Linde India (523457) Q4 2021 earnings summary

Executive summary

• FY21 marked a sharp recovery: revenue from operations rose 43.6% YoY to Rs. 21,119.58 million despite the South Region Divestment Business exit.

• Higher volumes, pricing actions, productivity gains and lower fixed costs lifted pre-exceptional EBITDA 47.6% to Rs. 6,012.51 million; reported PAT included a substantial gain on Kolkata land disposal.

• Both operating segments rebounded, while investment in merchant and onsite ASUs and a packaged-gases acquisition supported planned growth.

Financial highlights

• FY21 standalone revenue was Rs. 21,119.58 million versus Rs. 14,711.24 million in FY20, up 43.6% YoY.

• Pre-exceptional EBITDA rose to Rs. 6,012.51 million from Rs. 4,074.85 million; PBT before exceptional items was Rs. 4,168.30 million versus Rs. 2,252.42 million.

• Reported PAT was Rs. 5,139.44 million versus Rs. 1,555.35 million; FY21 included Rs. 2,944.26 million exceptional profit from Kolkata land disposal.

• Cash generated from operations increased 73.7% to Rs. 5,888.78 million; cash and cash equivalents reached Rs. 9,832.93 million at year-end.

• Consolidated FY21 revenue was Rs. 21,119.58 million, PAT Rs. 5,072.18 million and EPS Rs. 59.47; exceptional items included Belloxy impairment.

Outlook and guidance

• Medium- and long-term prospects were viewed positively, supported by manufacturing, infrastructure and sector investment; management remained cautiously optimistic amid geopolitical tensions.

• Dahej and Ludhiana merchant ASUs were expected to come on stream by October and December 2023, respectively; the 900 tpd Bokaro onsite ASU was under construction.

• Growth opportunities identified included steel, refineries, healthcare, renewable energy, semiconductors, food processing and hospital oxygen PSA plants.