SWOT ANALYSIS

i. STRENGHTS
1. IOCL is India's largest commercial enterprise with a strong brand name.
2. Indian Oil has petroleum products, fuels, lubricants, petrochemicals etc.
3. Operates 11 refineries out of 23 in India .
4. Huge distribution network through retailing makes Indian Oil a popular
brand name.
5. Accounts for a majority share in the petroleum products market and
substantial share in refining capacity and downstream sector pipelines
capacity in India.
6. IOCL has over 35,000 employees.
7. Loyalty programs like XTRAPOWER Fleet Card Program is aimed at Large
Fleet Operators.
8. IOCL's pipeline in India spans more than 11,000km making it one of the
largest globally.
9. Strong branding and marketing exercises through TVC, sponsorships, print,
online ads etc make Indian Oil a top brand.

ii. WEAKNESSES
1. High competition from other oil companies that leads to limited market
share growth.
2. Bureaucracy affects the operations of a government controlled company like
IOCL.

iii. OPPORTUNITIES

1. IOCL can tap on increasing demand and higher fuel/oil prices. 

2. Increasing natural gas market for industries and transportation.
3. Global expansion with tie-ups with international oil companies.
4. Acquisition of smaller companies can further strengthen the position of
IOCL

iv. THREATS
1. Government regulations can slow down business.
2. High Competition means limited market share for IOCL.
3. NGOs and environment focused companies can be an obstacle in business.
 Financial Statements with Ratio Analysis
PARTICULARS Mar'19 Mar'18 Mar'17
INCOME      
Net Sales Turnover 424038.7 359873.16 347176.43
Other Income 3414.62 4208.58 2322.16
Total Income 427453.32 364081.74 349498.59
EXPENSES      
Stock Adjustments 2327.5 -15259.8 3479.2
Raw Material Consumed 188780.12 156910.25 142265.53
Power and Fuel 0 0 0
Employee Expenses 10079.41 9657.89 7114.02
Administration and Selling 0 0 0
Expenses
Research and Development 0 0 0
Expenses
Expenses Capitalized 0 0 0
Other Expenses 183186.56 176783.76 173269.09
Provisions Made 0 0 0
TOTAL EXPENSES 384373.59 328092.1 326127.84
Operating Profit 39665.11 31781.06 21048.59
EBITDA 43079.73 35989.64 23370.75
Depreciation 7067.01 6222.97 4818.57
EBIT 36012.72 29766.67 18552.18
Interest 3448.44 3445.43 3089.89
EBT 32564.28 26321.24 15462.29
Taxes 11218.16 7214.84 5584.31
Profit and Loss for the Year 21346.12 19106.4 9877.98
Extraordinary Items 0 0 0
Prior Year Adjustment 0 0 0
Other Adjustment 0 0 0
Reported PAT 21346.12 19106.4 11242.23
KEY ITEMS
Reserves Written Back 0 0 0
Equity Capital 9711.81 4855.9 2427.95
Reserves and Surplus 100692.33 94989.38 85764.64
Equity Dividend Rate 210 190 0
EPS(Rs.) 5.51 8.32 3.93

Balance Sheet of
Indian Oil
Corporation Rs. in Cr Rs. in Cr  Rs. in Cr

Mar-19 Mar-18 Mar-17

 12months 12 months 12 months
EQUITIES AND LIABILITIES  
SHAREHOLDER'S FUNDS  

Equity Share Capital 9478.69 4,739.34 2,369.67

Total Share Capital 9478.69 4,739.34 2,369.67
Reserves and Surplus 100692.3 94,989.38 85,764.64
Total Reserves and
Surplus 100692.3 94,989.38 85,764.64
Total Share holder
Funds 110171 99728.72 88,134.31
NON-CURRENT LIABILITIES  
Long Term Borrowings 18717.6 20,312.04 24,937.56
Deferred Tax Liabilities
[Net]
12019.57 6,759.23 6,858.99
Other Long Term Liabilities 20,963.52 18,156.92
Long Term Provisions 2023.32 2,926.98 2,386.29

Total Non-Current
Liabilities   50,961.77 52,339.76
CURRENT LIABILITIES  
Short Term Borrowings 36807.56 30,072.76 17,545.81
Trade Payables 33106.05 30,134.29 22,331.82
Other Current
Liabilities 60781.51 29,391.00 30,369.49
Short Term Provisions 14161.6 18,924.73 9,782.98
Total Current Liabilities 1,35,882.28 1,08,522.78 80,030.10
Total Capital And
Liabilities 280739.9 2,59,213.27 2,20,504.17
ASSETS  
NON-CURRENT ASSETS  
Tangible Assets 112887.7 1,06,900.73 90,594.59
Intangible Assets 1039.67 978.76 752.38
Capital Work-In-
Progress 13860.99 10,223.36 20,329.56

Intangible Assets Under

Development 487.44 514.46 695.52
Fixed Assets 127395.8 1,18,617.31 1,12,372.05
 Non-Current
Investments   40,109.19 30,085.66

Long Term Loans And

Advances   1,180.89 1,127.78
Other Non-Current
Assets 6,518.18 6,227.97
Total Non-Current
Assets 177684.9 1,66,425.57 1,49,813.46
CURRENT ASSETS  
Current Investments 8399.32 7,195.41 7,095.74
Inventories 65313.21 62,401.14 38,739.11
Trade Receivables 10116.52 8,502.37 7,548.60
Cash And Cash
Equivalents   86.5 512.94

Short Term Loans And

Advances   1,758.53 732.86
Other Current Assets   12,843.75 16,061.46
Total Current Assets 1,03,055 92,728.35 70,652.15
Total Assets 280739.9 2,59,213.27 2,20,504.17

Ratios Formulae 2019 2018 2017

Current asset /Current
Current Ratio Liabilities 0.758 0.85 0.88
Quick asset/Current
Acid Ratio Liabilities 0.34 0.28 0.4
Debt Equity
Ratio Debt/Equity 0.53 0.51 0.48
Fixed Asset
Turnover
Ratio Net sales/Fixed Asset 0.921 3.003 3.089
Current asset
turnover Ratio Net sales/Current asset 1.138 3.88 4.91

INTERPRETATION:
1) From the above calculations it is shown that the firms current ratio is being decreased
over the years. This indicates that the firm has failed to meet the ideal ratio of 2:1 and
has insufficient current assets to meet its short term liabilities.
2) The Quick Ratio of the firm is decreasing over the years which means that there are
insufficient liquid assets to meet its short term obligation. The quick assets doesnot
include inventory as it takes time to convert inventory into cash.
3) The Debt Equity Ratio is used to evaluate the financial leverage of the company. The
company’s ratio is less than 1 which shows that the shareholders fund are not at risk.
4) This ratio indicates how well the business is utilizing its assets and converting it to
generate sales. The ratios was higher in the year 2018 and 2017 but in the year 2019 it
has reduced drastically which indicates the business has over invested in Fixed
Assets.
5) Current Asset turnover ratio indicates the how well the company achieves maximum
sales with minimum investment in Current Assets. The company’s ratio is decreasing
over the years which indicates that the sales is decreasing and the cash is blocked in
the form of current assets.