WOCKHARDT 2022-23 Annual Report Analysis

Wed, 2 Aug

WOCKHARDT 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.

WOCKHARDT Income Statement Analysis

• Operating income during the year fell 17.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 7.3% in FY23 as against 3.6% in FY22.
• Depreciation charges increased by 1.6% and finance costs increased by 1.0% YoY, respectively.
• Other income grew by 510.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 8.6% in FY22 to 23.4% in FY23.

WOCKHARDT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	32,300	26,510	-17.9%
Other income	Rs m	200	1,220	510.0%
Total Revenues	Rs m	32,500	27,730	-14.7%
Gross profit	Rs m	1,150	-1,930	NA
Depreciation	Rs m	2,470	2,510	1.6%
Interest	Rs m	2,990	3,020	1.0%
Profit before tax	Rs m	-4,110	-6,240	NA
Tax	Rs m	-1,320	-30	NA
Profit after tax	Rs m	-2,790	-6,210	NA
Gross profit margin	%	3.6	-7.3
Effective tax rate	%	32.1	0.5
Net profit margin	%	-8.6	-23.4

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WOCKHARDT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 34 billion as compared to Rs 32 billion in FY22, thereby witnessing an increase of 7.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY22, a fall of 36.9%.
• Current assets fell 22% and stood at Rs 19 billion, while fixed assets fell 4% and stood at Rs 49 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 71 billion as against Rs 77 billion during FY22, thereby witnessing a fall of 8%.

WOCKHARDT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	38,310	33,380	-12.9
Current Liabilities	Rs m	32,070	34,350	7.1
Long-term Debt	Rs m	3,550	2,240	-36.9
Total Liabilities	Rs m	76,700	70,750	-7.8
Current assets	Rs m	24,450	19,140	-21.7
Fixed Assets	Rs m	50,810	48,670	-4.2
Total Assets	Rs m	76,700	70,750	-7.8

WOCKHARDT Cash Flow Statement Analysis

• WOCKHARDT's cash flow from operating activities (CFO) during FY23 stood at Rs 2 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 -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 billion from the Rs 1 billion net cash flows seen during FY22.

WOCKHARDT 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	4,130	1,530	-63.0%
Cash Flow from Investing Activities	Rs m	-2,010	-1,250	-
Cash Flow from Financing Activities	Rs m	-710	-3,150	-
Net Cash Flow	Rs m	1,380	-2,800	-

Current Valuations for WOCKHARDT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -43.1, an decline from the EPS of Rs -19.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 248.5, stands at -5.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at -9.0 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	224.2	184.0
TTM Earnings per share	Rs	-19.4	-43.1
Diluted earnings per share	Rs	-19.4	-43.1
Price to Cash Flow	x	-118.8	-9.0
TTM P/E ratio	x	-13.6	-5.8
Price / Book Value ratio	x	2.0	1.0
Market Cap	Rs m	76,186	33,202
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WOCKHARDT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 0.8x 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 deteriorated and stood at -1.1x during FY23, from -0.4x 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 declined and down at -18.6% during FY23, from -7.3% 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 declined and down at -9.0% during FY23, from -2.7% 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 declined and down at -4.5% during FY23, from 0.3% 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	0.8	0.6
Debtors’ Days	Days	10	11
Interest coverage	x	-0.4	-1.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	0.3	-4.5
Return on equity	%	-7.3	-18.6
Return on capital employed	%	-2.7	-9.0

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

WOCKHARDT Share Price Performance

Over the last one year, WOCKHARDT share price has moved up from Rs 233.8 to Rs 248.5, registering a gain of Rs 14.7 or around 6.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,485.7 (down 0.6%). Over the last one year it has moved up from 22,962.3 to 27,485.7, a gain of 4,523 points (up 19.7%).

Overall, the S&P BSE SENSEX is up 13.2% over the year.

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