ABB INDIA LTD. 2016-17 Annual Report Analysis

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ABB INDIA LTD. 2016-17 Annual Report Analysis
Tue, 18 Sep

ABB INDIA LTD. 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 LTD. Income Statement Analysis

  • Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 6.0% YoY during the fiscal. Operating profit margins witnessed a rise and up at 8.1% in CY17 as against 8.0% in CY16.
  • Depreciation charges increased by 4.7% and finance costs decreased by 15.9% YoY, respectively.
  • Other income declined by 0.5% YoY.
  • Net profit for the year grew by 12.1% YoY.
  • Net profit margins during the year grew from 4.3% in CY16 to 4.6% in CY17.

ABB INDIA LTD. Income Statement 2016-17

No. of Mths Year Ending12 Dec-16*12 Dec-17*% Change
Net SalesRs m86,42290,8735.2%
Other incomeRs m1,2161,210-0.5%
Total RevenuesRs m87,63892,0835.1%
Gross profitRs m6,9457,3616.0%
DepreciationRs m1,5101,5804.7%
InterestRs m919773-15.9%
Profit before taxRs m5,7336,2188.5%
TaxRs m1,9882,0181.5%
Profit after taxRs m3,7454,20012.1%
Gross profit margin%8.08.1
Effective tax rate%34.732.5
Net profit margin%4.34.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ABB INDIA LTD. 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 38.0%.
  • Long-term debt down at Rs 41 million as compared to Rs 6 billion during CY16, a fall of 99.3%.
  • Current assets rose 17% and stood at Rs 70 billion, while fixed assets fell 3% and stood at Rs 13 billion in CY17.
  • Overall, the total assets and liabilities for CY17 stood at Rs 89 billion as against Rs 77 billion during CY16, thereby witnessing a growth of 15%.

ABB INDIA LTD. Balance Sheet as on December 2017

No. of Mths Year Ending12 Dec-16*12 Dec-17*% Change
NetworthRs m32,82836,0699.9
 
Current LiabilitiesRs m37,90152,30538.0
Long-term DebtRs m6,00041-99.3
Total LiabilitiesRs m77,28988,88115.0
 
Current assetsRs m59,23869,56417.4
Fixed AssetsRs m 13,22712,887-2.6
Total AssetsRs m77,28988,88115.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ABB INDIA LTD. Cash Flow Statement Analysis

  • ABB INDIA LTD.'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 382.4% 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 6 billion from the Rs 6 billion net cash flows seen during CY16.

ABB INDIA LTD. Cash Flow Statement 2016-17

ParticularsNo. of months1212% Change
Year EndingDec-16Dec-17
Cash Flow from Operating ActivitiesRs m8,6267,998-7.3%
Cash Flow from Investing ActivitiesRs m-681-3,287-
Cash Flow from Financing ActivitiesRs m-1,788-1,710-
Net Cash FlowRs m6,1566,024-2.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ABB INDIA LTD.

  • 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 1,442.0, stands at 66.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 52.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Dec-16*12 Dec-17*
Sales per share (Unadj.)Rs407.8428.8
TTM Earnings per shareRs17.719.8
Diluted earnings per shareRs17.719.8
Price to Cash Flow x58.252.9
TTM P/E ratiox66.566.5
Price / Book Value ratiox7.77.8
Market CapRs m305,574305,574
Dividends per share (Unadj.)Rs4.04.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ABB INDIA LTD.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during CY17, from 1.6x 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 deteriorated and stood at 9.0x during CY17, from 7.2x 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 19.4% during CY17, from 17.1% 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 5.6% during CY17, from 6.0% during CY16. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Dec-16*12 Dec-17*
Current ratiox1.61.3
Debtors’ DaysDays129112
Interest coveragex7.29.0
Debt to equity ratiox0.20.0
Return on assets%6.05.6
Return on equity%11.411.6
Return on capital employed%17.119.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ABB INDIA LTD. Share Price Performance

Over the last one year, ABB INDIA LTD. share price has moved up from Rs 1,418.7 to Rs 1,442.0, registering a gain of Rs 23.4 or around 1.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,267.9 (down 0.9%). Over the last one year it has moved down from 18,425.6 to 18,267.9, a loss of 158 points (down 0.9%).

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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

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