ABB INDIA 2019-20 Annual Report Analysis

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ABB INDIA 2019-20 Annual Report Analysis
Wed, 27 Oct

ABB INDIA has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ABB INDIA Income Statement Analysis

  • Operating income during the year fell 29.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 32.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.4% in CY20 as against 5.6% in CY19.
  • Depreciation charges increased by 15.7% and finance costs decreased by 31.5% YoY, respectively.
  • Other income declined by 2.4% YoY.
  • Net profit for the year declined by 27.7% YoY.
  • Net profit margins during the year grew from 3.6% in CY19 to 3.7% in CY20.

ABB INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Net Sales Rs m 82,099 58,210 -29.1%
Other income Rs m 1,232 1,202 -2.4%
Total Revenues Rs m 83,331 59,412 -28.7%
Gross profit Rs m 4,624 3,141 -32.1%
Depreciation Rs m 1,040 1,204 15.7%
Interest Rs m 360 246 -31.5%
Profit before tax Rs m 4,457 2,894 -35.1%
Tax Rs m 1,423 702 -50.7%
Profit after tax Rs m 3,034 2,192 -27.7%
Gross profit margin % 5.6 5.4
Effective tax rate % 31.9 24.2
Net profit margin % 3.6 3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ABB INDIA Balance Sheet Analysis

  • The company's current liabilities during CY20 down at Rs 39 billion as compared to Rs 41 billion in CY19, thereby witnessing an decrease of -4.6%.
  • Current assets fell 5% and stood at Rs 61 billion, while fixed assets rose 17% and stood at Rs 14 billion in CY20.
  • Overall, the total assets and liabilities for CY20 stood at Rs 75 billion as against Rs 76 billion during CY19, thereby witnessing a fall of 2%.

ABB INDIA Balance Sheet as on December 2020

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Networth Rs m 35,200 36,063 2.5
 
Current Liabilities Rs m 41,251 39,339 -4.6
Long-term Debt Rs m 71 0 -100.0
Total Liabilities Rs m 75,905 74,733 -1.5
 
Current assets Rs m 63,982 60,836 -4.9
Fixed Assets Rs m 11,923 13,897 16.6
Total Assets Rs m 75,905 74,733 -1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ABB INDIA Cash Flow Statement Analysis

  • ABB INDIA's cash flow from operating activities (CFO) during CY20 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY20 stood at Rs 4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during CY20 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during CY20 stood at Rs 6 billion from the Rs 1 billion net cash flows seen during CY19.

ABB INDIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Dec-19 Dec-20
Cash Flow from Operating Activities Rs m 6,669 3,182 -52.3%
Cash Flow from Investing Activities Rs m -3,907 4,424 -
Cash Flow from Financing Activities Rs m -1,467 -1,523 -
Net Cash Flow Rs m 1,225 6,090 397.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ABB INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.3, an decline from the EPS of Rs 14.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,873.4, stands at 108.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 3.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 116.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Sales per share (Unadj.) Rs 387.4 274.7
TTM Earnings per share Rs 14.3 10.3
Diluted earnings per share Rs 14.3 10.3
Price to Cash Flow x 97.4 116.9
TTM P/E ratio x 108.3 108.3
Price / Book Value ratio x 8.7 6.3
Market Cap Rs m 396,989 396,989
Dividends per share (Unadj.) Rs 4.8 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ABB INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during CY20, from 1.6x during CY19. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 12.8x during CY20, from 13.4x during CY19. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 6.1% during CY20, from 8.6% during CY20. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 8.7% during CY20, from 13.7% during CY19. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 3.3% during CY20, from 4.5% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Current ratio x 1.6 1.5
Debtors’ Days Days 87 106
Interest coverage x 13.4 12.8
Debt to equity ratio x 0.0 0.0
Return on assets % 4.5 3.3
Return on equity % 8.6 6.1
Return on capital employed % 13.7 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ABB INDIA has performed over the last 5 years, please visit here.

ABB INDIA Share Price Performance

Over the last one year, ABB INDIA share price has moved up from Rs 930.5 to Rs 1,873.4, registering a gain of Rs 942.9 or around 101.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,864.4 (down 0.1%). Over the last one year it has moved up from 14,402.0 to 26,864.4, a gain of 12,462 points (up 86.5%).

Overall, the S&P BSE SENSEX is up 52.3% over the year.

(To know more, check out historical annual results for ABB INDIA and quarterly results for ABB INDIA)

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Related Views on News

ABB INDIA Announces Quarterly Results (4QFY21); Net Profit Up 128.2% (Quarterly Result Update)

Jul 8, 2021 | Updated on Jul 8, 2021

For the quarter ended March 2021, ABB INDIA has posted a net profit of Rs 2 bn (up 128.2% YoY). Sales on the other hand came in at Rs 16 bn (up 7.0% YoY). Read on for a complete analysis of ABB INDIA's quarterly results.

ABB INDIA Announces Quarterly Results (4QFY20); Net Profit Down 25.9% (Quarterly Result Update)

May 15, 2020 | Updated on May 15, 2020

For the quarter ended March 2020, ABB INDIA has posted a net profit of Rs 660 m (down 25.9% YoY). Sales on the other hand came in at Rs 15 bn (down 17.7% YoY). Read on for a complete analysis of ABB INDIA's quarterly results.

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