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ABB INDIA 2016-17 Annual Report Analysis
Sun, 31 Dec

ABB INDIA has announced its results for the year ended December 2017. Let us have a look at the detailed performance review of the company during FY16-17.

ABB INDIA Income Statement Analysis

  • Operating income during the year rose 8.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in CY17 as against 8.8% in CY16.
  • Depreciation charges increased by 4.7% and finance costs decreased by 23.6% YoY, respectively.
  • Other income grew by 7.4% YoY.
  • Net profit for the year grew by 12.1% YoY.
  • Net profit margins during the year grew from 4.6% in CY16 to 4.8% in CY17.

ABB INDIA Income Statement 2016-17

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Net Sales Rs m 81,009 87,995 8.6%
Other income Rs m 1,216 1,306 7.4%
Total Revenues Rs m 82,225 89,301 8.6%
Gross profit Rs m 7,102 7,313 3.0%
Depreciation Rs m 1,510 1,580 4.7%
Interest Rs m 1,076 822 -23.6%
Profit before tax Rs m 5,733 6,218 8.5%
Tax Rs m 1,988 2,018 1.5%
Profit after tax Rs m 3,745 4,200 12.1%
Gross profit margin % 8.8 8.3
Effective tax rate % 34.7 32.5
Net profit margin % 4.6 4.8
* 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 CY17 stood at Rs 52 billion as compared to Rs 38 billion in CY16, thereby witnessing an increase of 38.1%.
  • Long-term debt down at Rs 41 million as compared to Rs 6 billion during CY16, a fall of 99.3%.
  • Current assets rose 18% and stood at Rs 69 billion, while fixed assets rose 6% and stood at Rs 18 billion in CY17.
  • Overall, the total assets and liabilities for CY17 stood at Rs 88 billion as against Rs 76 billion during CY16, thereby witnessing a growth of 15%.

ABB INDIA Balance Sheet as on December 2017

No. of Mths Year Ending 12 Dec-16* 12 Dec-17* % Change
Networth Rs m 32,867 36,068 9.7
 
Current Liabilities Rs m 37,885 52,305 38.1
Long-term Debt Rs m 6,000 41 -99.3
Total Liabilities Rs m 76,008 87,708 15.4
 
Current assets Rs m 58,650 69,328 18.2
Fixed Assets Rs m 17,359 18,380 5.9
Total Assets Rs m 76,008 87,708 15.4
* 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 CY17 stood at Rs 8 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY17 stood at Rs -3 billion, an improvement of 370.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during CY17 stood at Rs -2 billion, an improvement of 4% on a YoY basis.
  • Overall, net cash flows for the company during CY17 stood at Rs 3 billion from the Rs 6 billion net cash flows seen during CY16.

ABB INDIA Cash Flow Statement 2016-17

Particulars No. of months 12 12 % Change
Year Ending Dec-16 Dec-17
Cash Flow from Operating Activities Rs m 8,626 7,917 -8.2%
Cash Flow from Investing Activities Rs m -681 -3,205 -
Cash Flow from Financing Activities Rs m -1,788 -1,710 -
Net Cash Flow Rs m 6,154 3,023 -50.9%
* 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 19.8, an improvement from the EPS of Rs 17.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,399.5, stands at 70.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 48.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-16* 12 Dec-17*
Sales per share (Unadj.) Rs 382.3 415.2
TTM Earnings per share Rs 17.7 19.8
Diluted earnings per share Rs 17.7 19.8
Price to Cash Flow x 41.9 48.6
TTM P/E ratio x 58.5 70.9
Price / Book Value ratio x 7.7 7.8
Market Cap Rs m 252,457 280,673
Dividends per share (Unadj.) Rs 4.0 4.4
* 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 1.3x during CY17, from 1.5x during CY16. 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 8.6x during CY17, from 6.3x during CY16. 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 11.6% during CY17, from 11.4% during CY17. 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 19.5% during CY17, from 17.5% during CY16. 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 5.7% during CY17, from 6.3% during CY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-16* 12 Dec-17*
Current ratio x 1.5 1.3
Debtors’ Days Days 13 11
Interest coverage x 6.3 8.6
Debt to equity ratio x 0.2 0.0
Return on assets % 6.3 5.7
Return on equity % 11.4 11.6
Return on capital employed % 17.5 19.5
* 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 1,276.5 to Rs 1,279.7, registering a gain of Rs 3.2 or around 0.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 16,446.0 (up 1.0%). Over the last one year it has moved up from 12,861.3 to 16,446.0, a gain of 3,585 points (up 27.9%).

Overall, the S&P BSE SENSEX is up 16.9% over the year.

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

Annual Report FAQs

What is the current share price of ABB INDIA?

ABB INDIA currently trades at Rs 5,680.0 per share. You can check out the latest share price performance of ABB INDIA here...

What was the revenue of ABB INDIA in CY17? How does it compare to earlier years?

The revenues of ABB INDIA stood at Rs 89,301 m in CY17, which was up 8.6% compared to Rs 82,225 m reported in CY16.

ABB INDIA's revenue has grown from Rs 72,542 m in CY13 to Rs 89,301 m in CY17.

Over the past 5 years, the revenue of ABB INDIA has grown at a CAGR of 5.3%.

What was the net profit of ABB INDIA in CY17? How does it compare to earlier years?

The net profit of ABB INDIA stood at Rs 4,200 m in CY17, which was up 12.1% compared to Rs 3,745 m reported in CY16.

This compares to a net profit of Rs 2,999 m in CY15 and a net profit of Rs 2,285 m in CY14.

Over the past 5 years, ABB INDIA net profit has grown at a CAGR of 24.1%.

What does the cash flow statement of ABB INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ABB INDIA reveals:

  • Cash flow from operations decreased in CY17 and stood at Rs 7,917 m as compared to Rs 8,626 m in CY16.
  • Cash flow from investments decreased in CY17 and stood at Rs -3,205 m as compared to Rs -681 m in CY16.
  • Cash flow from financial activity increased in CY17 and stood at Rs -1,710 m as compared to Rs -1,788 m in CY16.

Here's the cash flow statement of ABB INDIA for the past 5 years.

(Rs m)CY13CY14CY15CY16CY17
From Operations3,3014,7903,8178,6267,917
From Investments-2,197-1,477-764-681-3,205
From Financial Activity1,191-4,221422-1,788-1,710
Net Cashflow2,296-9083,4746,1543,023

What does the Key Ratio analysis of ABB INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ABB INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 8.3% in CY17 as against 8.8% in CY16.
  • Net profit margins grew from 4.6% in CY16 to 4.8% in CY17.
  • Debt to Equity ratio for CY17 stood at 0.0 as compared to 0.2 in CY16.

Here's the ratio/financial analysis of ABB INDIA for the past 5 years.

 CY13CY14CY15CY16CY17
Operating Profit Margin (%)6.77.89.58.88.3
Net Profit Margin (%)2.43.13.94.64.8
Debt to Equity Ratio (x)0.00.00.20.20.0

Read: Latest Annual Report Analysis of ABB INDIA

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