is located in New Delhi, India.? Petronet LNG Limited has set up the country's first LNG receiving terminal in Gujarat and Kerala.?There are various services provided by PLL, like regasification, storage and reloading, gassing-up facilities, etc. Petronet LNG Limited, one of the fastest growing world class companies in the Indian energy sector, has set up the countries first LNG receiving and regasification terminal at Dahej, Gujarat and another terminal at Kochi, Kerala. Petronet Terminals handle around one third of LNG imports in India. Formed as a Joint Venture Company by the Government of India to import LNG and set up LNG terminals in the country. It involves India leading oil and natural gas industry player. The Company Promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).? The construction of second LNG taker named Indhan commenced with the steel cutting in 6th May of the year 2003. The Company successfully commissioned India’s first LNG receiving and regasification terminal at Dahej in February of the year 2004.
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Petronet LNG plans Kochi terminal
Petronet LNG Terminal In Bangladesh
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Owner: Government of India
Chairman: Tarun Kapoor (Non-Executive Chairman) Akshay Kumar Singh (MD amp; CEO)
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Company - Aegis (aegisindia.com) (Source of Collected Data)
Aegis Logistics Ltd. is India’s leading integrated Oil, Gas & Chemical Logistics company and one of India’s top Importers and Handlers of LPG amongst private players.
Aegis Group was founded in 1956 and its headquarter is ?in Mumbai. It is a publicly traded company listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). As a dominant parallel marketer of Liquefied Petroleum Gas (LPG), Aegis has a robust presence in India. The company has a strong spread of Autogas dispensing Retail Outlets along with a wide network of distributors who sell LPG Cylinders and Appliances to Domestic, Commercial, and Industrial customers. Aegis also provides LPG Installation and Aegis LPG is known and respected for commitment to quality, reliability, safety and assured supplies at all times.
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Mumbai Gas Terminal
Owner: Kapoor Chandaria?
Chairman: Raj K. Chandaria
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·?????? Aditya Prasad Sahoo (2020), “An Analysis on Liquidity Status of ONGC”, In his Research Paper he Explains that Cash is regarded as the life blood of a business enterprise. In the modern oriented economy, finance is one of the basic foundations of all kinds of economics activities .Finance statements are prepared primary for decision - making .They play a dominant role in setting the frame work and managerial conclusion and can be drawn from these statements is of immense use in decision- making through analysis and interpretation of financial statements .As said earlier cash is said to be life blood of any business, every business under taking needs liquidity for its smooth working, it has to raise funds from the cheapest and risky source to utilize this in most effective manner . So every company will be interested in knowing its liquidity status or position. This paper analyses overall liquidity condition and concert of the company.
·?????? Saptrishiroy & Dr. Annesha Saha (2019), “Financial Performance of ONGC Tripura Assets and ONGC India- A Comparative Study. As we know Tripura is one of the main exertion centres of ONGC in the North-Eastern region. Tripura is the frontal forth belt of the Assam basin situated between the regions of commercial Oil & Gas reserves of upper Assam and the Gas bearing Sylhet region of Bangladesh. The study is based on the ONGC Tripura Asset which is in operation at Agartala. The study aims to analyse the performance and the financial stability of the ONGC Tripura asset, and also compares the performance growth level with the ONGC India. The study is based on three years of data for the financial year 2015-16 to 2017-18. The outcome of the study discusses the financial performance of the organisations resulting from ratio analysis.
·?????? Tanya Varshney and Dr. Rohit Rajwanshi (2019) “A financial study analysing liquid ratios & profitability ratios for oil and natural gas corporation(ongc) limited. This study is an attempt to establish relationship between several working capital ratios and profitability position of ONGC Ltd. using multiple regression analysis. The multiple regression test has been employed to study the profitability of ONGC ltd in terms of its working capital ratios. The study covers secondary data from ONGC Ltd. annual reports from 2008 to 2018. Ratio analysis has been done to analyse and compare the performance trends over several years. Different ratios such as current ratio (CR), quick ratio (QR), Inventory turnover ratio (ITR), current assets to total asset ratio (CATAR), current assets to sales ratio (CASR), return on investment (ROI), cash to sales ratio (CTS), Absolute cash ratios (ACR), debtors turnover ratio (DTR), Working Capital Turnover Ratio (WCTR) are being calculated in order to study the financial position of ONGC Ltd and also to find the relation of each ratio on one another using correlation test. The correlation results depicted slight positive correlation among working capital ratios & profitability ratios such as CR & ROI, QR & ROI, QR & WCTR. The results goes beyond literature but still many studies support the positive relationship among working capital ratios and profitability ratios.
