SVOGL Oil Gas & Energy Ltd 31 st May, 2016 TABLE 1 MARKET DATA (STANDALONE) (As on 31 st May, 2016) NSE Code SVOGL NSE Market Price ( ) 3.35 NSE Market Cap. ( Cr.) 151.74 Sector Crude Oil & Natural Gas Face Value ( ) 10.00 Equity ( Cr.) 433.53 52 week High/Low ( ) 11.95/3.45 Net worth ( Cr.) 88.73 Business Group Indian Private TTM P/E N.A. Traded Volume (Shares) 15,928 Year of Incorporation 1989 TTM P/BV N.A. Traded Volume (lacs) 0.53 Source Capitaline Corporate Office: Tower 1, 5th Floor, NBCC Plaza, Sector V, Pushp Viha, New Delhi 110 017 Company Website: COMPANY BACKGROUND SVOGL Oil Gas and Energy Limited, together with its subsidiaries, provides oil and natural gas exploration, and other allied services in India. Its core services include seismic data acquisition, processing, and interpretation; deep and directional drilling; workover; pipeline construction; and reservoir data acquisition. The company also offers specialized services, such as cementing, stimulation, logging, well testing, directional drilling, mud engineering and logging, and logistics services; and integrated services for coal bed methane. In addition, it offers offshore drilling, and gas compression and allied services; and generates solar power. The company was formerly known as Shiv Vani Oil & Gas Exploration Services Limited and changed its name to SVOGL Oil Gas and Energy Limited in August 2015. SVOGL Oil Gas and Energy Limited was incorporated in 1989 and is headquartered in New Delhi, India. TABLE 2 PRICE PERFORMANCE 30 th May, 29 th May, 30 th May, % Change CAGR for 2 2016 2015 2014 2016 vs 2015 2015 vs 2014 years Price ( ) 3.45 10.00 17.95 65.50% 44.29% 56.16% Trading Volume (Shares) (yearly avg.) 67,232 1,00,767 54,141 33.28% 86.12% NSE Market Cap. (in Cr.) 149.57 51.44 83.22 190.77% 38.19% 34.06% Source Money Control 1 P AGE
TABLE 3 FINANCIALS ( Cr.) 2015 2014 2013 % Change 2015 vs 2014 2014 vs 2013 CAGR for 2 years Net Worth 88.73 494.16 1026.36 117.96% 51.85% N.A. Current Assets 1,219.77 1,327.64 1,385.23 8.12% 4.16% 6.16% Non Current Assets 2,945.44 3,088.77 3,226.95 4.64% 4.28% 4.46% Total Assets 4,165.2 4,416.41 4,612.18 5.69% 4.24% 4.97% Investments 782.41 700.64 714.10 11.67% 1.88% 4.67% Finance Cost 346.18 362.45 266.69 4.49% 35.91% 13.93% Long Term Liabilities 3,084.66 2,887.01 2,168.94 6.85% 33.11% 19.26% Current Liabilities 1,043.62 1,035.25 1,416.88 0.81% 26.93% 14.18% Turnover 126.12 238.47 1,074.24 47.11% 77.80% 65.74% Profit After Tax (PAT, Cr.) 582.88 527.02 37.65 N.A. 1,500% N.A. EPS ( ) 126.00 114.00 7.00 N.A. 1,729% N.A. Source Money Control/Annual Report AUDIT QUALIFICATIONS Audit Qualifications in last 3 years: The Auditors have not made any qualifications in their report for last three years. Response Comment Frequency of Qualifications Not applicable Have the auditors made any adverse remark in last 3 years? No Are the material accounts audited by the Principal Auditors? Yes Do the financial statements include material unaudited financial statements? No TABLE 4: BOARD PROFILE (As on 31 st March, 2015) Regulatory Norms Company % of Independent Directors on the Board 50% 50% % of Promoter Directors on the Board 33.33% Number of Women Directors on the Board At least 1 None Classification of Chairman of the Board Executive Promoter Director Is the post of Chairman and MD/CEO held by the same person? Yes Average attendance of Directors in the Board meetings (%) 71.74% Source Money Control/Annual Report Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 50% Independent Directors as the Chairman of the Board is a Promoter Director. The Company as on 31 st March, 2015 has 50 % of Independent Directors and hence, it meets the regulatory requirements. Board Diversity: The Company has 6 directors all are male. The Company does not have a single woman Director on the Board. The Company is non compliant as per Clause 17 of the Listing Regulations, 2015 regarding the requirement of at least one woman director. The secretarial Auditor also raised this observation in their Audit Report. Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Prem Singhee as the Chairman and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of the Company is not a good governance practice as this may lead to concentration of power in a single person. 2 P AGE
