LINDE INDIA 2017-18 Annual Report Analysis

Mon, 31 Dec

LINDE INDIA has announced its results for the year ended December 2018. Let us have a look at the detailed performance review of the company during FY17-18.

LINDE INDIA Income Statement Analysis

• Operating income during the year rose 12.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.8% in CY18 as against 16.3% in CY17.
• Depreciation charges decreased by 1.4% and finance costs decreased by 11.8% YoY, respectively.
• Other income grew by 22.3% YoY.
• Net profit for the year grew by 93.6% YoY.
• Net profit margins during the year grew from 0.5% in CY17 to 0.9% in CY18.

LINDE INDIA Income Statement 2017-18

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Net Sales	Rs m	19,511	21,917	12.3%
Other income	Rs m	78	95	22.3%
Total Revenues	Rs m	19,589	22,011	12.4%
Gross profit	Rs m	3,178	3,253	2.4%
Depreciation	Rs m	2,019	1,991	-1.4%
Interest	Rs m	1,165	1,027	-11.8%
Profit before tax	Rs m	72	329	360.0%
Tax	Rs m	-28	137	-591.9%
Profit after tax	Rs m	99	192	93.6%
Gross profit margin	%	16.3	14.8
Effective tax rate	%	-38.9	41.6
Net profit margin	%	0.5	0.9

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LINDE INDIA Balance Sheet Analysis

• The company's current liabilities during CY18 stood at Rs 14 billion as compared to Rs 10 billion in CY17, thereby witnessing an increase of 33.7%.
• Long-term debt down at Rs 4 billion as compared to Rs 8 billion during CY17, a fall of 46.3%.
• Current assets rose 54% and stood at Rs 10 billion, while fixed assets fell 13% and stood at Rs 24 billion in CY18.
• Overall, the total assets and liabilities for CY18 stood at Rs 34 billion as against Rs 34 billion during CY17, thereby witnessing a growth of 0%.

LINDE INDIA Balance Sheet as on December 2018

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*	% Change
Networth	Rs m	14,506	14,619	0.8
Current Liabilities	Rs m	10,197	13,635	33.7
Long-term Debt	Rs m	7,764	4,168	-46.3
Total Liabilities	Rs m	34,120	34,199	0.2
Current assets	Rs m	6,750	10,403	54.1
Fixed Assets	Rs m	27,371	23,796	-13.1
Total Assets	Rs m	34,120	34,199	0.2

LINDE INDIA Cash Flow Statement Analysis

• LINDE INDIA's cash flow from operating activities (CFO) during CY18 stood at Rs 4 billion, an improvement of 49.0% on a YoY basis.
• Cash flow from investing activities (CFI) during CY18 stood at Rs -728 million, an improvement of 22.8% on a YoY basis.
• Cash flow from financial activities (CFF) during CY18 stood at Rs -2 billion, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during CY18 stood at Rs 871 million from the Rs -682 million net cash flows seen during CY17.

LINDE INDIA Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-17	Dec-18
Cash Flow from Operating Activities	Rs m	2,521	3,756	49.0%
Cash Flow from Investing Activities	Rs m	-593	-728	-
Cash Flow from Financing Activities	Rs m	-2,610	-2,156	-
Net Cash Flow	Rs m	-682	871	-

Current Valuations for LINDE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 681.6, stands at 173.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 21.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Sales per share (Unadj.)	Rs	228.8	257.0
TTM Earnings per share	Rs	1.2	2.3
Diluted earnings per share	Rs	1.2	2.3
Price to Cash Flow	x	21.5	21.3
TTM P/E ratio	x	329.1	173.6
Price / Book Value ratio	x	2.6	3.2
Market Cap	Rs m	38,431	46,544
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for LINDE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during CY18, from 0.7x during CY17. 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 1.3x during CY18, from 1.1x during CY17. 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 1.3% during CY18, from 0.7% during CY18. 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 7.2% during CY18, from 5.6% during CY17. 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 3.6% during CY18, from 3.7% during CY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-17*	12 Dec-18*
Current ratio	x	0.7	0.8
Debtors’ Days	Days	66	61
Interest coverage	x	1.1	1.3
Debt to equity ratio	x	0.5	0.3
Return on assets	%	3.7	3.6
Return on equity	%	0.7	1.3
Return on capital employed	%	5.6	7.2

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

LINDE INDIA Share Price Performance

Over the last one year, LINDE INDIA share price has moved up from Rs 399.0 to Rs 441.2, registering a gain of Rs 42.2 or around 10.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,614.4 (up 0.1%). Over the last one year it has moved up from 13,563.6 to 14,614.4, a gain of 1,051 points (up 7.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of LINDE INDIA