·?????? Srinivasan (2018) “A Study on Financial Analysis of Vellore Cooperative Sugar Mills at Ammundi Vellore. In this study author studied financial analysis of Vellore Cooperative Sugar Mills using various ratios.
·?????? Pudi, P. (2018) A Study on financial analysis through comparative statements with special reference to HPCL. In this research paper researcher compare the financial statements of HPCL Limited.
·?????? Kumar Aditya (2019) “An appraisal of financial solvency of ONGC”. From the study of five years (2012-2016) financial data it has found that the profit earning capacity and short-term investing capacity of ONGC is quite good. The study has suggested that the value of EBIT should be high in order to attain a maximum productivity capacity of assets. Through this study it indicates that the fluctuating trend might shift the company into a situation of bankruptcy.
·?????? Elayabharathi, Praveena, Rathika (2019), examined finance was the life which plays a vital role in the organization. The objective of the study was to evaluate the financial performance of the TNSC APEX Co-Operative bank. They found that the current assets of the concern had been decreased. So, they suggested the bank need to take steps to meet the short-term obligations. Finally, they concluded the concern to increase the current assets and liabilities to meet the short-term obligations and it help to improvement of concern.
·?????? Pathma Priya (2019), in the study the researcher has analysed the financial performance of HDFC Limited. In the connection, she had used many ratios, which include liquidity, solvency and profitability ratios. It was found that the financial performance of HDFC Limited was at satisfactory level.
·?????? Madhulatha Karri, Sheeba.V. Thomas and Omkar Venkata Chinnam Naidu Murru (2019), financial analysis helped to assess the profitability and financial position of a concern and the study accompanied on comparative financial performance of BHEL’S with its peers BEML, L&T, PUNJLLYOD, THERMASX. After analysing the researchers found that the liquidity position of THERMAX & BEML was good. The solvency position of BHEL & PUNJLLYOD was satisfactory. The operating efficiency of THERMAX was good. The profitability position of L&T was satisfactory. Finally, they concluded that based on profit overall financial performance of L&T was well.
·?????? Dr. R. Mayilsamy and Mr. P. Veerakumar (2021) their study is about financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The objective of their study was to analysis the financial strength and weakness of the Bharat petroleum corporation limited. The tools used for the study are liquidity ratio and profitability ratio. The suggestion given is that the company's day to-day cash management need to be improved and it has to improve the efficiency at converting sales into actual profit to enjoy the best profit.
·?????? K.Gowri, et.al (2022) In their study the analysis of financial statements is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of the firm's position and performance. The objective of this study is to find out the liquidity position of the Hindustan Petroleum Corporation Ltd. The present study of liquidity performance helps to analyse & understand various aspects connected to the finance and it is small contribution to the field of concern. The study is based on secondary source of data it was obtained from published annual reports, records and books of Hindustan Petroleum Corporation Ltd. The study suggested that the company should try to strength the internal funds of the company by way of issuing additional shares: The result of the study was not satisfactory during the study period so, the company should take necessary measures to improve their financial soundness.
·?????? Dr. M. Kalimuthu and Miss. Preeti Jaiswal (2020) This study aims at analysing the overall financial profitability of the HPCL by using various financial tools. Their objective of their study is to analyse the schedule of changes in Working capital for the period of five years. They used secondary data and collected from the various data base, journal and magazines. The study suggested that the company can maintain adequate current assets and liquid assets to meet its short-term obligation. They recommended improving a company’s liquidity ratio in the long term, it helps to take a look at accounts receivable and payable.
