ABBOTT INDIA 2022-23 Annual Report Analysis

Tue, 18 Jul

ABBOTT INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ABBOTT INDIA Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.5% in FY23 as against 22.0% in FY22.
• Depreciation charges increased by 5.9% and finance costs decreased by 16.3% YoY, respectively.
• Other income grew by 85.1% YoY.
• Net profit for the year grew by 18.9% YoY.
• Net profit margins during the year grew from 16.3% in FY22 to 17.8% in FY23.

ABBOTT INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	49,133	53,487	8.9%
Other income	Rs m	834	1,543	85.1%
Total Revenues	Rs m	49,967	55,030	10.1%
Gross profit	Rs m	10,816	12,055	11.5%
Depreciation	Rs m	661	700	5.9%
Interest	Rs m	191	160	-16.3%
Profit before tax	Rs m	10,797	12,738	18.0%
Tax	Rs m	2,810	3,244	15.4%
Profit after tax	Rs m	7,987	9,494	18.9%
Gross profit margin	%	22.0	22.5
Effective tax rate	%	26.0	25.5
Net profit margin	%	16.3	17.8

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ABBOTT INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 12 billion as compared to Rs 12 billion in FY22, thereby witnessing an increase of 0.2%.
• Current assets fell 21% and stood at Rs 30 billion, while fixed assets rose 327% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 45 billion as against Rs 42 billion during FY22, thereby witnessing a growth of 8%.

ABBOTT INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	27,756	31,460	13.3
Current Liabilities	Rs m	12,032	12,060	0.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	42,072	45,386	7.9
Current assets	Rs m	38,530	30,251	-21.5
Fixed Assets	Rs m	3,541	15,135	327.4
Total Assets	Rs m	42,072	45,386	7.9

ABBOTT INDIA Cash Flow Statement Analysis

• ABBOTT INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -856 million net cash flows seen during FY22.

ABBOTT INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	9,477	8,934	-5.7%
Cash Flow from Investing Activities	Rs m	-3,958	-1,477	-
Cash Flow from Financing Activities	Rs m	-6,374	-6,387	-
Net Cash Flow	Rs m	-856	1,070	-

Current Valuations for ABBOTT INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 446.8, an improvement from the EPS of Rs 375.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 23,000.0, stands at 51.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.5 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 40.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	2,312.2	2,517.0
TTM Earnings per share	Rs	375.9	446.8
Diluted earnings per share	Rs	375.9	446.8
Price to Cash Flow	x	43.5	40.3
TTM P/E ratio	x	47.1	51.5
Price / Book Value ratio	x	14.7	13.0
Market Cap	Rs m	408,573	410,513
Dividends per share (Unadj.)	Rs	275.0	325.0

Ratio Analysis for ABBOTT INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY23, from 3.2x during FY22. 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 80.7x during FY23, from 57.5x during FY22. 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 30.2% during FY23, from 28.8% during FY23. 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 41.0% during FY23, from 39.6% during FY22. 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 21.3% during FY23, from 19.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.2	2.5
Debtors’ Days	Days	2	2
Interest coverage	x	57.5	80.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.4	21.3
Return on equity	%	28.8	30.2
Return on capital employed	%	39.6	41.0

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 19,858.0 to Rs 23,000.0, registering a gain of Rs 3,142.1 or around 15.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,264.7 (down 0.7%). Over the last one year it has moved up from 22,630.1 to 26,264.7, a gain of 3,635 points (up 16.1%).

Overall, the S&P BSE SENSEX is up 24.7% over the year.

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