ABB INDIA 2021-22 Annual Report Analysis

Sat, 31 Dec

ABB INDIA has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ABB INDIA Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 96.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.6% in CY22 as against 9.2% in CY21.
• Depreciation charges increased by 1.9% and finance costs decreased by 17.6% YoY, respectively.
• Other income grew by 11.8% YoY.
• Net profit for the year grew by 92.6% YoY.
• Net profit margins during the year grew from 7.7% in CY21 to 12.0% in CY22.

ABB INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	69,340	85,675	23.6%
Other income	Rs m	2,089	2,335	11.8%
Total Revenues	Rs m	71,429	88,011	23.2%
Gross profit	Rs m	6,368	12,494	96.2%
Depreciation	Rs m	1,027	1,047	1.9%
Interest	Rs m	187	154	-17.6%
Profit before tax	Rs m	7,243	13,628	88.2%
Tax	Rs m	1,918	3,372	75.8%
Profit after tax	Rs m	5,325	10,256	92.6%
Gross profit margin	%	9.2	14.6
Effective tax rate	%	26.5	24.7
Net profit margin	%	7.7	12.0

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ABB INDIA Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 44 billion as compared to Rs 40 billion in CY21, thereby witnessing an increase of 10.0%.
• Current assets rose 20% and stood at Rs 79 billion, while fixed assets fell 1% and stood at Rs 13 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 92 billion as against Rs 80 billion during CY21, thereby witnessing a growth of 16%.

ABB INDIA Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	40,451	49,393	22.1
Current Liabilities	Rs m	39,543	43,503	10.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	79,789	92,284	15.7
Current assets	Rs m	65,752	78,986	20.1
Fixed Assets	Rs m	13,435	13,298	-1.0
Total Assets	Rs m	79,789	92,284	15.7

ABB INDIA Cash Flow Statement Analysis

• ABB INDIA's cash flow from operating activities (CFO) during CY22 stood at Rs 7 billion, an improvement of 14.1% on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs 18 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs 24 billion from the Rs -15 billion net cash flows seen during CY21.

ABB INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	6,502	7,419	14.1%
Cash Flow from Investing Activities	Rs m	-20,079	18,262	-
Cash Flow from Financing Activities	Rs m	-1,268	-1,402	-
Net Cash Flow	Rs m	-14,849	24,278	-

Current Valuations for ABB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.4, an improvement from the EPS of Rs 25.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,683.2, stands at 77.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.5 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 50.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	327.2	404.3
TTM Earnings per share	Rs	25.1	48.4
Diluted earnings per share	Rs	25.1	48.4
Price to Cash Flow	x	74.6	50.5
TTM P/E ratio	x	88.9	77.1
Price / Book Value ratio	x	9.4	11.6
Market Cap	Rs m	379,756	571,120
Dividends per share (Unadj.)	Rs	5.2	5.5

Ratio Analysis for ABB INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during CY22, from 1.7x during CY21. 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 89.5x during CY22, from 39.8x during CY21. 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 20.8% during CY22, from 13.2% during CY22. 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 27.9% during CY22, from 18.4% during CY21. 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 11.3% during CY22, from 6.9% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	1.7	1.8
Debtors’ Days	Days	10	9
Interest coverage	x	39.8	89.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	11.3
Return on equity	%	13.2	20.8
Return on capital employed	%	18.4	27.9

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 1,417.4 to Rs 2,154.3, registering a gain of Rs 736.9 or around 52.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 27,506.0 (up 0.2%). Over the last one year it has moved up from 21,095.8 to 27,506.0, a gain of 6,410 points (up 30.4%).

Overall, the S&P BSE SENSEX is up 16.8% 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