TABLE 5 FINANCIAL RATIOS Ratios 2015 2014 2013 Turnover Ratios Return Ratios Liquidity Ratios % Change 2015 vs 2014 2014 vs 2013 Inventory Turnover 0.48 0.91 3.78 47.34% 75.85% Debtors Turnover 0.25 0.38 1.73 35.50% 77.74% Fixed asset Turnover 0.04 0.08 0.33 44.54% 76.81% Current Asset Turnover 0.10 0.18 0.78 42.44% 76.84% Operating Profit Margin 472.93% 287.29% 7.16% N.A. 4111.73% Net Profit Margin 462.16% 221.00% 3.50% N.A. 6405.65% Return on Assets (ROA) 13.99% 11.93% 0.82% N.A. 1561.84% Return on Equity (ROE) N.A. 106.65% 3.67% N.A. 3007.33% Return on Capital Employed (ROCE) N.A. N.A. 14.88% N.A. N.A. Current Ratio 1.17 1.28 0.98 8.86% 31.17% Quick Ratio 0.92 1.03 0.78 10.94% 32.56% Cash Ratio 0.43 0.43 0.34 0.19% 27.44% Working Capital Turnover ratio 0.72 0.82 N.A. 12.21% N.A. Solvency Ratios Debt to equity ratio N.A. 6.60 2.21 N.A. 199.08% Interest Coverage Ratio N.A. N.A. 1.29 N.A. N.A. Trading Ratios Market Cap / Sales 1.55 0.82 0.18 89.08% 350.47% Market Cap/ Net Worth N.A. 0.39 0.19 N.A. 107.70% Market Cap/PAT N.A. N.A. 5.18 N.A. N.A. Market Cap/EBITDA N.A. N.A. 267.68 N.A. N.A. Trading Volume (shares) (avg. of 1 year) 67,984 1,00,606 53,350 32.43% 88.58% Trading Volume (shares) (high in 1 year) 12,42,710 12,65,664 4,02,437 1.81% 214.50% Trading Volume (shares) (low in 1 year) 2,945 5,889 1,056 49.99% 457.67% Ratio High/low trading volume 421.97 214.92 381.10 96.34% 43.60% Ratio High/average trading volume 18.28 12.58 7.54 45.30% 66.77% Source Money Control 3 P AGE
TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS Mar' 2016 Mar' 2015 Mar' 2014 Comments Shareholding Promoter shareholding Public Institutional shareholding Public Others shareholding Non Promoter Non Public Shareholding TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS Market Activity of Promoters Preferential issue to promoters ** Preferential issue to others GDRs issued by the Company Issue of ESOPs/Issue of shares other than Preferential allotment Source Annual Report 33.65% 30.52% 48.14% 41.38% 3.34% 3.61% 24.96% 66.14% 48.25% No Yes (issued under CDR scheme) 50,83,046 shares have been allotted at a premium of `.5.96 per share on Preferential basis to lenders (ICICI Bank) by way conversion of FITL. 37,70,06,031 number of shares have been allotted to promoters/fii s/banks under CDR scheme. Hence, the promoter shareholding decreased from 48.14% as on Mar 2014 to 33.65% as on Mar 2016. The shareholding of public institution increased from 3.61% to 41.38% and that of public others decreased from 48.25% to 24.96% during the same period. The promoters have pledged 85.04% of their shareholding. Yes (issued to ICICI Bank) The Company did not issue any GDRs during last three years. The Company did not issue any shares to the employees under its ESOP Scheme in last three years. **issue of shares under CDR scheme: No. of share issue under CDR 81,17,540 allotted at a premium of 6.06 per share to CDR Scheme. 3,77,49,925 allotted at a premium of 6.06 per share to Banks/FIs Pursuant to CDR Scheme. 25,92,90,000 allotted to Lenders pursuant to SDR Scheme. 3,03,87,828 allotted at a premium of 16.76 per share to Promoters / Promoter Group Pursuant to CDR Scheme. 4,65,43,784 allotted at a premium of 6.06 per share to CDR Scheme. 4 P AGE
Glossary Equity: The equity shares capital of the Company Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders funds of the Company Turnover: The revenue earned from the operations of the Company EPS: Earning Per Share is net profit earned by the Company per share Profit After Tax Number of outstanding shares P/E ratio: It is the ratio of the Company s share price to earnings per share of the Company / Price of each share Earnings per share Current Assets: Cash and other assets that are expected to be converted to cash in one year Fixed Assets: assets which are purchased for long term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment Total Assets: Current Assets + Fixed Assets Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges incurred during the year in relation to borrowed money. Long Term Liabilities: Long term liabilities are liabilities with a maturity period of over one year. Current Liabilities: A company's debts or obligations that are due within one year. Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over a period. Inventory Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business can turn its accounts receivable into cash during a period Accounts recievables Fixed Asset Turnover: The fixed asset turnover ratio is a financial ratio of net sales to fixed assets Fixed Assets Current Asset Turnover: The current asset turnover ratio is a financial ratio of net sales to fixed assets Current Assets 5 P AGE
