ABBOTT INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

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

ABBOTT INDIA Income Statement Analysis

• Operating income during the year rose 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.3% in FY21 as against 18.5% in FY20.
• Depreciation charges decreased by 2.5% and finance costs increased by 114.3% YoY, respectively.
• Other income declined by 27.2% YoY.
• Net profit for the year grew by 16.5% YoY.
• Net profit margins during the year grew from 14.5% in FY20 to 16.0% in FY21.

ABBOTT INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	40,931	43,100	5.3%
Other income	Rs m	1,147	835	-27.2%
Total Revenues	Rs m	42,078	43,935	4.4%
Gross profit	Rs m	7,562	9,189	21.5%
Depreciation	Rs m	596	581	-2.5%
Interest	Rs m	85	183	114.3%
Profit before tax	Rs m	8,027	9,260	15.4%
Tax	Rs m	2,098	2,353	12.2%
Profit after tax	Rs m	5,929	6,907	16.5%
Gross profit margin	%	18.5	21.3
Effective tax rate	%	26.1	25.4
Net profit margin	%	14.5	16.0

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ABBOTT INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 10 billion as compared to Rs 9 billion in FY20, thereby witnessing an increase of 15.7%.
• Current assets rose 10% and stood at Rs 35 billion, while fixed assets fell 7% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 38 billion as against Rs 35 billion during FY20, thereby witnessing a growth of 8%.

ABBOTT INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	23,959	25,579	6.8
Current Liabilities	Rs m	8,911	10,309	15.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	35,324	38,226	8.2
Current assets	Rs m	32,047	35,185	9.8
Fixed Assets	Rs m	3,278	3,041	-7.2
Total Assets	Rs m	35,324	38,226	8.2

ABBOTT INDIA Cash Flow Statement Analysis

• ABBOTT INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 16.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -718 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 731 million from the Rs 81 million net cash flows seen during FY20.

ABBOTT INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	6,261	7,267	16.1%
Cash Flow from Investing Activities	Rs m	-4,012	-718	-
Cash Flow from Financing Activities	Rs m	-2,168	-5,818	-
Net Cash Flow	Rs m	81	731	799.5%

Current Valuations for ABBOTT INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 325.0, an improvement from the EPS of Rs 279.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14,988.7, stands at 46.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.5 times, while the price to sales ratio stands at 7.4 times.
• The company's price to cash flow (P/CF) ratio stood at 46.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	1,926.2	2,028.2
TTM Earnings per share	Rs	279.0	325.0
Diluted earnings per share	Rs	279.0	325.0
Price to Cash Flow	x	50.3	46.2
TTM P/E ratio	x	55.4	46.1
Price / Book Value ratio	x	10.7	13.5
Market Cap	Rs m	255,193	345,717
Dividends per share (Unadj.)	Rs	250.0	275.0

Ratio Analysis for ABBOTT INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.4x during FY21, from 3.6x during FY20. 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 deteriorated and stood at 51.7x during FY21, from 95.1x during FY20. 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 27.0% during FY21, from 24.7% during FY21. 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 36.9% during FY21, from 33.9% during FY20. 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 18.5% during FY21, from 17.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	3.6	3.4
Debtors’ Days	Days	3	2
Interest coverage	x	95.1	51.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.0	18.5
Return on equity	%	24.7	27.0
Return on capital employed	%	33.9	36.9

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

ABBOTT INDIA Share Price Performance

Over the last one year, ABBOTT INDIA share price has moved down from Rs 15,455.5 to Rs 14,988.7, registering a loss of Rs 466.9 or around 3.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

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

Read: Latest Annual Report Analysis of ABBOTT INDIA