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3.1 OBJECTIVES OF STUDY
1. To know the profitability of the company using ratio analysis?
2. To make a comparative study of the company
3. To analysis past and present financial performance ?
4. To take an overview of industrial and company aspects of the company
3.2 LIMITATIONS OF STUDY
1.For study only following limited variables has studied such as PBDIT (Profit Before Depreciation Interest and Tax), PBIT(Profit Before Interest and Tax),Net Profit , Asset Turnover, PBT(Profit Before Tax) , Return on Equity , Return on capital employed and return asset.
2. The study is also limited only to competition.
3. The study is restricted only to the financial statements and analysis of financial statements.
3.3 DATA COLLECTION METHOD
Data collection Method have many techniques to gather information for research purpose. There are two types of data collection Methods used in data analyse. In this research I used secondary data collection Method to find the information. Secondary data is collected by someone other than the actual user. It means that the information is already available and someone analyse it. The secondary data includes magazines, newspapers, internet, etc. It may be either published data or unpublished data.
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3.4 SAMPLE SIZE
This research paper is based on last 5 years recent data.
3.5 RESEARCH DESIGN
In this research paper, data is presented as graphs and table.
COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
Average
mini
max
PETRONET
PBDIT MARGIN (%)
9.06
12.87
19.55
12.3
9.75
12.706
9.06
19.55
AAEGIS LOGISTICS
PBDIT MARGIN (%)
34.88
47.94
33.6
7.45
24.53
29.68
7.45
47.94
PBDIT means Profit Before Depreciation, Interest and Tax.
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COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
Average
mini
max
PETRONET
PBIT MARGIN (%)
7.78
11.09
16.53
10.11
8.67
10.836
7.78
16.53
AAEGIS LOGISTICS
PBIT MARGIN (%)
34.08
44.26
28
3.03
20.97
26.068
3.03
44.26
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COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
Average
mini
max
PETRONET
NET PROFIT MARGIN(%)
5.4
7.76
11.33
7.6
5.61
7.54
5.4
11.33
AAEGIS LOGISTICS
NET PROFIT MARGIN(%)
26.57
36.8
22.12
2.87
12.53
20.178
2.87
36.8
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Net profit margin is the most commonly used margin ratio and is the percentage of net income to sales. This ratio considers net income after accounting for all expenses of the business.
Net profit margin = Net income / sales
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COMPANY
YEAR
Mar-23
领英推荐
Mar-22
Mar-21
Mar-20
Mar-19
AVERAGE
PETRONET
PBT(%)
7.23
10.36
15.24
8.77
8.42
10.004
AEGIS LOGISTICS
PBT(%)
33.54
42.73
25.8
0.39
17.95
24.082
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Profit before tax (PBT) is?a measure of a company's profitability that looks at the profits made before any tax is paid. It matches all the company's expenses, which include operating and interest expenses, against its revenues but excludes the payment of income tax.
PBT= PBIT – Interest
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COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
AVERAGE
PETRONET
RETURN ON NETWORTH/EQUITY(%)
21.69
24.97
25.31
24.62
21.41
23.6
AEGIS LOGISTICS
RETURN ON NETWORTH/EQUITY(%)
26.57
36.8
22.12
2.87
12.53
20.178
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Return on Equity is a return ratio that reveals the return that the business has generated for its investors. It compares shareholder’s equity on the balance sheet to net income.
Return on equity = Net income / Total shareholder’s equity
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COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
AVERAGE
PETRONET
RETURN ON CAPITAL EMPLOYED(%)
23.89
26.06
25.52
22.03
26.44
24.788
AEGIS LOGISTICS
RETURN ON CAPITAL EMPLOYED(%)
37.61
29.51
12.78
2.45
10.93
18.656
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This ratio computes percentage return in the company on the funds invested in the business by its owners. A high ratio represents better the company is.? ? ??Formula: Net Operating Profit ÷ Capital Employed × 100
?Capital Employed = Equity share capital, Reserve and Surplus, Debentures? ? and long-term Loans
?Capital Employed = Total Assets – Current Liability
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COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
AVERAGE
PETRONET
RETURN ASSET(%)
14.44
15.87
15.57
14.42
14.28
14.916
AEGIS LOGISTICS
RETURN ASSET(%)
44.84
27.07
11.5
1.89
15.46
20.152
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This ratio is useful when you compare the figure for the most recent period with results from earlier periods in companies’ history. It can also be very informative when you compare companies’ return on assets with the return generated by other businesses in that industry.? If companies’ return on asset ratio is lower than those of other companies, this may indicate that competitors have found ways to operate more efficiently. If companies’ current return on assets is lower than it was a year ago. You should look at what has changed in way companies are using its resources.
