LINDE INDIA 2019-20 Annual Report Analysis

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LINDE INDIA 2019-20 Annual Report Analysis
Tue, 26 Oct

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 71.3% in CY19.
  • Depreciation charges decreased by 0.7% and finance costs decreased by 92.8% YoY, respectively.
  • Other income grew by 56.0% YoY.
  • Net profit for the year declined by 79.5% YoY.
  • Net profit margins during the year declined from 40.8% in CY19 to 9.9% 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 209 326 56.0%
Total Revenues Rs m 17,827 15,038 -15.6%
Gross profit Rs m 12,555 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 % 71.3 25.6
Effective tax rate % 28.2 34.2
Net profit margin % 40.8 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 2,363.6, stands at 43.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 4.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 61.9 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 22.3 61.9
TTM P/E ratio x 43.4 43.4
Price / Book Value ratio x 2.4 2.6
Market Cap Rs m 201,578 201,578
Dividends per share (Unadj.) Rs 10.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 823.2 to Rs 2,363.6, registering a gain of Rs 1,540.5 or around 187.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,853.7 (up 1.2%). Over the last one year it has moved up from 12,006.0 to 18,853.7, a gain of 6,848 points (up 57.0%).

Overall, the S&P BSE SENSEX is up 51.5% 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 (1QFY22); Net Profit Up 261.9% (Quarterly Result Update)

Aug 12, 2021 | Updated on Aug 12, 2021

For the quarter ended June 2021, LINDE INDIA has posted a net profit of Rs 705 m (up 261.9% YoY). Sales on the other hand came in at Rs 5 bn (up 109.2% YoY). Read on for a complete analysis of LINDE INDIA's quarterly results.

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.

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