Mumbai-based Nayara Energy has announced its annual results for the financial year 2020-21. However, the company was acquired by Russia's state-owned oil company Rosneft. Nayara Energy is an integrated downstream oil company of international scale encompassing the entire hydrocarbon value chain from refining to production and marketing, across segments, including retail. Nayara Energy, erstwhile known as Essar Oil, reported a steep fall of 82% in the consolidated profit after tax (PAT) to Rs 458.2 crore in the financial year 2020-21, as against a net profit of Rs 2,500 crore in the financial year 2019-20. Russia's Rosneft owns a 49.13% stake in the company. Geneva-based Trafigura Group, a Swiss multinational commodity trading company owns and Moscow's United Capital Partners owns the remaining 49.13% stake in the company. In October 2016, Rosneft and Russian investment fund United Capital Partners bought a majority stake in the company for a whopping $12.9 billion. They renamed the company to ‘Nayara’, coined from “Naya” (New) and “Era”, in May 2018. The company clocked a consolidated revenue of Rs 87,500.6 crore in the financial year ended on March 31, 2021, which was more than 12% lower than the revenue of Rs 99,868.3 crore generated in the year ended on March 31, 2020. It has Private Petrol Pumps, operates the second-largest refinery in Gujarat, India, and a 1000 megawatt power plant along with the Vadinar port and oil terminal. It reported an operating loss in the financial year ended on March 31, 2021. The loss before taxation stood at Rs 283.5 crore in the fiscal year 2021, with a profit (PBT) of Rs 977.7 crore in the fiscal year 2020. The company is aiming to increase the petrol pump network to 6,000 outlets in the Indian territory from the current 3,500. However, the company's total expenses declined about 10.4 percent during the period under review. It incurred total expenses of Rs 88,849.1 crore in the FY2021 as against expenses of Rs 99,117.8 crore in the FY2020. The diluted earnings per share (EPS) on the consolidated basis for the company grew sharply 82% to Rs 3.07 in FY21, as compared to Rs 16.61 in FY20. Standalone Performance of Nayara Energy Nayara Energy reported a sharp 81.4% plunge in the profit after tax (PAT) to Rs 466.5 crore in the financial year 2020-21 as against a net profit of Rs 2,518.3 crore in the previous financial year. The company's revenue from operations declined 12.4% to Rs 87,500.6 crore in the FY2021, which was Rs 99,968.3 crore in the FY2020. It reported an operating net loss of Rs 275.5 crore during the April 2020-March 2021 period, which was a profit before tax of Rs 1,450.1 crore in the same period a year ago. However, the total expenses declined more than 10% during the period under review to Rs 88,831.6 crore in the financial year ended on March 31, 2021, as compared to expenses of 99,098.9 crores in the year-ago period. The diluted earnings per share (EPS) of the company on a standalone basis tanked more than 80% to mere Rs 3.13 in the FY21 as against Rs 16.89 in the FY20. Key Take-aways: 1. In their report to the shareholders of the company, the board of directors called the financial year 2020-21 'an unprecedented' one due to many factors, thanks to the Covid-19 pandemic, which altered lives in many ways. 2. The pandemic accelerated large-scale changes. It led to grave uncertainty and challenges, despite which the company was able to deliver value to shareholders, excelling occasionally throughout the year. 3. The company was able to control the degrowth in the topline. However, the bottom line of the company took a big hit, eroding more than four-fifth parts of the profits. 4. On an Operational basis, the company reported a net loss of Rs 275.5 crore during the year as compared to an operating profit of Rs 1,450.1 crore. 5. The EBITDA (Earning before cost, depreciation/amortization, Exceptional items, and Tax) declined about 42% to Rs 3,728.1 crore, which was Rs 6,404.4 crore in the previous year. 6. Against all odds, the Company was able to maintain business performance, delivering desired outcomes with commitment, hard work, seamless coordination, timely communication and focus on execution. 7. In the current outlook of the organization, the company is confident to deliver a strong performance in the future. 8. Despite a difficult year for the market, Nayara Energy delivered positive net income due to its financial resilience, refinery productivity, and retail asset performance. 9. As soon as Covid 19 started spreading, the company quickly set up a dedicated crisis management team and defined business continuity plans to follow. 10. Its clear focus was to ensure the safety of its people, its assets are securely kept, and maintaining business continuity.