?Return on assets = Net Income Before Taxes / Total Assets X 100
COMPANY
YEAR
Mar-23
Mar-22
Mar-21
Mar-20
Mar-19
AVERAGE
PETRONET
ASSET TURN OVER RATIO(%)
2.75
2.16
1.38
189.59
254.53
90.082
AEGIS LOGISTICS
ASSET TURN OVER RATIO(%)
1.2
0.53
33.14
49.81
56.32
28.2
The asset turnover ratio is calculated on an annual basis. The higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue. ?The asset turnover ratio tends to be higher for companies in certain sectors than in others.?
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AEGIS LOGISTICS
PROFITABILITY RATIOS
2019
2020
2021
2022
2023
PBDIT Margin (%)
34.88
47.94
33.60
7.45
24.53
PBIT Margin (%)
34.08
44.26
28.00
3.03
20.97
PBT Margin (%)
33.54
42.73
25.80
0.39
17.95
Net Profit Margin (%)
26.57
36.80
22.12
2.87
12.53
Return on Networth / Equity (%)
37.61
29.51
12.78
2.45
10.93
Return on Capital Employed (%)
44.84
27.07
11.50
1.89
15.46
Return on Assets (%)
30.86
18.27
7.33
1.43
7.05
Total Debt/Equity (X)
0.01
0.26
0.27
0.20
0.21
Asset Turnover Ratio (%)
1.20
0.53
33.14
49.81
56.32
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PETRONET
PROFITABILITY RATIOS
2019
2020
2021
2022
2023
PBDIT Margin (%)
9.06
12.87
19.55
12.30
9.75
PBIT Margin (%)
7.78
11.09
16.53
10.11
8.67
PBT Margin (%)
7.23
10.36
15.24
8.77
8.42
Net Profit Margin (%)
5.40
7.76
11.33
7.60
5.61
Return on Networth / Equity (%)
21.69
24.97
25.31
24.62
21.41
Return on Capital Employed (%)
23.89
26.06
25.52
22.03
26.44
Return on Assets (%)
14.44
15.87
15.57
14.42
14.28
Total Debt/Equity (X)
0.00
0.00
0.01
0.01
0.01
Asset Turnover Ratio (%)
2.75
2.16
1.38
189.59
254.53
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5.1 Conclusion
The study shows the financial performance of gas-industry between 2019 and 2023. Oil and Gas Industries are expected to invest in the recent technologies in their various projects and activities to achieve automation in the process, safer environment, efficiency and performance. ONGC provides major Indian oil and gas refining and distribution corporations with crude oil, natural gas, and value-added products. Its main products are crude oil and natural gas, destined for the Indian market. The Oil and Natural Gas Corporation (ONGC) limited is well known and highly profitable Public Sector based company in the country. It is known for its hard work and unique ideas. ONGC has efficient man power. In summary, ONGC faces both opportunities and challenges. Oil and Natural Gas are one of the most important resources for any countries in the world. Because they are used in different fields like in the field of agriculture, transportation, manufacturing industries, production of fertilizers, etc… Each and every day the demand for the Oil and Natural Gas are increasing. Thus, the role of Oil and Natural Gas companies plays a huge role in managing the working of the world. With this study conducted on analysing the financial performance of selected oil and gas industries (Petronet and Aegis Logistics) we can conclude that all the companies are doing well and utilizing all the resources that they got. Recently some companies are also exporting the petroleum products to other countries which shows the huge development in these petroleum industries.
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