ABB INDIA 2022-23 Annual Report Analysis

Tue, 9 Apr

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

ABB INDIA Income Statement Analysis

• Operating income during the year rose 21.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in CY23 as against 14.6% in CY22.
• Depreciation charges increased by 14.5% and finance costs increased by 10.2% YoY, respectively.
• Other income grew by 35.2% YoY.
• Net profit for the year grew by 21.7% YoY.
• Net profit margins during the year declined from 12.0% in CY22 to 11.9% in CY23.

ABB INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	85,675	104,465	21.9%
Other income	Rs m	2,335	3,157	35.2%
Total Revenues	Rs m	88,011	107,623	22.3%
Gross profit	Rs m	12,494	14,800	18.5%
Depreciation	Rs m	1,047	1,199	14.5%
Interest	Rs m	154	170	10.2%
Profit before tax	Rs m	13,628	16,589	21.7%
Tax	Rs m	3,372	4,107	21.8%
Profit after tax	Rs m	10,256	12,482	21.7%
Gross profit margin	%	14.6	14.2
Effective tax rate	%	24.7	24.8
Net profit margin	%	12.0	11.9

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ABB INDIA Balance Sheet Analysis

• The company's current liabilities during CY23 stood at Rs 50 billion as compared to Rs 44 billion in CY22, thereby witnessing an increase of 15.3%.
• Current assets rose 21% and stood at Rs 95 billion, while fixed assets rose 2% and stood at Rs 14 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 109 billion as against Rs 92 billion during CY22, thereby witnessing a growth of 18%.

ABB INDIA Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	49,393	59,445	20.4
Current Liabilities	Rs m	43,503	50,142	15.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	92,284	108,985	18.1
Current assets	Rs m	78,986	95,475	20.9
Fixed Assets	Rs m	13,298	13,510	1.6
Total Assets	Rs m	92,284	108,985	18.1

ABB INDIA Cash Flow Statement Analysis

• ABB INDIA's cash flow from operating activities (CFO) during CY23 stood at Rs 14 billion, an improvement of 82.2% on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -34 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs -23 billion from the Rs 24 billion net cash flows seen during CY22.

ABB INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	7,419	13,515	82.2%
Cash Flow from Investing Activities	Rs m	18,262	-33,522	-
Cash Flow from Financing Activities	Rs m	-1,402	-2,695	-
Net Cash Flow	Rs m	24,278	-22,700	-

Current Valuations for ABB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.9, an improvement from the EPS of Rs 48.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,674.0, stands at 79.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.7 times, while the price to sales ratio stands at 9.5 times.
• The company's price to cash flow (P/CF) ratio stood at 59.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	404.3	493.0
TTM Earnings per share	Rs	48.4	58.9
Diluted earnings per share	Rs	48.4	58.9
Price to Cash Flow	x	50.3	59.0
TTM P/E ratio	x	77.1	79.4
Price / Book Value ratio	x	11.6	13.6
Market Cap	Rs m	571,120	806,963
Dividends per share (Unadj.)	Rs	5.5	29.3

Ratio Analysis for ABB INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during CY23, from 1.8x during CY22. 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 98.8x during CY23, from 89.5x during CY22. 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 21.0% during CY23, from 20.8% during CY23. 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 28.2% during CY23, from 27.9% during CY22. 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 11.6% during CY23, from 11.3% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	1.8	1.9
Debtors’ Days	Days	9	9
Interest coverage	x	89.5	98.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.3	11.6
Return on equity	%	20.8	21.0
Return on capital employed	%	27.9	28.2

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

ABB INDIA Share Price Performance

Over the last one year, ABB INDIA share price has moved up from Rs 2,154.3 to Rs 3,365.5, registering a gain of Rs 1,211.2 or around 56.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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