LINDE INDIA 2017-18 Annual Report Analysis

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LINDE INDIA 2017-18 Annual Report Analysis
Tue, 30 Apr

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 7.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 0.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in CY18 as against 16.4% in CY17.
  • Depreciation charges decreased by 3.5% and finance costs decreased by 11.8% YoY, respectively.
  • Other income grew by 8.0% YoY.
  • Net profit for the year grew by 58.7% YoY.
  • Net profit margins during the year grew from 0.8% in CY17 to 1.2% in CY18.

LINDE INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
Net Sales Rs m 20,331 21,917 7.8%
Other income Rs m 78 84 8.0%
Total Revenues Rs m 20,408 22,000 7.8%
Gross profit Rs m 3,339 3,328 -0.3%
Depreciation Rs m 2,063 1,991 -3.5%
Interest Rs m 1,165 1,027 -11.8%
Profit before tax Rs m 189 394 108.2%
Tax Rs m -28 137 -592.1%
Profit after tax Rs m 162 257 58.7%
Gross profit margin % 16.4 15.2
Effective tax rate % -14.7 34.7
Net profit margin % 0.8 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 32.8%.
  • Long-term debt down at Rs 4 billion as compared to Rs 8 billion during CY17, a fall of 46.3%.
  • Current assets rose 12% and stood at Rs 8 billion, while fixed assets fell 15% and stood at Rs 22 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 fall 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 13,538 32.8
Long-term Debt Rs m 7,764 4,168 -46.3
Total Liabilities Rs m 34,121 34,103 -0.1
 
Current assets Rs m 6,750 7,552 11.9
Fixed Assets Rs m 25,913 22,060 -14.9
Total Assets Rs m 34,121 34,103 -0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 50.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during CY18 stood at Rs -735 million, an improvement of 24.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during CY18 stood at Rs -2 billion, an improvement of 16% on a YoY basis.
  • Overall, net cash flows for the company during CY18 stood at Rs 871 million from the Rs -683 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 3,803 50.9%
Cash Flow from Investing Activities Rs m -593 -735 -
Cash Flow from Financing Activities Rs m -2,611 -2,197 -
Net Cash Flow Rs m -683 871 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for LINDE INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an improvement from the EPS of Rs 1.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 484.0, stands at 175.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.1 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 238.4 257.0
TTM Earnings per share Rs 1.9 3.0
Diluted earnings per share Rs 1.3 2.1
Price to Cash Flow x 18.6 26.1
TTM P/E ratio x 123.3 175.6
Price / Book Value ratio x 2.6 3.2
Market Cap Rs m 41,271 58,790
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for LINDE INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.6x 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 1.4x during CY18, from 1.2x 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 1.8% during CY18, from 1.1% 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 7.6% during CY18, from 5.8% 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 3.8% during CY18, from 3.9% 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 0.6
Debtors’ Days Days 63 59
Interest coverage x 1.2 1.4
Debt to equity ratio x 0.5 0.3
Return on assets % 3.9 3.8
Return on equity % 1.1 1.8
Return on capital employed % 5.8 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 450.9 to Rs 484.0, registering a gain of Rs 33.1 or around 7.3%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 15,217.8 (up 0.2%). Over the last one year it has moved up from 14,429.5 to 15,217.8, a gain of 788 points (up 5.5%).

Overall, the S&P BSE SENSEX is up 11.9% over the year.

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

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Related Views on News

LINDE INDIA Announces Quarterly Results (4QFY20); Net Profit Up 9.7% (Quarterly Result Update)

Apr 21, 2020 | Updated on Apr 21, 2020

For the quarter ended March 2020, LINDE INDIA has posted a net profit of Rs 390 m (up 9.7% YoY). Sales on the other hand came in at Rs 4 bn (down 14.5% YoY). Read on for a complete analysis of LINDE INDIA's quarterly results.

LINDE INDIA Announces Quarterly Results (1QFY20); Net Profit Up 284.1% (Quarterly Result Update)

Jul 24, 2019 | Updated on Jul 24, 2019

For the quarter ended June 2019, LINDE INDIA has posted a net profit of Rs 202 m (up 284.1% YoY). Sales on the other hand came in at Rs 5 bn (down 9.4% YoY). Read on for a complete analysis of LINDE INDIA's quarterly results.

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