Operating Profit Margin: Operating margin is a measurement of what proportion of a Company s revenue is left over after paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company s operating income (also known as operating profit ) during a given period by its sales during the same period. Operating profit Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales Net profit Return on Assets: ROA tells you what earnings were generated from invested capital (assets) Net profit Total Assets Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Net profit Net worth Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. Net profit Total Debt Equity share capital Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. Current Assets Current Liabilities Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities. Current Assets Inventories Current Liabilities Cash ratio: The ratio of the liquid assets of a Company to its current liabilities. Current Assets Inventories Account Recievables Current Liabilities Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a Company's effectiveness in using its working capital. Current Assets Current Liabilities Debt to Equity ratio: The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a Company can pay interest on outstanding debt. 6 P AGE
Market Cap/Sales ratio: Market Cap/sales ratio, Price sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per share stock price by the per share revenue. / Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company s market cap to net worth. / Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company s market cap to net profit. / Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company s market cap to EBITDA. / Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year 7 P AGE
DISCLAIMER Sources Only publicly available data has been used while making the factsheet. Our data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek, Reuters, Annual Reports, IPO Documents and Company Website. Company Informa on Analyst Cer fica on The analysts involved in development of this factsheet certify that no part of any of the research analyst s compensation was, is, or will be directly or indirectly related to the contents of this factsheet. Disclaimer While SES has made every effort and has exercised due skill, care and diligence in compiling this factsheet based on publicly available information, it neither guarantees its accuracy, completeness or usefulness, nor assumes any liability whatsoever for any consequence from its use. This factsheet does not have any approval, express or implied, from any authority, nor is it required to have such approval. The users are strongly advised to exercise due diligence while using this factsheet. This factsheet in no manner constitutes an offer, solicitation or advice to buy or sell securities, nor solicits votes or proxies on behalf of any party. SES, which is a not for profit Initiative or its staff, has no financial interest in the companies covered in this factsheet except what is disclosed on its website. The factsheet is released in India and SES has ensured that it is in accordance with Indian laws. Person resident outside India shall ensure that laws in their country are not violated while using this factsheet; SES shall not be responsible for any such violation. All disputes subject to jurisdiction of High Court of Bombay, Mumbai. SEBI Reg. No. INH000000016 This factsheet or any portion hereof may not be reprinted, sold, reproduced or redistributed without the written consent of Stakeholders Empowerment Services Contact Informa on Stakeholders Empowerment Services A 202, Muktangan, Upper Govind Nagar, Malad East, Mumbai 400 097 Tel +91 22 4022 0322 research@sesgovernance.com info@sesgovernance.com www.sesgovernance.com. Research Analyst: Sudarshan Shetty 8 P AGE