LINDE INDIA 2020-21 Annual Report Analysis

Fri, 31 Dec

LINDE INDIA has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

LINDE INDIA Income Statement Analysis

• Operating income during the year rose 43.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 118.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.9% in CY21 as against 25.6% in CY20.
• Depreciation charges increased by 3.0% and finance costs decreased by 51.1% YoY, respectively.
• Other income grew by 70.1% YoY.
• Net profit for the year grew by 235.8% YoY.
• Net profit margins during the year grew from 10.2% in CY20 to 23.8% in CY21.

LINDE INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	14,711	21,120	43.6%
Other income	Rs m	326	555	70.1%
Total Revenues	Rs m	15,038	21,675	44.1%
Gross profit	Rs m	3,765	8,212	118.1%
Depreciation	Rs m	1,760	1,814	3.0%
Interest	Rs m	62	31	-51.1%
Profit before tax	Rs m	2,270	6,923	205.0%
Tax	Rs m	776	1,907	145.9%
Profit after tax	Rs m	1,494	5,016	235.8%
Gross profit margin	%	25.6	38.9
Effective tax rate	%	34.2	27.5
Net profit margin	%	10.2	23.8

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LINDE INDIA Balance Sheet Analysis

• The company's current liabilities during CY21 stood at Rs 9 billion as compared to Rs 7 billion in CY20, thereby witnessing an increase of 23.2%.
• Current assets rose 72% and stood at Rs 19 billion, while fixed assets fell 2% and stood at Rs 21 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 40 billion as against Rs 33 billion during CY20, thereby witnessing a growth of 22%.

LINDE INDIA Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	22,343	27,149	21.5
Current Liabilities	Rs m	7,102	8,753	23.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	32,861	40,166	22.2
Current assets	Rs m	10,861	18,683	72.0
Fixed Assets	Rs m	22,000	21,483	-2.3
Total Assets	Rs m	32,861	40,166	22.2

LINDE INDIA Cash Flow Statement Analysis

• LINDE INDIA's cash flow from operating activities (CFO) during CY21 stood at Rs 6 billion, an improvement of 73.7% on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs 984 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -282 million, an improvement of 86% on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs 7 billion from the Rs 841 million net cash flows seen during CY20.

LINDE INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	3,390	5,889	73.7%
Cash Flow from Investing Activities	Rs m	-541	984	-
Cash Flow from Financing Activities	Rs m	-2,007	-282	-
Net Cash Flow	Rs m	841	6,591	683.7%

Current Valuations for LINDE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.8, an improvement from the EPS of Rs 17.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,490.8, stands at 42.3 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 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	172.5	247.6
TTM Earnings per share	Rs	17.5	58.8
Diluted earnings per share	Rs	17.5	58.8
Price to Cash Flow	x	25.5	23.9
TTM P/E ratio	x	55.4	42.3
Price / Book Value ratio	x	2.6	6.0
Market Cap	Rs m	58,946	163,447
Dividends per share (Unadj.)	Rs	3.0	13.5

Ratio Analysis for LINDE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during CY21, from 1.5x during CY20. 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 227.7x during CY21, from 37.4x during CY20. 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 18.5% during CY21, from 6.7% during CY21. 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 25.6% during CY21, from 10.4% during CY20. 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 improved and stood at 12.6% during CY21, from 4.7% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	1.5	2.1
Debtors’ Days	Days	101	68
Interest coverage	x	37.4	227.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.7	12.6
Return on equity	%	6.7	18.5
Return on capital employed	%	10.4	25.6

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 487.1 to Rs 1,800.6, registering a gain of Rs 1,313.5 or around 269.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,820.5 (down 0.1%). Over the last one year it has moved up from 10,020.9 to 14,820.5, a gain of 4,800 points (up 47.9%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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