Linde India (523457) Q4 2020 earnings summary

Executive summary

• FY2020 revenue fell 16.5% YoY, reflecting the prior-year South Region divestment and COVID-19 disruption; underlying gases revenue grew ~3%.

• Profit before tax before exceptional items rose to Rs 2,252.42 million, while net profit fell sharply against FY2019’s one-off divestment gain.

• Healthcare oxygen demand, operational resilience and a Project Engineering order book above Rs 11,000 million supported the business outlook.

Financial highlights

• Revenue from operations was Rs 14,711.24 million, down 16.5% YoY; EBITDA was Rs 4,074.85 million versus Rs 4,356.54 million.

• EBIT was Rs 2,314.85 million versus Rs 2,584.00 million; PBT before exceptional items increased to Rs 2,252.42 million from Rs 1,721.50 million.

• Net profit was Rs 1,555.35 million versus Rs 7,271.79 million; FY2019 included an Rs 8,407.55 million exceptional gain from the South Region business sale.

• Excluding the prior-year divestment gain, FY2020 exceptional profit was Rs 111.48 million, from additional consideration and reversal of provisions.

Outlook and guidance

• Management expected the recovery across steel, automotive, pharma, chemicals, cement, food and infrastructure to support gases demand; COVID-19 remained an ongoing uncertainty.

• Project Engineering order book exceeded Rs 11,000 million at 31 Dec 2020; refinery and steel expansion plans were identified as growth opportunities.

• The Board proposed a 30% dividend, or Rs 3 per share, subject to shareholder approval; expected cash outflow was Rs 255.85 million.