ABBOTT INDIA 2021-22 Annual Report Analysis

Tue, 26 Jul

ABBOTT INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ABBOTT INDIA Income Statement Analysis

• Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.1% in FY22 as against 21.3% in FY21.
• Depreciation charges increased by 13.7% and finance costs increased by 4.5% YoY, respectively.
• Other income declined by 7.3% YoY.
• Net profit for the year grew by 15.6% YoY.
• Net profit margins during the year grew from 16.0% in FY21 to 16.2% in FY22.

ABBOTT INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	43,100	49,193	14.1%
Other income	Rs m	835	774	-7.3%
Total Revenues	Rs m	43,935	49,967	13.7%
Gross profit	Rs m	9,189	10,875	18.4%
Depreciation	Rs m	581	661	13.7%
Interest	Rs m	183	191	4.5%
Profit before tax	Rs m	9,260	10,797	16.6%
Tax	Rs m	2,353	2,810	19.5%
Profit after tax	Rs m	6,907	7,987	15.6%
Gross profit margin	%	21.3	22.1
Effective tax rate	%	25.4	26.0
Net profit margin	%	16.0	16.2

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

ABBOTT INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 12 billion as compared to Rs 10 billion in FY21, thereby witnessing an increase of 16.7%.
• Current assets rose 10% and stood at Rs 39 billion, while fixed assets rose 6% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 42 billion as against Rs 38 billion during FY21, thereby witnessing a growth of 10%.

ABBOTT INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	25,579	27,756	8.5
Current Liabilities	Rs m	10,309	12,032	16.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	38,226	42,072	10.1
Current assets	Rs m	34,874	38,530	10.5
Fixed Assets	Rs m	3,352	3,541	5.6
Total Assets	Rs m	38,226	42,072	10.1

ABBOTT INDIA Cash Flow Statement Analysis

• ABBOTT INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 9 billion, an improvement of 30.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 451.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -856 million from the Rs 731 million net cash flows seen during FY21.

ABBOTT INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	7,267	9,477	30.4%
Cash Flow from Investing Activities	Rs m	-718	-3,958	-
Cash Flow from Financing Activities	Rs m	-5,818	-6,374	-
Net Cash Flow	Rs m	731	-856	-

Current Valuations for ABBOTT INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 375.9, an improvement from the EPS of Rs 325.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19,635.0, stands at 52.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.0 times, while the price to sales ratio stands at 8.5 times.
• The company's price to cash flow (P/CF) ratio stood at 47.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2,028.2	2,315.0
TTM Earnings per share	Rs	325.0	375.9
Diluted earnings per share	Rs	325.0	375.9
Price to Cash Flow	x	42.5	47.2
TTM P/E ratio	x	46.1	52.2
Price / Book Value ratio	x	13.5	14.7
Market Cap	Rs m	345,717	408,573
Dividends per share (Unadj.)	Rs	275.0	275.0

Ratio Analysis for ABBOTT INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.2x during FY22, from 3.4x during FY21. 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 57.5x during FY22, from 51.7x during FY21. 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 28.8% during FY22, from 27.0% during FY22. 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 39.6% during FY22, from 36.9% during FY21. 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 19.4% during FY22, from 18.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.4	3.2
Debtors’ Days	Days	2	2
Interest coverage	x	51.7	57.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.5	19.4
Return on equity	%	27.0	28.8
Return on capital employed	%	36.9	39.6

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 17,852.1 to Rs 19,635.0, registering a gain of Rs 1,783.0 or around 10.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,402.5 (down 0.4%). Over the last one year it has moved down from 26,492.6 to 22,402.5, a loss of 4,090 points (down 15.4%).

Overall, the S&P BSE SENSEX is up 5.2% 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