ABB INDIA 2020-21 Annual Report Analysis

Fri, 31 Dec

ABB INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ABB INDIA Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 96.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in CY21 as against 5.6% in CY20.
• Depreciation charges decreased by 14.7% and finance costs decreased by 24.1% YoY, respectively.
• Other income grew by 67.1% YoY.
• Net profit for the year grew by 131.1% YoY.
• Net profit margins during the year grew from 4.0% in CY20 to 7.7% in CY21.

ABB INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	58,210	69,340	19.1%
Other income	Rs m	1,250	2,089	67.1%
Total Revenues	Rs m	59,459	71,429	20.1%
Gross profit	Rs m	3,244	6,368	96.3%
Depreciation	Rs m	1,204	1,027	-14.7%
Interest	Rs m	246	187	-24.1%
Profit before tax	Rs m	3,044	7,243	138.0%
Tax	Rs m	739	1,918	159.4%
Profit after tax	Rs m	2,304	5,325	131.1%
Gross profit margin	%	5.6	9.2
Effective tax rate	%	24.3	26.5
Net profit margin	%	4.0	7.7

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ABB INDIA Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 40 billion as compared to Rs 39 billion in CY20, thereby witnessing an increase of 1.8%.
• Current assets rose 9% and stood at Rs 66 billion, while fixed assets fell 3% and stood at Rs 13 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 80 billion as against Rs 75 billion during CY20, thereby witnessing a growth of 7%.

ABB INDIA Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	36,063	40,451	12.2
Current Liabilities	Rs m	39,339	40,038	1.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	74,733	79,789	6.8
Current assets	Rs m	60,836	66,353	9.1
Fixed Assets	Rs m	13,897	13,435	-3.3
Total Assets	Rs m	74,733	79,789	6.8

ABB INDIA Cash Flow Statement Analysis

• ABB INDIA's cash flow from operating activities (CFO) during CY21 stood at Rs 6 billion, an improvement of 104.0% on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -20 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -1 billion, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs -15 billion from the Rs 6 billion net cash flows seen during CY20.

ABB INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	3,182	6,492	104.0%
Cash Flow from Investing Activities	Rs m	4,424	-20,079	-
Cash Flow from Financing Activities	Rs m	-1,523	-1,268	-
Net Cash Flow	Rs m	6,090	-14,858	-

Current Valuations for ABB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an improvement from the EPS of Rs 10.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,287.3, stands at 105.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.4 times, while the price to sales ratio stands at 5.5 times.
• The company's price to cash flow (P/CF) ratio stood at 59.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	274.7	327.2
TTM Earnings per share	Rs	10.9	25.1
Diluted earnings per share	Rs	10.9	25.1
Price to Cash Flow	x	74.6	59.8
TTM P/E ratio	x	88.9	105.7
Price / Book Value ratio	x	6.3	9.4
Market Cap	Rs m	226,133	379,756
Dividends per share (Unadj.)	Rs	5.0	5.2

Ratio Analysis for ABB INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during CY21, from 1.5x during CY20. 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 improved and stood at 39.8x during CY21, from 13.4x during CY20. 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 improved and stood at 13.2% during CY21, from 6.4% during CY21. 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 improved and stood at 18.4% during CY21, from 9.1% during CY20. 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 improved and stood at 6.9% during CY21, from 3.4% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	1.5	1.7
Debtors’ Days	Days	11	10
Interest coverage	x	13.4	39.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.4	6.9
Return on equity	%	6.4	13.2
Return on capital employed	%	9.1	18.4

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 1,425.4 to Rs 2,287.3, registering a gain of Rs 861.9 or around 60.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,418.0 (up 3.1%). Over the last one year it has moved up from 22,019.0 to 26,418.0, a gain of 4,399 points (up 20.0%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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

Read: Latest Annual Report Analysis of ABB INDIA