LINDE INDIA 2019-20 Annual Report Analysis

Thu, 31 Dec

LINDE INDIA has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

LINDE INDIA Income Statement Analysis

• Operating income during the year fell 16.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 70.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.6% in CY20 as against 71.2% in CY19.
• Depreciation charges decreased by 0.7% and finance costs decreased by 92.8% YoY, respectively.
• Other income grew by 51.8% YoY.
• Net profit for the year declined by 79.5% YoY.
• Net profit margins during the year declined from 41.3% in CY19 to 10.2% in CY20.

LINDE INDIA Income Statement 2019-20

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*	% Change
Net Sales	Rs m	17,618	14,711	-16.5%
Other income	Rs m	215	326	51.8%
Total Revenues	Rs m	17,833	15,038	-15.7%
Gross profit	Rs m	12,549	3,765	-70.0%
Depreciation	Rs m	1,773	1,760	-0.7%
Interest	Rs m	863	62	-92.8%
Profit before tax	Rs m	10,129	2,270	-77.6%
Tax	Rs m	2,857	776	-72.9%
Profit after tax	Rs m	7,272	1,494	-79.5%
Gross profit margin	%	71.2	25.6
Effective tax rate	%	28.2	34.2
Net profit margin	%	41.3	10.2

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LINDE INDIA Balance Sheet Analysis

• The company's current liabilities during CY20 down at Rs 7 billion as compared to Rs 8 billion in CY19, thereby witnessing an decrease of -11.2%.
• Current assets rose 12% and stood at Rs 11 billion, while fixed assets fell 4% and stood at Rs 22 billion in CY20.
• Overall, the total assets and liabilities for CY20 stood at Rs 33 billion as against Rs 32 billion during CY19, thereby witnessing a growth of 1%.

LINDE INDIA Balance Sheet as on December 2020

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*	% Change
Networth	Rs m	21,719	22,343	2.9
Current Liabilities	Rs m	7,845	6,964	-11.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	32,499	32,723	0.7
Current assets	Rs m	9,566	10,698	11.8
Fixed Assets	Rs m	22,933	22,024	-4.0
Total Assets	Rs m	32,499	32,723	0.7

LINDE INDIA Cash Flow Statement Analysis

• LINDE INDIA's cash flow from operating activities (CFO) during CY20 stood at Rs 3 billion, an improvement of 3.7% on a YoY basis.
• Cash flow from investing activities (CFI) during CY20 stood at Rs -541 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY20 stood at Rs -2 billion, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during CY20 stood at Rs 841 million from the Rs 1 billion net cash flows seen during CY19.

LINDE INDIA Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-19	Dec-20
Cash Flow from Operating Activities	Rs m	3,267	3,390	3.7%
Cash Flow from Investing Activities	Rs m	9,813	-541	-
Cash Flow from Financing Activities	Rs m	-11,926	-2,007	-
Net Cash Flow	Rs m	1,155	841	-27.2%

Current Valuations for LINDE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.5, an decline from the EPS of Rs 85.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 971.4, stands at 55.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at 18.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*
Sales per share (Unadj.)	Rs	206.6	172.5
TTM Earnings per share	Rs	85.3	17.5
Diluted earnings per share	Rs	85.3	17.5
Price to Cash Flow	x	6.2	18.1
TTM P/E ratio	x	7.8	55.4
Price / Book Value ratio	x	2.4	2.6
Market Cap	Rs m	52,109	58,946
Dividends per share (Unadj.)	Rs	10.0	3.0

Ratio Analysis for LINDE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during CY20, from 1.2x during CY19. 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 37.4x during CY20, from 12.7x during CY19. 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 declined and down at 6.7% during CY20, from 33.5% during CY20. 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 declined and down at 10.4% during CY20, from 50.6% during CY19. 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 4.8% during CY20, from 25.0% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-19*	12 Dec-20*
Current ratio	x	1.2	1.5
Debtors’ Days	Days	79	101
Interest coverage	x	12.7	37.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	25.0	4.8
Return on equity	%	33.5	6.7
Return on capital employed	%	50.6	10.4

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 down from Rs 488.0 to Rs 487.1, registering a loss of Rs 0.9 or around 0.2%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 10,020.9 (up 8.7%). Over the last one year it has moved down from 15,269.7 to 10,020.9, a loss of 5,249 points (down 34.4%).

Overall, the S&P BSE SENSEX is down 24.2% 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