ABBOTT INDIA 2020-21 Annual Report Analysis

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ABBOTT INDIA 2020-21 Annual Report Analysis
Mon, 9 Aug

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 14.1% in FY20 to 15.7% 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 % 14.1 15.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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



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 17,538.4, stands at 52.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.5 times, while the price to sales ratio stands at 8.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 49.8 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 57.1 49.8
TTM P/E ratio x 52.8 52.8
Price / Book Value ratio x 10.7 13.5
Market Cap Rs m 372,679 372,679
Dividends per share (Unadj.) Rs 250.0 275.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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 up from Rs 16,188.6 to Rs 17,538.4, registering a gain of Rs 1,349.8 or around 8.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,357.8 (down 0.0%). Over the last one year it has moved up from 18,760.8 to 26,357.8, a gain of 7,597 points (up 40.5%).

Overall, the S&P BSE SENSEX is up 44.4% over the year.

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

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Related Views on News

ABBOTT INDIA Announces Quarterly Results (1QFY22); Net Profit Up 8.5% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, ABBOTT INDIA has posted a net profit of Rs 2 bn (up 8.5% YoY). Sales on the other hand came in at Rs 12 bn (up 14.4% YoY). Read on for a complete analysis of ABBOTT INDIA's quarterly results.

ABBOTT INDIA Announces Quarterly Results (4QFY21); Net Profit Up 37.4% (Quarterly Result Update)

Jul 8, 2021 | Updated on Jul 8, 2021

For the quarter ended March 2021, ABBOTT INDIA has posted a net profit of Rs 2 bn (up 37.4% YoY). Sales on the other hand came in at Rs 11 bn (up 14.0% YoY). Read on for a complete analysis of ABBOTT INDIA's quarterly results.

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